Credit card -- Fees or interest -- Complaint #18108000
Consumer disputes high interest charges on Bread Financial credit card.
Complaint Overview
Complaint ID: 18108000
Company: Bread Financial Holdings, INC.
Product: Credit card
Sub-Product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-Issue: Charged too much interest
State: Minnesota
ZIP Code: 55129
Date Received: 2025-10-31T12:00:00-05:00
Date Sent to Company: 2025-12-05T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Risk Assessment
Risk Level: medium
The consumer alleges being charged more interest than legally permissible or contractually agreed upon, which could indicate a pattern of overcharging or miscalculation.
Consumer Sentiment: negative
Topics: Credit card, Interest charges, Fees
AI Analysis
CFPB complaint 18108000 was filed against Bread Financial Holdings, Inc. regarding Credit card (General-purpose credit card or charge card), specifically about "Fees or interest". A consumer was charged excessive interest on their general-purpose credit card by Bread Financial Holdings, Inc. The complaint was received on October 31, 2025 from Minnesota. The company responded with "Closed with explanation".
What You Should Do -- Consumer Action Plan
Consumers should carefully review their credit card statements for accuracy, especially regarding interest calculations, and compare them to their cardholder agreement.
Legal Context & Consumer Protection Laws
Truth in Lending Act (TILA) and state usury laws govern interest rate calculations and disclosures on credit cards.
Regulatory Insight
Regulators may examine if the interest charges comply with TILA disclosure requirements and if the Annual Percentage Rate (APR) exceeds legal limits.
Resolution Likelihood
mixed
State-Specific Consumer Protections
Minnesota law may have specific provisions regarding credit card interest rates and fees that could be relevant to this complaint.
Industry Comparison
Disputes over interest charges are common in the credit card industry, often stemming from complex APR calculations or promotional rate expirations.
Related Issues
Frequently Asked Questions
What is CFPB complaint 18108000 about?
CFPB complaint 18108000 involves Credit card (General-purpose credit card or charge card). The consumer reported an issue with "Fees or interest", specifically "Charged too much interest". This complaint was filed against Bread Financial Holdings, Inc. on October 31, 2025.
Which company is complaint 18108000 filed against?
Complaint 18108000 was filed against Bread Financial Holdings, Inc.. You can view all complaints against this company on their profile page at /company/bread-financial-holdings-inc.
What was the company's response to complaint 18108000?
Bread Financial Holdings, Inc. responded with "Closed with explanation". The response was marked as timely by the CFPB.
When was complaint 18108000 filed?
Complaint 18108000 was received by the CFPB on October 31, 2025. It was sent to Bread Financial Holdings, Inc. on December 5, 2025.
What state was complaint 18108000 filed from?
Complaint 18108000 was filed from Minnesota. You can view all complaints from this state at /state/MN.
Was the consumer satisfied with the resolution of complaint 18108000?
Dispute information is not available for complaint 18108000.
What product category is complaint 18108000 about?
Complaint 18108000 is categorized under "Credit card", specifically "General-purpose credit card or charge card". This is one of the product categories tracked by the CFPB.
How was complaint 18108000 submitted?
Complaint 18108000 was submitted via Web. The CFPB accepts complaints through web, phone, mail, email, fax, and referral channels.
What are the consumer's legal options for complaint 18108000?
Truth in Lending Act (TILA) and state usury laws govern interest rate calculations and disclosures on credit cards. This relates to a Credit card complaint against Bread Financial Holdings, Inc. involving "Fees or interest".
How likely is complaint 18108000 to be resolved?
Resolution likelihood: mixed. The company's current response is "Closed with explanation". The company did respond in a timely manner, which is a positive indicator.
What does the risk level mean for complaint 18108000?
This complaint is rated as medium risk. The consumer alleges being charged more interest than legally permissible or contractually agreed upon, which could indicate a pattern of overcharging or miscalculation.
What regulatory actions apply to complaint 18108000?
Regulators may examine if the interest charges comply with TILA disclosure requirements and if the Annual Percentage Rate (APR) exceeds legal limits. The CFPB tracks complaints like this one to identify patterns of misconduct across the Credit card industry.
What should the consumer do about complaint 18108000?
Consumers should carefully review their credit card statements for accuracy, especially regarding interest calculations, and compare them to their cardholder agreement.
Are there state-specific protections for complaint 18108000?
Minnesota law may have specific provisions regarding credit card interest rates and fees that could be relevant to this complaint. This complaint was filed from Minnesota.
How does complaint 18108000 compare to industry norms?
Disputes over interest charges are common in the credit card industry, often stemming from complex APR calculations or promotional rate expirations.
What specific details in the credit card agreement could justify the interest rate charged?
The credit card agreement would detail the Annual Percentage Rate (APR), including any variable rate components, penalty APRs, and how interest is calculated (e.g., average daily balance method).
Under what circumstances can a credit card company legally charge a high interest rate?
Credit card companies can charge high interest rates based on the cardholder's creditworthiness, market conditions, and terms outlined in the cardholder agreement, including penalty rates for late payments or exceeding credit limits.
Disclaimer
This analysis is AI-generated and does not constitute legal advice.