SALT LAKE CITY, UTAH -- If you (For some retarded reason, i.e. you are just a contrary person, or you work for one of these financial institutions...) do not agree with what I say about the devious practices of Discover Card, below, go read what this organizations says, about what are seemingly illegal practices, done in broad daylight...http://www.bcsalliance.com/x_creditcardtricks3.html
My name is Thomas Anderson and I want to start out by saying no matter what your personal opinion, Discover Financial Services is essentially a white collar terrorist organization, and they are committing acts of financial terrorism against millions of decent, responsible, hardworking, respectful, reasonable American citizens everyday in broad daylight. These are much more than acts of financial terrorism though as they force people to lose their homes, to go without food, to not provide for their children, to postpone basic and/or urgent medical care, because Discover Financial Services has devised a system (And it is not very complicated to do what they do, and see how they do it) whereby they saddle a consumer with a debt that they cannot pay off.
Some people will read this and respond as a minority of people have responded to my many other post all over the Internet and say stuff like: "You should be more responsible", "You shouldn't have gotten the card", "You borrowed the money, just pay your bill". I do not know if these people are just being contrary, playing devils advocate or actually work for financial institutions and are out there representing the other side. To people who say I should be responsible, I have paid every other bill I have ever had, in life, in full and on time, with NO ISSUES - So why not Discover? I have always paid my rent, my car insurance, my car payment, my utilities, my phone bill, my Internet bill, and all other bills on time and in full, why not Discover, curious isn't it?
The answer is that I actually have paid my Discover Card bill. I have a credit limit of approximately $5,000 dollars, granted, I have borrowed this money from Discover over the 10 years I have held the card, but I have also paid the amount back in full at least 6 times (Yes, $30,000 FOR AN INITIAL $5,000 LOAN, and they’re not done yet), but that is not good enough for Discover Card - you see with Discover you don't simply borrow money and pay it back at a reasonable rate, this companies gets its claws in you and will not let go, until you have paid at least $50,000 for a $5,000 loan. They'll get you with late fees, they'll raise your interest rate, and they'll get you with late fees by **Moving your payment due date around (Without notification), and then adjusting your minimum payment due (Without notification).
To the people who say, "You shouldn't have got the card", that would be like telling the 99% of Americans in debt to financial institutions, "You shouldn't have got a college loan, it's your fault", or "You shouldn't have got sick and got that medical debt" or "You shouldn't have got upside down in your mortgage", but No One got into debt on their own, or by playing by reasonable rules. The 99% of Americans who have been victimized by financial institutions have been just that, victimized, terrorized, lied to, cheated, robbed, swindled. A crime, many crimes have been committed, in broad day light but nothing is done because it is white collar crime, and many, if not all of these companies have bought political protection, like people used to buy protection from the mafia. No I got a Discover Card with an initial contract at a low interest rate, and like many consumers, Discover Card found a way to more than double my interest rate once I charged money on the card.
I was one of the unfortunate, innocent, naive people who was solicited by Discover Card as a college student. This practice (Of soliciting to college students) was recently banned, unfortunately I cannot be grandfathered into the ban. I was a college student, it was over 10 years ago, and like many college students I needed a little help making ends meet, I did not (AS SOME COLDHEARTED PEOPLE OUT THERE LIKE TO SAY ) splurge on frivolous items, like a big screen TV, or a game system, or a ping-pong table. I, like many Americans saddled with credit card debt, used my card to simply buy food, to eat. I do not buy frivolous things. I am a very responsible consumer.
1. Discover Financial Services - offers consumers one thing and then when they have you out there holding one of their cards and using it, they alter your contract. And this is something - THAT HAS TO BE ILLEGAL - And I have only seen this with Discover Card. With any other contract I have ever been a part of I not only had to read and agree to terms, but I had to sign and initial the contract and is changes were made they had to be read and initialed. ***With Discover Financial Services they have created their own laws, they have decided that if they bury contract changes in a letter, they supposedly mailed to you (Where is the proof I actually received the letter?) and mind you they will bombard you with letters, and NO ONE reads those letters and all the small print, ***But this is the important point, whether you got the letter or not, YOU AGREE TO CHANGES IN YOUR CONTRACT - BY SIMPLY CONTINUING TO USE THE CARD - So you don't sign anything, you don't acknowledge anything, you agree by buying gas, or some groceries at the store. Apparently the Credit Card companies have invented their own contract law rules. Who needs lawyers?
2. When Discover Financial Services penalizes you, it is never a 1 penalty situation. Let's say I am late with my phone, insurance, or electric bill - I pay the bill and a late fee (1 reasonable penalty for one transgression). With Discover, not so simple, they are in the "Double Jeopardy" business. You will be assessed a late fee (Penalty 1). This late fee will be added to your balance, which will cause your monthly minimum payment to increase (Penalty 2) and then they will, of course, double your interest rate (Penalty 3 - if your rate was 13%, now it will be 26%) and Discover Card makes a killing, literally and figuratively, white collar terrorism, greed, how much is too much. In fact I wonder how many people Discover has directly led to suicide because they put them in a debt that was impossible to escape, and the people saw no way out, which is exactly how Discover Financial Services, constructs their contracts, it's part of their business strategy, get a hardworking, respectful, responsible middle or lower class American in debt and keep them there at any cost - even when it means their daily practice of breaking (And apparently creating) the law.
3. Most recently Discover Financial Services decided to change (Without notice) all of their customers payment due dates. Again I have to think this is inherently against the law, as Verizon doesn't randomly change my payment due date, my electric bill is always due on a certain day as is my car payment, my rent, my car insurance, my internet bill, et cetera...but Discover decided to change my payment due date. This led to me (As I am sure millions of other Americans) being late on my payment (Oh Wow! LOOK, instant revenue for Discover Financial Services) - as soon as I and I assume millions of other Americans went late on our payments via Discovers latest scheme, they generated 100's of millions of dollars in late fees...
They hit me with late fees, and, but - here is the genius of it ***I have always paid well above the minimum monthly payment due - say my minimum monthly payment due is $70 I was consistently paying $100 - Unfortunately (Guess who else knew this?! Discover - THIS IS HOW WE ARE ALL PLAYING A RIGGED GAME!!!) so I went late on my payment, because Discover decided to change my payment due date, without notifying me of the change, then they hit me with late fees (Keep paying attention this gets amusing), they folded the late fees into my balance, which increased my monthly minimum payment due - and here is the kicker - my monthly minimum payment didn't go up $10, it didn't go up $20, it didn't even go up $30 (To $100 from $70) it went up $43, because Discover has my payment history right in front of them, and if it only went up $30, they wouldn't be able to catch me with late fees again, when I went in to pay my monthly minimum payment and like most responsible consumers paid over the minimum ($70 and I was paying a $100), but it wasn't $70, and CONVENIENTLY it was OVER $100, because they KNEW I would pay $100, and they knew they DO NOT, and DID NOT adequately inform me or any consumer of these changes, in payment due dates, raises in interest rates, raises in monthly minimum payments, et cetera...so they got me again...late fee, after late fee, because I was not adequately notified, and they raised my monthly minimum payment to just over what they knew I had a history of paying.
***Another cute problem here, I continued to make a monthly payment, on time to Discover Card, of $100, having not been informed of the change in minimum payment, but it is not enough to make a payment to Discover, if you do not make the minimum payment, you are once again penalized for - Not making a payment, Ah! But I did make a payment, and shouldn't it even be my choice, as a consumer, to make a smaller payment, as long as I am paying on my bill every month?!
4. Finally, I have informed Discover Card that I am launching an all out campaign against them, via the BBB (Which I am starting to think has been bought off by big business), the FTC, The American Civil Liberties (Because I think the financial institutions inherently violate civil liberties, and generally a person’s pursuit of liberty, freedom and happiness) my States Attorney General’s office (In Georgia where I live and was the initial crime took place), and also with The States Attorney General’s Office in Utah and Delaware where this company runs it's criminal Enterprise (I am also going to talk to an attorney about bringing charges against Discover Financial Services under the RICO statute, as this is a criminal, racketeering, organization operating across state lines) I am also out here filing complaints all over the internet at the many internet complaint boards, via Facebook and Twitter.
I informed Discover of these intentions and now they are harassing me. Specifically, now they will not correctly receive a payment from me. I just paid my October payment, over the monthly minimum, of course, on time, of course, REMEMBER I AM OTHERWISE A 100% RESPONSIBLE CONSUMER (Except, apparently in my interactions with this illegal, fraudulent company) But...Discover promptly sent me an e-mail on Monday saying I missed my payment again. When I contacted them, they said the e-mail was incorrect, and that I had made my payment in time and in full, so I asked them to send me an apology and an e-mail containing the correction (Correct info) and was informed that they could not send that via e-mail, they would have to send that via conventional mail. THAT'S RIGHT they will send you incorrect info through e-mail, but the correct info, can't do it.
One more interesting/amusing thing - Discover Financial Services informs me that they do not have a complaint department?! What decent sized business doesn't have a complaint department? I assume the Discover Card complaint department was so overwhelmed the company gave up trying to operate one, and they certainly do not care about customer complaints and this is one glaring sign of their disregard for customer service.
My Desired Outcome:
I have said this to Discover Card numerous times. I simply want Discover to recognize that they have an extremely dissatisfied, angry, disgruntled, activist customer out here, that is much more of a liability to them than I could ever be an asset, ***And I want them to forgive my remaining balance (Approximately $3,500) and send me a letter officially ending my relationship with their company.
Problem: I am extremely dissatisfied with this company.
Solution: We both go our separate ways.
That simple. It is like how every now and then a restaurant has to comp a meal. Well Discover Financial Services are going to have to comp my bill. I must reiterate that I am not trying to weasel out of paying my bill. The fact I have already paid my bill 10 times over.
While Discover Financial Services tried to ignore this situation I will be out here fighting via every avenue imaginable until I find satisfaction and justice.
In closing Discover Financial Services is a White Collar Terrorist organization operating with impunity in The United States. History will look back on them as the criminals they are, and see the acts they have committed for the depravity, greed, ruthlessness, lawlessness, and as the treason that they are.
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Pre-Approval is a Scam!!!
Posted by Antonio on 2011-03-26
Discover just sent out a mass mailing to many prospective clients telling them that they have been 'pre-approved' for 12 months of interest free. The mailing sent a certificate of pre-approval and said that you can go online to mydiscover.com for an instant approval. I went, completed the information, and waited to receive my 'online response'. Instead, the site directed me to sign up for 'free trials' for protecting my identify and credit checks. It did NOT give an option to 'exit' this information. I called the number on the response and the agent told me that I was denied credit with discover. I asked her 'why' I received a 'pre-approval' and why I didn't get my 'online response' as indicated in the letter. She told me that Discover obtain my information from a Major Credit Bureau which indicated I met the criteria discover was looking for in a customer, however, she said that after running my credit they found that I did 'NOT' meet the criteria they were interest in for a customer. I told the representative that I will take my $250,000 household income elsewhere and that I will 'never' be interested in an account with discover since I do not meet their criteria. My family has a good payment history and we will stick with our CitiBank, American Express, and HSBC cards. I asked her to 'remove' my name from any future offers that that I do NOT want to ever receive a card from them. I also told her that they need to fix their website to now try to 'trick' a 'rejected' client from signing up for something an offer they have when that client hasn't even been approved by them. I feel this is VERY SNEAKY' on their part and we should have laws against this type of marketing!!!
My two cents: Do not do business with discover! They are very selective on who they want as a client and try to trick those rejected for credit into signing up for something thinking they have been approved!
Have a nice day all!
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I Hope Discover Card Is Wearing Protection As It Screws So Many Americans
Posted by Tom on 2009-09-28
WILMINGTON, DELAWARE -- Fellow Hardworking American Citizens,
DO NOT UNDER ANY CIRCUMSTANCES GET A DISCOVER CARD!!!!!!!!!
(Have a bake sale, a car wash, sell stuff on eBay, but don't get screwed by a credit card company, like I am gettting screwed (BUT NOW FIGHTING BACK)
...DON'T GET ANY CREDIT CARD FOR THAT MATTER. I KNOW YOU HAVE HEARD THIS BEFORE, BUT IT CAN'T HURT TO HEAR IT ONE MORE TIME BECAUSE IT IS THAT IMPORTANT, NOW MORE THAN EVER, WITH THESE CREDIT CARD COMPANIES AND THEIR BANK CRONIES TEAMING UP WITH WASHINGTON TO BUTT SCREW AMERICA TILL WE SUBMIT OR I GUESS FIGHT BACK LIKE I AM DOING AND YOU SHOULD TO, ONE AT A TIME, WE CAN FIX THIS, AND THAT'S DEMOCRACY...
My story or a rough cut of a letter that is truly still a work in progress is below, it is being sent to discover, craft your own letter, fight the power, no more 28% interest, no more debts that last 20 years because they are specially formulated to keep you in debt, based on the companies knowing your payment history that is what you are capable of, and hitting you with fees or an interest rate, to keep you in debt, it is IN DISCOVER CARDS BEST INTEREST FOR YOU TO BE SUFFOCATED WITH DEBT YOUR ENTIRE LIFE, no more!!!!make a stand, the time to fight is now...complain on the internet, post your stories, rants, complaints, even if they are rough like mine, you can come back and hone them up later...also file complaints with the Better Business Bureau...et cetera...more below...
My name is Tom Anderson and I am submitting this formal complaint letter to Discover Card. I am a very dissatisfied customer and will also be submitting this letter with adjustments made per the audience to the Better Business Bureau, City, State and Federal business regulatory commissions, consumer advocacy groups, my local politicians where I first became a Discover card holder, and to the politicians where I currently reside, local, State and Federal. In addition I will wage an all out campaign against Discover Card and their unscrupulous practices via the internet. By any means necessary. I will give Discover Card 7 days from my mailing of this letter to address this situation, I will be willing to negotiate, initially, but in the past when I have battled capitalistic, corrupt institutions like Discover Card I have found they do not work with me until they see the full barrage one motivated consumer can wreak upon their business.
I have held a Discover card for over 9 years; I have 99% of the time paid my bill, in full on time. I have made a lot of money for your company. That is over.
Problem # 1
My credit limit is at roughly $5000, you loaned me $5000, how many times do you think I have paid you $5000, for the privilege of that initial loan, and how many more times does Discover Card expect me to pay another, and another $5000 on that initial loan you made to me years ago. Other consumers may pay, and pay, but I am standing up and telling you, you made your money off of me and we are through. I have not even used my card for almost 2 years only made payments and their that debt is unmovable...and not even just the minimum payments, we're talkng 300 dollars here, 500 this month, 150 another month...and the debt stays the same...
Problem # 2 Closely tied into Problem #1
Discover Card has figured out a way based on consumers average payments, interest rate, credit limit et cetera to keep a consumer constantly and permanently in debt. We have all heard the statistics of how long it would take most consumers to logically and reasonably pay off their credit card debt. We have also heard of how many hard working, good, decent Americans are buried in your credit card debt. Enoughs, enough.
The real question is, do you settle with me, or do you allow me to begin my campaign to encourage all consumers to fight and push, and push and litigate, and default, until your company collapses.
Problem # 3
You have consumers agree to changes in contracts, not by signing or even reading (Witnessing) the change but simply by continuing to use their card. So you sell a consumer a Credit Card via an awesome 0%, no payments, incentives, cash back, sales pitch, then mail about thirty offers, junk mail, to the consumers house over the next year but one of those envelopes contains addendums to the original contract, like if you miss one payment not only will you be assessed a late fee (Double Jeopardy Punished twice for the same offense), but your interest rate doubles. How about a late fee or double someones interest, rate, or how about
hey I made my payment, for whatever reason it was a little late, people have logical reasons for being late in life, and so all is forgiven you still get your money and you are still getting 10-13 percent interest on your money, BUT that's not good enough for the fine people at Discover Card, NO, how about my money and 13 percent interest, and a late fee, nope that's not good enough either. Double the interest rate too.
No consumer in their right mind would or for that matter, it turns out, ever did agree to this clause. That clause isn't how Discover Card gets customers. You get em with a beautiful offer. Then send out an addendum to their contract. I would be willing to fight this in court on the grounds that, YES, FOR A CONTRACT TO BE VALID BOTH PARTIES HAVE TO READ, AGREE TO AND SIGN IT. For that matter I might just say that I am not sure I ever signed an agreement with Discover Card, and maybe many consumers didn't. I don't know if I signed my initial contract, it would be easy to find out, but I know I never signed any addendums, concerning raising my interest rate for late payments.
The question is, do I take legal action action against Discover or do I encourage thousands, no millions of consumers to take action, involving many lawyers, in a class action lawsuit against Discover on the validity of contracts, this is just one point among many that could dissolve your and other credit institutions in an instant if this goes to court.
Problem # 4 - And in Closing
I will not pay my Discover Card bill, not now, not ever. Like so many other hard working Americans. Discover card HAS constructed a system to keep consumers in debt. You and other credit lending institutions are unscrupulous. The time for change is NOW. You crossed the wrong guy in this consumer. I will negotiate with you now (Maybe) or within 7 days of you receipt of this letter, but then I pull no punches, and settle for no less than the bankruptcy and collapse of your company, via consumer education, spun into individuals fighting Discover card, turning into class action lawsuits all over the country concerning the validity of contracts and other unfair practices, and turning over accounts and bills concerning overcharges, re-adjustment of interest paid, refunds, refunds, refunds, collapse.
I hope to hear from Discover Card representative soon concerning this issue, if not.
One more thing...recently I made a payment on my card at Sears...Discover card called me a month latter and said I owed them a 2 payments, and a late fee, and they are going to raise (Double) my interest rate, because that's what they do if you miss one payment...well, this is because they didn't get the payment I made...computer error...people error, don't know yet, it's under investigation, just telling consumers this because all Discover Card holders who have ever been assesed a late fee, or had their interest rates increased, should immediately, don't delay, call or email Discover and demand an audit/investigation of your account, it could be they made a mistake, and didn't get your payment, have them turn over the books on your account, before you ever let them charge you a latge fee or raise your interest rate.
Thank You for reading...
If we all stand up to this we can beat it...Democracy?
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28% interest rates
Posted by Jim on 2009-07-03
How can a company this size go BROKE? Ask for bailout money and then charge the American people 25 to 35 % interest on their cards. Its sad but more so SICK to take our money (bailout) and then let us use it at 28% interest..The government should have let them go and just disappear.. the CEO should have been fired and all of the board members with him.
Discover credit card company seeks a piece of the bailout pie
by Malia Spencer
Jan 20, 2009
The Riverwoods-based issuer of the Discover credit card is trying to tap into more than a billion dollars in federal funds by virtue of its imminent transition to a bank holding company. But Discover Financial Services LLC insists that this is no bailout, for it remains healthy and is merely looking to boost its already strong capital.
Discover Financial already has been approved by the Federal Reserve Board as a bank holding company and has received preliminary approval to participate in the U.S. Treasuryâs Capital Purchase Program, which was launched in October by the government as a way to encourage financial institutions to build capital and in turn make loans to businesses and consumers.
According to Securities and Exchange Commission filings, Discover is seeking to sell to the Treasury shares of preferred stock and warrants to purchase shares of common stock for an aggregate price of about $1.2 billion.
The preferred stock would pay a cumulative dividend of 5 percent annually for the first five years and then jump to a 9 percent annual rate.
Becoming a bank holding company not only allows Discover to apply for the federal funds, it opens up new business possibilities. A bank holding company may own more than one kind of bank, noted Jon Drummond, senior manager of corporate public relations. The company already owns two subsidiary banks in Delaware, Discover Bank and Bank of New Castle. Now it wants to acquire more consumer and business deposits, and, Drummond observed, it could purchase more banks as a way to accomplish that. But he cautioned that the company has not made any statements on what it is planning to do.
However, Michael Kon, an analyst at Morningstar Inc., said he doesnât think the company is in the market to purchase a bank because growth in deposits could be achieved through its existing banks, utilizing its strong online platform.
The Riverwoods company primarily operates as a credit card issuer, but also services third-party payments and offers other loan products. In 2008 the company had net income of $927.8 million, or $1.92 per diluted share, up from $588.6 million, or $1.23 per diluted share, in 2007. The 2008 results included a $135.2 million loss from discontinued operations. Discover sold off Goldfish, a U. K. credit card business, to Barclays Bank PLC in March.
Discover takes deposits at its banks including money market accounts and certificates of deposit. Additionally, the company offers installment loans such as personal and student loans. At the close of 2008 it had $49.7 billion in loans, up 4.9 percent from $47.4 billion in 2007.
Revenue generated from bank deposits are used to finance Discover's credit card and installment loan businesses. At the close of the fourth quarter, which ended Nov. 30, the company had deposits of $28.5 billion. Additional funding for business activities comes from the process of asset securitization, according to the company.
Though profit for full year 2008 was up from 2007 it is still below the level of 2006, which saw net income of $1.1 billion, or $2.26 per diluted share.
Most analysts who follow Discover are advising investors to buy or hold the stock, although there are also two sell ratings. The stock closed Tuesday at $7.01, down 95 cents or 11.9 percent. Financial stocks were hit hard by investor reaction to the government's revised bank bailout plan.
Discover's stock 52 week high was $19.87, its low $6.59.
Kon of Morningstar says the stock has a fair value of $30. He recommends investors consider buying shares at $15 and consider selling them at $60. The stock has Morningstarâs highest rating of five stars.
The company is âmaking the right decisions and I think they are going to perform well once the economy improves,â Kon said in a phone interview.
âThey made good decisions before this downturn,â he noted.
Among those good decisions, Kon said, was staying away from certain geographic areas, such as California and Florida, which have seen the worst of the housing crisis.
Nevertheless, its loan losses increased last year, and Discover greatly augmented its loss reserve.
By the end of 2008 the reserve increased to $1.4 billion, up 81 percent from $759.9 million a year earlier. Net charge-offs for 2008 totaled $981 million, up 44 percent from $677.9 million in 2007.
âThe next year will probably see continued increase in loan losses,â Kon said. âThe environment is deteriorating and they are facing a lot of economic head winds. Credit card volumes are under pressure with the slump in consumer spending.â
However, the companyâs debit card portfolio should remain strong as debit volumes are growing faster than credit cards, he said.
Discoverâs participation in the federal Capital Purchase Program will strengthen the companyâs capital position, officials said, while pointing to the company's already-strong balance sheets.
According to the companyâs SEC filing, Discover Bank and Bank of New Castle exceed the capital requirements of the Federal Deposit Insurance Corp.
On Nov. 30 Discover Bank had total capital to risk weighted assets of $4.3 billion, or a 12.9 percent ratio, in excess of the required $2.7 billion or 8 percent. The smaller Bank of New Castle had $15.5 million, or more than 400 percent compared with the required $279,000, or 8 percent.
The parent company's year-end stockholder equity was $5.9 billion, or 15 percent of average total assets.
The added capital from federal funds can be used to replace the companyâs previous dependence on the securitization market, which has stalled in the current credit crisis.
Applying for government money makes good business sense in a difficult market, according to some analysts.
Christopher Brendler, of Stifel Nicolaus, said Discover is a prime candidate for government support.
âIt doesnât hurt to have extra capital on hand to handle losses,â he said.
Other credit card companies, such as Capital One Financial Corp. and American Express Co., have already become bank holding companies, Brendler said.
Shifting to a bank holding company is not expected to alter the companyâs operations, Discoverâs Drummond said, but will merely bring in different regulations and bring the company under the oversight of the Federal Reserve.
The Chicago Federal Reserve Bank, which oversees the Midwest seventh district, will supervise Discover as a bank holding company. The Chicago Fed already oversees 975 bank holding companies, said Doug Tillett, vice president of public affairs.
Chicago Fed officials look at a companyâs risk management, the board and senior management oversight and policies and procedures. Federal regulators will also monitor the holding companyâs financials such as asset quality, capital, liquidity and earnings, Tillett said.
Receipt of Capital Purchase Program funds will not be the first infusion of federal dollars for the company. Discover Bank has already been to the Fedâs discount window and borrowed $1 billion over the course of two visits, once in November and once in December.
However, analysts at Fitch Ratings Ltd. are more reserved in their opinions of a non-banking financial firmâs converting to a bank holding company, especially because, they say, stricter Fed regulations may be coming.
âFitch does not view BHC status as a panacea for the current economic and credit cycle,â the firm reported recently. âWhile BHC status may provide additional protections in the current environment such as capital boosts and debt guarantees, these firms will remain challenged by weakening economic conditions and business model changes.â
Discover (DFS) to receive bailout funds
Posted Jan 16th 2009 12:48PM by Brent Archer
Filed under: Good news, Industry, Options, Technical Analysis, Financial Crisis
Discover Financial Services (NYSE: DFS - option chain) shares have moved higher today after the company announced it has received approval for a $1.2 billion in funds under the government's financial sector bailout package. DFS plans to become a bank holding and a financial holding company in order to receive the funds. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DFS.
DFS opened this morning at $7.83. So far today the stock has hit a low of $7.61 and a high of $8.10. As of 11:55, DFS is trading at $7.67, up 6 cents (0.8%). The chart for DFS looks bullish and S&P gives DFS a positive 4 STARS (out of 5) buy ranking.
For a bullish hedged play on this stock, I would consider a February bull-put credit spread below the $5 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just five weeks as long as DFS is above $5 at February expiration. Discover would have to fall by more than 34% before we would start to lose money. Learn more about this type of trade here.
DFS hasn't been below $5 at all in the past year and has shown support around $7.40 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DFS.
Tags: bailout, DFS, Discover Financial Services, DiscoverFinancialServices, Investors Observer, InvestorsObserver, options
SO THIS IS WHAT YOU CALL SICK>>>JUST A SUGGESTION DON'T SUPPORT A SICK COMPANY WITH NO INTEREST OF YOURS CONSIDERED.
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Unfair Charging of Fees
Posted by William on 2010-02-17
SALT LAKE CITY, UTAH -- I have been a Discover card holder since 2001 while enlisted in the United States Air Force.
They have been quite helpful in the past, until a slew of recent events involving Discover Card and there account managers have put my relationship with them in serious jeopardy. I understand I am among thousands that have had issues with them and I know that my problem is no more important than the next person. Discover card has led me on, they have called me a liar, and they have charged close to $200 dollars to my account in which they refuse to refund.
Allow me to elaborate..
Back in Sept. 2009 my vehicle was broken into. I lost close to $3000 in personal belongings as well as my personal banking information. I called the police and opened an investigation as well as received a police report. A couple days later I closed my bank account and opened a new one. I had my Discover Card account set up to debit money monthly out of my account. After closing my bank account I started to pay Discover Card through my new account manually because I knew they could no longer be paid through my old one. For about 4-5 months I paid Discover Card $50 a month until I got my life back together. I was never late on payments during this time. Around mid to late December I realized my account balance was going up not down. I knew something was wrong because I was paying almost $20 over the minimum payment. What I found out was that Discover Card was accepting my $50 payment and then charging me a $39 returned Check fee because they were attempting to debit my closed bank account. I called to explain to them what was happening and they handed me off to several different people who were all unwilling and seemed in no way interested in helping me. I explained that this was a screw up and that my records show that I have been paying monthly and that they were still trying to debit an account that was closed. I simply asked that they refund the money from the Return Check charges. They said for me to pay $90 dollars and to call back once I did. So on the 8th of January I paid as requested and about a week later I called back. I explained that I had done what I was asked; now I would like to get my money refunded. They quickly started to hand me off to different account managers that all said they could not help me. During all this they made it very clear that they did not believe my story. I was pretty much called a liar. I have a police report and I can get any information they require from the bank but they were not interested. They took my monthly payment then proceeded to Charge me a $39 fee for returned check because they could. In no way did they attempt to call or inform me of any problem. I was treated very disrespectfully! I was called a liar, and after 2 hours of phone calls and a letter to Discover Card they refuse to help. They have absolutely zero integrity as a financial institution and they treat their clients/patrons like dogs.
I was given the address to their complaint department because they donât want to take phone calls from angry patrons to whom they rip off. In my letter I again explained to them that all I want are my fees refunded to my account. They sent me a letter back saying that they received my letter and that they are missing information, they wanted me to call back so they can get the required information to complete their investigation. However, upon calling they informed me that the only reason they wanted me to call is so that they could tell me that they will not be assisting me with my problem. So again they misled me to believe they were willing to help and again they showed there true colors.
The only thing that will resolve this issue is a refund of all fees taken from my account from Sept, 2009 â Feb. 2010.
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Misled by Cardmember services
Posted by Frank on 2009-11-12
Let me preface my review by stating that until this incident, I had been an advocate of the Discover card. I was laid off in February of this year and hadn't secured employment. In April, I contacted Discover regarding my account to see if there was any assistance they could offer regarding my monthly payment. The representative I spoke to was quite helpful; or so I thought at the time, and advised me she could place a 'freeze' on my account, which would not allow me to use my card for 6 months, and pay a lower interest rate so more of my monthly payment would go towards the principle. Since I am a firm believer that if something sounds to good to be true, it usually is, I asked and verified several times that if I did this, after the six month period the card would then automatically be reinstated without penalty. I ended the phone call on this premise.
Time past and in September I thankfully acquired employment. I contacted Discover to let them know I no longer needed the account to be frozen and was advised by the representative to just ride out the six months at the lower rate. I was again reassured the account would be reinstated at the end of the six month period.
I waited until November which was the end of what I thought was the six month period and contacted Discover regarding to make sure my account was reinstated. I was advised I had to wait until November 30th exactly because that would make the exact six month mark. I did so. When I called Discover back, much to my dismay, I was told they would not be reinstating my account and it would remain as suspended. I went back and forth with the representative on the phone who advised me during the time my account was frozen, policy and procedure had changed and they reviewed accounts and individuals credit reports prior to reinstating them. The representative stated I had too much outstanding debt and Discover would not reinstate my card at this juncture in time. All this despite the fact that I had no issues paying the same monthly payment I had always paid, had never been late on a payment, and had an account in good standing with them for close to ten years. I requested to speak to a supervisor because it is my understanding that if a new policy or procedure is set forth, it cannot be backdated or applied to issues that existed prior to the implementation of the policy. Also, I was never told of any review or redetermination at the inception of my agreement with the initial representative. I was told the supervisor was out to lunch and I would have to wait up to 24 hours for a call back. I did so, and when the supervisor called me back I simply got a reiteration of what the representative had said. No consideration, no assistance, nothing. Even when I stated I was seriously considering either closing my account, or seeking legal assistance, my statement was met with indifference.
I still don't understand how they can implement and apply a new policy without notifying their customers. As I stated to both the representative and the supervisor, if I would have been told at the beginning that my account was being suspended and I would have to be subject to a review at the end of the period to determine if my account could be reinstated, I would have NEVER agreed to freeze my account as I was told initially.
It is a shame that in today's society, we are so dependent on credit, credit rating, credit worthiness. We are gravitating more towards a money-less society each day without realizing the implications it brings with it. I'm not sure how; if at all, this review will help anyone. All I can say is wary, be very wary of credit card companies. These are my three cents.
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Will Not Help
Posted by M on 2013-02-21
Discover card will not work out a reduced payment plan. Over the last few years I had major surgery, was out of work for 8 months, and had physical restrictions for one year at work. The company I work for was later sold and a 5 year pay freeze has occurred with no future increase. At this point I joined a debt settlement law group to work with paying off my credit cards.
Discover refuses to negotiate with them or even me. I was put into collections soon as the debt settlement group contacted them. Its an endless circle with Discover. They will not accept or negotiate a lump sum payment (that is available at this time). They will not even contact me to negotiate. My other credit cards are working with the program.
I am an older person with mild disabilities - where I still work but loose about 4 intermediate days unpaid a month. Help!!!
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Discover Charged My Account Without Permission
Posted by Jeff on 2012-12-31
I had a auto ship set up with a company, that's another complaint, but Discover had my account set up for an auto ship. So I'm having trouble cancelling the auto ship. So, I canceled the card number and have a new acct. number set with Discover. this is at least six before the next $277. Auto ship is to be sent out, all good right, no acct. number no auto ship.
I heard from Discover in about 10 days of getting my new number, with a letter in the mail saying that I will need to contact any companies that I my have automatic payments or companies that I may have an auto ship set up with. It said, so as long as I do not give this company(Visalus) my new account number there will be no more $277 auto ship because they're not going to send it out without being paid first. But Discover let them charge to my new acct. number without my permission.
So, the product comes, Discover charges me, I send this product back the next day un-opened, but after three months of investigation by brilliant people at Discover, they say the shipment was justified and I owe the Visalus company $277.for something that should never have been charged to my acct. Plus, I sent the product back un-opened, and yes I will cancel my Discover card, as much as these people say they care, they really don't.
Jeff from South Dakota
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Posted by Susan on 2012-10-16
SALT LAKE CITY, UTAH -- We took out a loan with Citibank for my son's freshman year of college. My son ended up dropping out for medical reasons. We set auto payment through Citibank and first payment was late. They reported us to credit union. Shortly after Citi sold loans to Discover Bank. We made our payments on time and in July of 2012, we decided to pay down the loan. Bill said amount to pay and we spoke to an agent to get full amount. We made the total payment we understood to be the payout amount. Now in October we started getting numerous calls from an 800 number, which everyone knows are either sales calls or someone annoying. They finally left a message and I called them back. Evidently we owed them $270 more because interest was continuing to rack until they received our full payment. No one left a message or sent a bill and we thought this loan was paid. The harassment at all hours of the day and night was relentless and unbearable. We felt that it was not fair to come after us for such a small amount when we were not told about it until know. We said we would not pay it so the operator threatened us with credit report and that the so- called account would continue to accrue interest damaging our credit and that they would continue to make phone calls until we paid this small amount.
These banks sell loans to each other and you have no choice in the matter. The operators at Discover are trained to harass, coerce and say anything to get you to pay what they say you owe. This experience was a nightmare and dealing with them was like dealing with automated airheads who say they will do an investigation of all taped phone calls only for another uniformed operator to call back within the hour. DO NOT use Discover for any banking, loans or any financial transactions of any kind. They are incompetent idiots and worse the poor people who they train to harass you have no power to help you. Additionally, no supervisors were ever available. I highly recommend against getting involved with this institution, or do it at your own peril. HORRIBLE!!!!!!!
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Posted by Vaun on 2012-07-23
SALT LKE CITY, UTAH -- Discover Card Legal Dept.
P. O Box 30421
Salt Lake City Utah 84130-0421
Attention: Supervisory of phone negotiations.
This letter is to inform you of questionable practices of phone negotiations which have possibly resulted in the violation of truth.
An agreement was reached in a telephone negotiation for debt settlement on the account of myself (the client). In that agreement I (the client) agreed to direct electronic payment which has been in effect for at over a period of years to this point. In addition several additional payments have been made outside of the agreement to assist in a rapid settlement of account.
Upon receiving statements with an interest rate of 28.99 % I (the client) phoned several times to negotiate a no interest applied rate to decrease the payoff time of the debt. I (the client) was informed this would beonly possible based on past good faith practices (PRACTICE PROVIDED) and as myself (the client)would be receiving an adjustment to interest on further statements. This was stated in conversation with two separate rep’s at Discover and presumably approved.
This was a proposal offered in original agreement, if good faith payments were applied, a no interest payment plan would be considered.
I (the client)find these practices to be unclear to either your staff or organizational levels of understanding as to authority, to grant conditions or modifications of agreements, all while offering assurances to clients actions are duly noted and applied to account. FRAUDULENT and/or IN-APPROPRIATE
For a considerable amount of time I (the client) am receiving an interest rate posted at 28.99%
I (the client) request or demand by clients rights, that the account be researched for participating rep’s, recorded conversations, call communication logs, notations to account, etc. seeking proof of conversations and actions as promised.
It is expected this matter will be researched and resolved immediately.
I (the client) await your immediate findings as I (the client) believe Finance Center rep’s have violated the truth, of individual authority to negotiate, approve, rectify or modify agreements on these matters.
Letter submitted threetimes NO REPONSES.
This letter forwarded to CA State AT&T Gen Offices and FDIC.
NO HELP NO ANSWERS