Comenity Banks Want Florida to Refund $1.16 Million in Sales Tax

Two Bread Financial Holdings Inc. subsidiaries asked a Florida trial court to refund over $1 million in sales tax they paid the state on bad debts.

Comenity Bank and Comenity Capital Bank offer private label credit cards for retailers that operate in Florida. When customers use the cards at the retailers’ stores, the Comenity banks pay the retailer the purchase price of the goods plus applicable sales tax, which the retailers remit to the state.

• Some customers failed to pay the banks the full amount due on their accounts, and the banks eventually wrote the amounts off as bad debt ...