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Unethical lending practices

Complaint Rating:  87 % with 23 votes
87% 23
Contact information:
Brea, California
United States
I was a KOHL'S customer for over 4 years and never missed a payment whenever there was a balance in my charge card, in fact I never carried a balance. Back in Dec 2007 we made some purchases and put it on the charge card. For whatever reason we misplaced the bill and consequently missed the minimum payment of 15 dlls. The total balance on the charge card was 85 dlls and some cents. I later summited a payment for the total amount and my charge card was down to 0.00 again. I recently order my credit report beacuse I was denied for a personal loan and the reason was "delinquent payments". I have carried a clean credit record for the last 7 years and my credit score was in the mid's 700's. I was shocked to find out that Kohl's has sent those late payments to my credit report and severely hurt my credit history. I will never buy anything from Kohls again and I will discourage everyone from doing so. I do not belive that someone's credit should be damage by been late on a 15 dlls payment. Consumers be aware that KOHLS can ruin your credit history for 1.00... awful company, ungly lending practices...

I will not rest on giving bad publicity to the estore...
Complaint comments Comments (35) Complaint country United States Complaint category Business & Finances


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A  27th of Apr, 2009 by    0 Votes
I had a similar issue. My payment was due on April, I never received an bill in the mail, or email or over the phone stating the payment is due, and I got an alert from credit history monitoring system that a 30 day overdue is posted on my credit history. This is disastrous as I'm in the middle of buying a home and here comes KOHLS ruining it all for me. I contacted them, they have logged an dispute I will see how it goes.
N  21st of May, 2009 by    0 Votes
before you ban kohls, you need to understand that the store is separate from the credit company. chase bank bought out kohls credit a few years ago. you should consider banning chase bank rather than the store. also, no one ever said that you had to use your kohls charge to shop there.
N  21st of May, 2009 by    -2 Votes
When you open a credit account, the issuer does it with the expectation that you will be paying your bills on time. You say, "I do not belive that someone's credit should be damage by been late on a 15 dlls payment.".. but do you think Kohls would have issued you credit if you had told them in advance that you had a nonchalant attitude about paying your bills, and would be late in making your payments?

Please pay your bills, as not paying your bills has a negative effect on our economy. We all need to be a little bit more responsible in our financial dealings. Some banks offer finance classes for high schoolers, maybe you could attend one of those to get up to speed on how to keep track of your obligations from month to month.
D  21st of May, 2009 by    0 Votes
You are right that we should pay our Bills on time, and also correct in saying that the problem is Chase. However, the payment information is sent through Kohls, you log on to Kohl's site to make the payment. So as far as customer is concerned it's all Kohls. In my case, I never received a notification from them that the Bill is due. Never received a snail mail (I had signed for paperless billing). Never received email. Kohls called but never left a voice message. But spoiled my credit history, I cannot get a home loan now. They did call me again after 60 days and I paid the dues along with the late fee within 10 min. Issue here is Kohls failing to notify it's customers, but not failing to notify the credit monitoring companies. You are welcome to use Kohls, but be prepared to be surprised one day or another. Once it happens you can hardly do anything other than coming to these places and venting steam. Do yourself a favor and stay away from Kohl's credit card.
N  14th of Jun, 2009 by    -1 Votes
Again it all comes back to you. You are responsible for your payments. You need to keep track of when the payment is due. You misplaced the bill not Kohl's. How are they to know you put it someplace it wasn't going to be found. Credit card companies send the bill, there is a date on it when the bill is due! They did their job of notifying you when the bill is due, the rest is up to you.
N  14th of Jun, 2009 by    0 Votes
Looks to me that all the guys posting against are being paid by Kohl's further proving my point. Thanks Kohls.
N  14th of Jun, 2009 by    0 Votes
If you doubt me see all the comments by kenadie, dolla, jt12 you guys are talking Kohl's up. I would appreciate if Kohl's puts efforts in addressing the problems rather than covering it up by paying you DA's
D  14th of Jun, 2009 by    +1 Votes
wow. i wish i was being paid by kohls because this would be the easiest job in the world. do you really think your statement is logical. if they didnt care about you why would they bother to pay people to do something like this. get real. you were wrong.
N  15th of Jun, 2009 by    -1 Votes
Why would users go out of the way to condemn complaints about Kohl's. After all this is a complaint's board. I have proof to make my case, where as all I'm getting - hey pay your bills from various "Kohl's Fans"
A  25th of Jun, 2009 by    +1 Votes
Shash, Same thing has happened to me and my credit score has dropped from 775 to 660. I am having sleepless nights and do not know what to do. I have had a spotless credit history and now I am banging my head thinking "why did i even open this account". All this happened when I am just about to buy a house.

Please help ...
A  25th of Jun, 2009 by    +1 Votes
You should report this to the BBB. Also; dispute this with the three credit monitoring agencies (Experian, Equifax and Transunion). In my case Kohl's reported this to only 2 agencies, they did not report it to Transunion. Moreover, after 3 months of paying them off, they still have not updated the balance to the credit reporting agencies. They still show that I owe $133.

The Federal Trade Commission website has a very helpful pamphlet on how to properly go about dispute errors on your credit report. Please note that you can always do this yourself and do not have to pay a service to “fix” your credit history.


Good luck to you, please let me know how it goes, I'm doing the same thing, all this takes time, no smoke so far.
A  19th of Oct, 2009 by    0 Votes
I just had the same thing happent to me for a $5 delinquency. I have a perfect credit history with all my credit card accounts but was late on a $5 payment because I switched to electronic statements and I missed it in all the spam Kohl's send out. But, the bad report didn't show up on my record until the day I called and asked to close my account. I always use cash or debit when making purchases at Kohl's except when I can get an additional discount with the card. Well, it's not much of a savings when I end up paying a $29 fee for late payment on a $51 purchase. Despite my perfect history, Kohl's Credit refused to reverse the report. I don't think that it is a coincidence that the negative report was posted the same day the account was closed. Frankly, I believe that Kohl's Credit inconsistently applies their reporting policy and I am discussing possible action with my attorney.

For all of you who would argue that it is my responsibility to keep track of my charges and pay the bill, I agree. My error was trying to save paper by receiving electronic statements. I would argue, however, that this is not so much about my failure to pay my bill on time (and, oh by the way, I paid dearly in fees for it) but it is about Kohl's Credit inconsistently applying their policy. It appears to me that it is selectively applied, at least in my case.
N  23rd of Oct, 2009 by    +1 Votes
This complaint is silly. You lost your bill, which you're responsible for, which was the cause of this whole mess. You could have called them up, or found one of several ways to check up on how much you owed. Did it not seem strange that you hadn't paid your charge off? While I think the latter part seems a bit ridiculous (on their part), this would have all been avoided if you would have kept track of your bill, however, and you don't seem to take ANY responsibility yourself for enabling the whole mess.

Also, at above, they don't send out any spam (I used to work there, thank GOSH I don't any longer), you signed up for the emails (willingly I might add, as it's never required for anything), and on every email it has a link to disable them being sent. As far as THAT part goes, you could have avoided it, though I agree that it's ludicrous that they would put the charges on as soon as you decided to close the account, and that they're selective on most of their policies.

In my case, I paid the bill online, the site it said that it was accepted, but money hadn't been taken out of my bank even after 3-4 days. Called up the agency, they claimed that no payment was ever made, which seemed to be truthful at the time. About a week later, I got my paycheck to see that the balance I was paying ($54 and some odd cents) were taken out of my checking account, which I assumed was used to pay off my remaining balance.

I checked on my card balance online, and the balance still remains. I'm still being told that the money hadn't been paid, when I have indisputable proof that that EXACT amount was taken out of my account, I've called an attorney about it, but nothing has been set in stone yet.
A  16th of Dec, 2009 by    0 Votes
This is happening to me as we speak. I had perfect credit and am being denied credit and a personal loan. I never received a statement or perhaps threw it away as junk mail. They have wrecked my credit over $28. This once happened several years ago with Macy's and they contacted the credit reporting agencies the day I reported the problem. All three credit reports now say I have a delinquency with Kohl's, although the bill was paid the moment I learned it was outstanding. We're talking $28. I would like to find a lawyer who takes on this type of class action suit. Nothing will happen with an attorney for an individual.
A  16th of Dec, 2009 by    0 Votes
I just filed a complaint against Kohl's with the Federal Trade Commission. I recommend that you do this as well.
The more complaints that are filed, the more an attorney will take an interest in this pattern of abuse. Kohl's has proven itself to be a truly unethical company. https://www.ftccomplaintassistant.gov/
A  25th of Jan, 2010 by    -1 Votes
I have also filed a complaint with the FTC for Kohls unlawful billing procedures. The customer service representative took full responsibility for my “late fees” admitting that it was a mistake made by Kohls for not sending me my statement, and that I had in fact, not signed up for online billing. One week later I received notification that Kohls reported this against my credit and my credit score dropped nearly 75 points.

For all of you supporting Kohls does this sound fair to you? Do some research and you will find HUNDREDS of cases exactly like this where people were never informed of delinquent balances and their credit is negatively impacted. A class action lawsuit is soon to follow and then everyone can be forewarned to NEVER open a credit card with Kohls.
D  24th of Feb, 2010 by    0 Votes
if your light, gas, phone are late you get a late on your credit history also dont forget stores donot own the cards banks do morgan chase owns the cards used at kohls i notice that you made no mentiion that you cotact kohls companies including banks will remove late fees once on a customer who has not ever been late on payments i know this because it happen to me with a phone fee i ask for a supervisor and he was all happy to do it so i have to ask was this the first or was there another occasion or you were so pissed off you didnt bother with it payed the fee and cancelled the acct
A  8th of Apr, 2010 by    0 Votes
Two days ago I received a call from Kohl's telling me that I was 60 days late. I paid the bill in full immediately. Usually, I am the sort of person that pays the bill in the month I purchase, and thus never a need to receive a bill. Unfortunately, I forgot that I had not paid the balance in full and would have, had I received a bill. However, I have been inundated, almost every single day, with advertisement and various offers, yet I never received a bill, not one. I called customer service, and they claim that I have received a bill, however, there is nothing in either my email, or spam, or deleted items. This is an issue, I have NEVER been late. I have worked for one of the major credit reporting agencies and am very familiar with disputing items on one's credit report, disputing will not fix this. A class action suite will fix this. And, for all who have been bombarded with advertisements and have not received a bill, I ask that you stand with me on this one. A paperless society is good for our environment, and that is why I decided to opt out of paper bills, however if their Kohl's billing procedures are inadequate and causing consumers unfavorable reporting, something must be done. I will file a complaint with the Federal Trade Commission, and I encourage all of you who have had billing issues to do the same. The Federal Trade Commission only acts when there are many complaints. I will also file a complaint with the Better Business Bureau, they may be able to help.
A  1st of May, 2010 by    +2 Votes
A person generally has a minimum of 3 accounts (credit cards, utility or services) that are reported to the big three credit monitoring companies. Seven years, is 84 months x 3 accounts =252. Miss or be late on 1-bill in that timeframe and it equals a 99.6% on time payment history. Great job, but you are responsible for missing that one payment. The penalty, is however is outragous, and I would never lose a customer with that type of payment history.

Flip it around. A price check conducted by the Federal Trade Commission of department stores resulted in a error rate of 9.15% or 90.85% accuracy rate. (http://www.ftc.gov/reports/scanner1/scanners.shtm) . The result of these errors led to “hefty fines” by the FTC. Don't worry, staff cuts, benefit reductions, prices increases with take care of that.

Credit Card companies don’t make money on people who pay on time, they need the balances people carry, late fees, inflated intrest rates or any fee they can come up with to make more money. Kohl's has the right and the ability to change companies who act as a credit agency for them if they choose. You would think Kohls would demand that they conduct thier business with the unifying principals Kohl's projects to the communities and customers it serves.
N  1st of May, 2010 by    0 Votes
i see your problem.

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