CSK&D Files Class Action Against Comenity Bank and Bread Financial for Long-term System Outages and Account Closures

On July 26, 2022, CSK&D, along with co-counsel, filed a class action complaint against Defendants Comenity Capital Bank and Bread Financial Holdings, Inc., on behalf of cardholders of credit cards issued and serviced through Comenity Bank and Bread Financial. The Complaint alleges that, on June 23, 2022, Comenity’s systems experience a customer service outage, resulting in cardholders’ inability to access their accounts, obtain information, or make payments. Defendants blamed the system outage on a “planned system update” that caused their “service channels and other capabilities to go out from time to time.” Defendants did not notify customers in advance of this system update, and as of the date of the filing, have yet to fix the system outage to restore customer access to their accounts. Despite Defendants’ assurances that customers could access their accounts or make payments through other means, customers complain that they are unable to connect with Defendants through their customer service channels, and the alternate payment system Defendants recommend customers use during the outage is not functioning properly. As a result, consumers are unable to access or use their credit card accounts, have incurred unreimbursed late fees, and may have negatively impacted credit scores due to untimely payments. Some customers even report having their accounts closed by Comenity without having requested Comenity do so. Plaintiffs bring claims on behalf of a nationwide class of similarly situated customers, as well as on behalf of Tennessee, California and Utah state classes. They allege claims against Defendants for breach of contract, conversion, negligence, and violation of California and Utah state consumer protection laws. The case is filed in the Southern District of Ohio and is captioned Crisp v. Comenity Capital Bank, et al., No. 2:22-cv-02925 (S.D. Ohio).

Attorneys for this case:

Benjamin F. Johns
Samantha E. Holbrook