![]() ![]() Sending out confusing or deceptive debt collection letters.Calling you repeatedly to the point of harassment.Calling you late at night or early in the morning.Here are some kinds of behavior that state and federal laws forbid: The Telephone Robocall Abuse Criminal Enforcement and Deterrence Act andĮXAMPLES OF ILLEGAL DEBT COLLECTOR BEHAVIOR:.The California Rosenthal Fair Debt Collection Practices Act (applies only in California).The Fair Debt Collection Practices Act (applies to third-party debt collectors).All of these statutes are federal, meaning that they apply everywhere in the US, unless proven otherwise. Following is a list of statutes that govern debt collector behavior. California state law, for example, is particularly protective of consumers. YOUR LEGAL ARSENAL:įederal law, as well as many state laws, strictly regulate the behavior of debt collectors. It is important to point out that, to the extent that Comenity Bank is an original creditor (as opposed to a third-party creditor such a debt collection agency), you wouldn’t expect all that many lawsuits against them, because their agreements with their debtors almost always contain enforceable arbitration clauses, which keeps disputes out of court. One plaintiff, for example, complained that she had received 500 robocalls from Comenity.īelow is a very incomplete list of some of the other lawsuits that have been filed against Comenity Bank: The TCPA prohibits robocalls - repeated automated dialing calls. More than one lawsuit has been filed against Comenity Bank for violation of the Telephone Consumer Protection Act (TCPA) by Comenity in the process of debt collection. Among other terms, it required Comenity to pay $2 million in civil fines, as well as a shocking $53 million in refunds to consumers who were harmed by Comenity’s deceptive practices. In 2015 the Federal Deposit Insurance Corporation (FDIC), the US government entity with authority over the nation’s banking system, sued Comenity Bank and Comenity Capital Bank over deceptive marketing of add-on products, and settlement was reached in 2015. The fine print: “No interest if you pay within 12 months” really means “If you’re even one day late, we will retroactively assess all of your late fees for the entire year.” A consumer might, for example, miss $50 of a single payment and as a consequence, be charged $500 in interest that would not otherwise have been accrued.Excessive and compounding late fees (charging another late fee for failing to pay an original late fee on time).Repeatedly assessing unjustified late fees.Charging a finance charge even though the debtor paid in full before the deadline.Deducting 100 times more than the authorized amount from a debtor’s bank account ($5,277 instead of $52.77).Adding small amounts to the bill to cause the debtor to default on payment, as an excuse to charge a late fee that adds up to far more than the defaulted amount.Following is a small sample of some of the negative reviews (which seem to predominate): ![]() CONSUMER AFFAIRS COMPLAINTS:Ĭonsumer Affairs, a privately owned consumer watchdog, has received numerous complaints about Comenity Bank. An astonishing 2,673 complaints against Comenity have been closed in the last three years, 946 of which occurred during the last 12 months alone. ![]() Its customer review score was even worse - one star out of a possible five stars. The Comenity Bank Better Business Bureau (BBB) profile reveals a “C” rating, which is abysmal, since even businesses with poor customer reviews commonly receive A+ ratings. CONSUMER COMPLAINTS:Ĭomenity Bank has been the subject of an exceptionally high number of consumer complaints. Comenity itself has around 25 employees, and it maintains no branch office.Ĭomenity Bank and Comenity Capital Bank are the credit card banking subsidiaries of Alliance Data Systems Corporation. It works with retail establishments such as Abercrombie & Fitch, Motorola, Victoria’s Secret and many others. First incorporated in Delaware in May 1989, it provides branded and co-branded credit cards to retail consumers. Mailing address: PO Box 182273 Columbus, OH 43218-2273Ĭorporate headquarters: One Righter Parkway, Suite 100, Wilmington, DelawareĬomenity Bank is a state-chartered commercial bank. ![]()
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