Consumer complaint received 2025-03-03 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Bread Financial Holdings, Inc.
State: FL

Complaint narrative:
Comenity Bank XXXX XXXX XXXX  XXXX XXXX XXXX XXXX, OH XXXX Subject : Formal Dispute of Inaccurate Credit Reporting and Violation of Federal Consumer Laws Dear XXXX XXXX, XXXX am writing in response to your letter dated XX/XX/XXXX, regarding the XXXXXXXX XXXX XXXX XXXX Account ending in XXXX ) and your failure to properly address my Consumer Financial Protection Bureau XXXX CFPB ) Complaint Ref. No. XXXX. Comenity Banks continued reporting of a charge-off status with a {$0.00} balance is not only misleading and damaging but also a clear violation of multiple federal consumer protection laws. 

Your reporting to XXXX as follows is both inaccurate and harmful : Last Updated : XX/XX/XXXX Payment Status : Charged Off as Bad Debt Worst Delinquency : None Reported Balance : {$0.00} XXXX XXXX : {$2500.00} Closed Date : XX/XX/XXXX Open Date : XX/XX/XXXX Last Activity : XX/XX/XXXX High Balance : {$3200.00} Loan Type : Charge Account Responsibility : Individual Account Company Name : ComenityBankXXXX Card Comments : Purchased by Another Lender Violations of Federal Law & Inaccurate Reporting Failure to Comply with the Fair Credit Reporting Act ( FCRA ) - 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) : Comenity Bank has confirmed that the account was charged off on XX/XX/XXXX, and sold to XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX. 
Despite having XXXX financial interest in the account, Comenity continues to report a charge-off, misleading lenders and harming my creditworthiness. 
The FCRA strictly prohibits furnishers from reporting inaccurate, misleading, or obsolete information that can adversely affect a consumer 's credit profile.

Failure to Update or Correct Reporting - 15 U.S.C. 1681s-2 ( a ) ( 2 ) : Comenity Bank has an affirmative duty to update, correct, and prevent the furnishing of misleading information to credit reporting agencies. 
Since Comenity Bank has acknowledged that the account was sold and the balance is {$0.00}, it has a duty to cease reporting the charge-off under its name.

Obligation for Maximum Possible Accuracy - 15 U.S.C. 1681e ( b ) : Credit reporting agencies are required to ensure maximum possible accuracy in consumer reports.

Because Comenitys charge-off reporting misleads potential creditors, XXXX is XXXX in violation of this statute by failing to verify and correct the information. 
Obligation to Delete or Modify Inaccurate or Unverifiable Information - 15 U.S.C. 1681i ( a ) ( 5 ) : The FCRA mandates that if information can not be verified or is misleading, it must be removed or corrected.

Since Comenity has failed to provide any documentation justifying continued reporting, this account must be deleted or updated to remove the charge-off status.

Civil Liability for Willful and Negligent Noncompliance - 15 U.S.C. 1681n & 1681o : If Comenity Bank knowingly or negligently refuses to correct or delete misleading information, I am entitled to : Statutory damages up to {$1000.00} per violation Punitive damages for willful noncompliance Attorney fees and court costs if legal action becomes necessary Prohibition on False or Misleading Representations - FDCPA - 15 U.S.C. 1692e ( 8 ) : If Comenity Bank no longer owns the debt, yet continues to report it as a charge-off, this constitutes a false or misleading representation under the Fair Debt Collection Practices Act ( FDCPA ). 
This could be seen as an attempt to coerce inaccurate reporting to damage my creditworthiness, which is an unfair practice prohibited by federal law. 
Formal Demand for Immediate Action Given the clear violations above, I formally demand that Comenity Bank : Immediately cease reporting the charge-off status and remove all derogatory remarks under Comenity Banks name, as you no longer have ownership of this account. 
Provide documentation justifying why you continue reporting the charge-off under your name despite selling the debt in XXXX. 
Notify XXXX that Comenity Bank should no longer be furnishing data on this account, ensuring my credit file reflects only the correct, lawful data.

Legal Action & Escalation Notice If Comenity Bank fails to comply within 15 days, I will proceed with the following actions : File an additional CFPB complaint, citing Comenity Banks continued misleading credit reporting and noncompliance with the FCRA. 
Submit a formal dispute with XXXX, requesting an investigation into Comenitys unauthorized reporting of a sold debt.

Pursue legal action under 15 U.S.C. 1681n and 1681o, seeking statutory and punitive damages for willful noncompliance.

This letter serves as final notice before I escalate this matter further. I expect an immediate resolution and written confirmation that my requests have been processed.

Company response to consumer: Closed with explanation