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Beware of Discover Student Loans
Posted by on
SALT LAKE CITY, UTAH -- Beware of Discover Bank Student Loans. When you apply for and obtain the loan your loan will almost immediately be sold off to Great Lakes Bank and then the trouble begins. As Great Lakes mishandles your paperwork, in my case sending me documents in mail initially then suddenly, without my knowledge, they start sending docs to a 1997 address. This older address I had never used on any form or given to them. Then, without my knowledge they take a student loan currently in deferment several years before student graduation and put it into repayment mode. Then sending items to the 13 year old address they get no response and then wreak havoc on your credit report. When you finally discover what they did you call them and they blame Discover Bank saying they sent them the wrong address! When you call Discover Bank they blame Great Lakes saying they can't be responsible! Neither will take responsibility and you get nowhere. Horrible service, rude on the phone, avoid, avoid, avoid!
     
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clutzycook on 2011-02-07:
When my husband went back to school to finish his degree 2 years ago, we went through the same bank that held his first set of loans (Citi). After he finished school, the loans from his second go-round in school were sold off to the Dept of education which turned them over for management to GreatLakes. To be perfectly honest, I haven't had any trouble with them, but then I do everything electronically.
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Issues with Discover Cards.
Posted by on
I only have been a card member for 1 year with Discover and can understand the negative sentiments coming from card members who have been with the company for 10+ years. That is helping me as well as other prospective card members think twice. Let me tell my story and perhaps people will benefit from the story. (I have other credit cards too: AMEX and BOA.)

Before the issues:
1. Great customer service
2. Great benefits
3. Competitive APR

Now issues has come up (within the past few months)
1. Very rude customer service.
a. I like to talk online through their email secure system and the representative especially the recent one has been rude and quite defensive when I was being very nice and explaining to this gentleman how Discover makes money and how they should treat customers like me with respect. I could if it is so desired to copy and paste the emails back and forth between me and the reps. There is no negotiation even though they say it in the emails. It is either their way or no way.
2. APR
a. They won’t move your APR even if you have perfect credit, to a more “normal” rate even when you type pages of reasons why a customer like me should deserve one. All I ask is for a reduce in APR. that is all. I don’t ask for much but I expect that especially since Discover has a spend centric model and receives money from the TARP. It has been ongoing for months about this topic.
3. Extras
a. Be very careful when you sign up for this credit protection services. I had issues with one of them: credit score protector. I signed up for this service to see my credit score and how it was affected by our awful economy credit limit cuts. So I tried out this service which was decent to start off with. After a few weeks of promises that I would receive the welcome kit in the mail, I decided to cancel it and I did.
They credit me $12.74 out of the $12.95 owed to me for that month. Obviously $.21 was missing. I emailed them asking them about this they said they would look into it. My response was a bit more firm because of the back and forth of having them said they would look into it. I said something like “I was told I would receive a full refund of $12.95 Discover gave me $12.74 I want the other $.21. it is that simple”. It took Discover 3 days from that demand to get my money back. So in total with that credit protector services it took 2 weeks and 10 emails to receive the whole refund back as they promised.

Summation: I am not trying to make your decision for you but if the company that you are using isn’t working for you, you must do something about it. I read about some people saying be nice. Well that is good; however, if you are trying to do everything you can to reason with them in a nice tone and they can't do one thing, unfortunately, it is OK to threaten. I can't see how Discover’s customer service is rated so highly especially if there are a lot of complaints against customer service but more importantly representatives that I recently dealt with when it comes to APR and the extras I mentioned about. If you would like to discuss my issues with Discover please go ahead.

PS. Its been 3 months since I have tried to get the lower APR rate and they just wouldn’t budge. They mentioned to me that “because of the business environment” they cannot do so. There is just one problem with this. They receive money from the TAPR and from the FED window. Yet when customers ask for help they don’t.
     
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Hugh_Jorgen on 2009-12-27:
I have had a Discover card since their beginning and have never had anything but excellent customer service. But then again, I don't try to lecture their employees about how their company makes money and how they are supposed to treat me with respect. You see, I treat them politely and with respect and they return the favor.

As far as the APR, do some checking and you will see that all the major credit card companies are raising rates right now in anticipation of new laws that take effect in February. If they are simply refusing to lower your rate and have not raised it instead, consider yourself fortunate.

Regarding your credit report - you can get one per year free from each of the three reporting agencies. Use this site to get your free copies: https://www.annualcreditreport.com/cra/index.jsp
adam2106 on 2009-12-27:
“I have had a Discover card since their beginning and have never had anything but excellent customer service. But then again, I don't try to lecture their employees about how their company makes money and how they are supposed to treat me with respect. You see, I treat them politely and with respect and they return the favor.”
Yes but unfortunately they do not know what they are talking about. I was just on the phone with a Discover representative who was a manager. They said “we did not receive money from the TARP or the Fed Window”, which is obviously total false because we know they did. They applied for Bank Status as well as received money from the TARP.
“As far as the APR, do some checking and you will see that all the major credit card companies are raising rates right now in anticipation of new laws that take effect in February. If they are simply refusing to lower your rate and have not raised it instead, consider yourself fortunate.”
My current credit cards aren’t its just Discover.
“Regarding your credit report - you can get one per year free from each of the three reporting agencies. Use this site to get your free copies: https://www.annualcreditreport.com/cra/index.jsp”
I just wanted to try that service. I know about that- thanks.
Bill Johnson on 2013-06-17:
They took 1.2 Billion in TARP. . They got themselves labeled a bank in 2008 to get TARP money. Instead of cutting expenses and acting responsibly, they decided to start sending 53 of their employees on trips to Key West twice a year, Las Vegas, Aspen, Miami, New York, Hawaii, etc. every year since. They are called the Local Markets group, and get paid to travel at least once a month to pretend they are putting up Discover stickers! The management knows this is happening, and won't stop it. They are still traveling, partying it up, and doing nothing. Most take a friend or family along, most of them do nothing at all but travel and stay at home getting paid in between trips to lie around. Unreal in this economy! It is criminal! Just this part of the fraud alone is literally millions of dollars per year. The management knows, their HR dept. even claimed they would look into it. Nothing happened, and as of 2013 they are still wasting over 100 million a year to send these people on monthly vacations and getting no return for the taxpayer nor the investors.
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Don't be a Discover Card Victim
Posted by on
I am not a blogger, but this recent event has left me compelled to tell my experience in an effort to hopefully save some others a similarly bad day...

Today (Aug.27)I received a letter from Discover sating that they had reduced my credit limit. The date on the letter was Aug 20, 2009. On the 23rd I had gone online and checked my credit limit before paying for the renewal of my professional license.

After opening the letter, I went online and saw that thankfully I was still under my credit limit. I decided to call and of course the number on the letter was 9-4, so I called the number on the back of my card. I reached the Discover call center in Ohio and spoke with Christopher, who could have cared less about my concerns, gave me the company line and refused to see anything wrong (ethics) and reminded me that they were doing nothing illegal. Having worked 25 years in customer service I was shocked at his lack of any empathy as he told that "in fact you are already over your credit limit", but could not explain why online my balance showed under -he just said pending transactions. I asked to speak with a supervisor and he put me on hold for a long time and came back and said none was available. He said he would ask one to call me, and what would this be in reference to? Hello! Did he hear anything that I said?

No supervisor called so after an hour I called back. Again a callback. This time someone named Robert called about 15 minutes later and did a better, more sophisticated job of telling me "too bad" but only after he tried to pawn me off to another office. No real humanity. Don't these people have a life? Do they think that by reading from the company script they will get some kind of job security? Please, Discover will drop them like hot rocks if they need to reduce payroll in order to increase profitibility.

Now, here is how they get you. They lower your credit limit, so you will go over. Then they charge you a $39.00 over-limit fee and raise your APR. Robert basically told me that they give no notice because if they did people like me would run out and use up the remaining limit and that would not be right. What? Didn't these banks throw credit at us for years and now that Congress is doing something (a lame job) about it, they are punishing everyone that fed them business.

Check your online statement - or better yet - call. You may not get a letter until after the charge is "pending" and then you are hit with the aftermath and not even I am sorry, I feel your pain. The best thing we can do is become a cash society - difficult, I know, but the only way these institutions will realize our dissatisfaction.

I hope this helps some folks avoid a bad situation.
     
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Bailout MONEY
Posted by on
Discover reaches for bailout funds

By: Steve Daniels Dec. 18, 2008

(Crain’s) — Discover Financial Services Inc. is joining the growing ranks of firms reaching for federal bailout dollars.

Discover has applied to sell up to $1.2 billion of preferred shares to the federal government and to become a bank holding company, reversing its previous position that it likely would not participate in the Treasury Department’s financial rescue program.

The Riverwoods-based credit-card issuer disclosed its about-face in its fourth-quarter earnings report today. In a conference call with analysts, CEO David Nelms characterized the decision as a prudent response to deteriorating economic conditions.

“We’re positioning Discover to be one of only a handful of winners in the payments industry,” he said.

In seeking to convert to a bank holding company, Discover is following the lead of the other big stand-alone credit card issuer, American Express Co., which opted to convert to a bank earlier this year. Assuming the Federal Reserve approves the application, Discover will become the second-largest bank holding company in the Chicago area, after Northern Trust Corp.

Mr. Nelms declined to disclose how much Discover asked for in equity from the Treasury Department. If it were a bank holding company today, Discover would have risk-weighted assets of $40 billion; that would put it in line for between $400 million and $1.2 billion in federal funds. The company hopes to receive a response to its application by yearend.

Discover executives emphasized that the company is well-capitalized without a federal infusion, even as it’s writing off more consumer debt each quarter and expects write-offs to grow next year. It also is funding the vast majority of its loans through deposits, which have grown an average of $1.6 billion per month over the past six months.

“We think (becoming a bank holding company) is consistent with our conservative approach to managing the business,” Mr. Nelms said.

But the consumer spending meltdown is hitting Discover’s bottom line. The company posted fiscal fourth-quarter earnings of $444 million, or 92 cents per share, from continuing operations. Discover would have suffered a loss without $535 million in after-tax proceeds in the quarter from its $2.75-billion antitrust settlement in October with Visa and MasterCard.

Net charge-offs of delinquent accounts were 5.48% of Discover’s managed loans in the fourth quarter, up from 5.2% in the third quarter. Mr. Nelms said he expected the first quarter charge-off rate to exceed 6% and couldn’t predict how high write-offs would go after that.

“We cannot predict the U.S. economy and the state of the consumer with a great deal of certainty,” he said.

Other large card operations, like Bank of America Corp. and Citigroup Inc., are reporting higher charge-off numbers than Discover, and industry analysts are predicting that overall loan losses in the industry could be a record in 2009.


Do you think they are COMUNIST BASED? Think about it getting tree money and then borrowing your own tax dollars back to you at more than 12% interest. Do You think that is a part of COMMUNISM? Write a comment back.

     
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madconsumer on 2009-07-14:
and your point is??
MSCANTBEWRONG on 2009-07-14:
I've heard that many merchant's won't take Discover cards because they are too difficult to deal with. I don't have one, so I really don't know.
Anonymous on 2009-07-14:
So they're trying to save their ass at the expense of the taxpayers and their customers......what else is new? the government will probably allow it. Our economy was based on the rich getting richer at the expense of others and it will never change. The government will approve their move and they will screw their customers just like all the banks are doing. Bottom line is, "lawyers feeding lawyers!" Nothing can be done unless you want to sponsor a "revolution".
MaggieMcT on 2009-07-14:
I thought the days of anything you don't like being "communist" were long gone.
Anonymous on 2009-07-14:
It's July 14, 2009 and the post is a news item dated Dec 18, 2008. Old news, nothing to see here. Move along.
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I Would Like To Complain About Discover Card Customers
Posted by on
I work for Discover Card. I talked to all types of customers all day long and prior to popular belief we probably talk to a lot more rude customers than you probably talk to rude reps.

I have some advice and complaints.

When you call and want to know why your interest is 28.99% and I look at your history and you have been late 11 times in the last to years...please please do not say "Well by how many days?"

I don't care how many days late you were if you are ONE day late than your late. We give you at least 25 days to pay your bill and the feds only require 21!

Please do not call up and tell us we are GOING to do something. You know what we want to do at that point and probably will do. Nothing. We are people to! We are husbands, wives, kids, students, workers, and yes consumers and we probably all have credit cards. Not even just dare I say Discover Cards.

I had a very rude customer call up today saying, "I don't care what your name is. I am going to tell you that you are going to remove this late fee and remove it now." When I politely asked him to bare with me while I review his account he yelled at me he doesn't care what I do but I was GOING to remove that late fee. I removed it because I believe Discover Card is a good company not because he yelled at me and he had never been late before. You get more with honey than you do with vinegar. At your job if someone is rude to you how do you feel? I am a strong believer that you do unto others as you would have done unto yourself. That's why I removed the fee because I know if I called and I had only been late once I would hope someone would remove the fee for me. Now here is a secret if you have never been late before and you have good payment history we will always remove the fee the first time. Second offenders are not also so lucky.

But honestly guys, if your digging your selves in debt holes or treating us (customer service reps everywhere) like robots not people how do you expect us to be able to do anything or want to do anything for that matter? Just food for thought....
     
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Anonymous on 2009-05-30:
ADMIN! This belongs on the forum side.

Mandy, I would take your post a little more seriously if you had not been going on to complaints that are six months old, or older to give your three cents. You haven't given one ounce of helpful advice... only telling customers what they have done wrong, or that Discover is not at fault ....but not what the consumer could do in the future that would help their cause.
DebtorBasher on 2009-05-30:
I've been in Mandy's position many times and I have to agree. Those who started off the conversation with an 'attitude' was less likely to get 'extra' help from me. Those are the ones I did NOT offer other options to. But, if someone was decent and was willing to listen and not tell me what MY job was, I took more time to help them in whatever way I could.

I also agree with Mandy about the one time removal of a late fee if you have a good credit/payment history with your credit card company. It is called a "courtesy fee removal" and the customer was allowed one courtesy fee removal within a twelve month period. Most of the time, the customer has to ask for that removal...NOT DEMAND. I do not give in to demands by customers because when I'm on the phone with them, it is ME who has control of the conversation, not the debtor. If the debtor can't control their own credit, they certainly aren't going to try to take control MY job.
ejack053824 on 2009-05-31:
Soon as he told me "I was going to remove the fee", I would have added another fee and told him tough.
Anonymous on 2009-05-31:
Customers amaze me sometimes. Hearing the way people talk to store clerks, I can only imagine what they are like on the phone. When I have to call up a call centre about a problem, I always assume that the person I'm speaking to does not have the authority to correct the problem and I always assume that if I am nice to the person on the phone, I'll get better service. Unfortunately, most people are interested only in themselves and will never treat others as actual human beings. Good luck to you - I could never do your job.
madconsumer on 2009-05-31:
great review. thank you for the 'other side' of the story.

very helpful.
oldisgood on 2009-06-01:
I have been a Discover client for 20 years. Of the few problems I have had, I ALWAYS try to be polite to whomever I am talking to. I have found out that it is the best way to probably get what you are calling for. I have worked customer service, too, and I always went the extra mile for the person who treated me with respect. Those who DEMAND something were usually not quite so lucky.
laklisa on 2009-06-05:
I love it-I handle customer service reps for a major retailer and can relate.
Schmoopie on 2009-06-24:
Discover card company are jerks. They've become just like all of the rest of the credit card companies! They're screwing over multitudes of people that have NEVER been late on their bill and NEVER got anywhere close to their limit and you guys know it. These actions are only going to hurt them in the long run. You'll see.

I don't see how someone could work for a company like this.
annonymous1987 on 2009-07-21:
mandy: good job representing a great company. You are correct. What differentiates dc from other companies of any kind, is our values. We believe in them, we follow them. I strongly urge card members to think about the way they treat agents on the line.

HOW WOULD YOU FEEL IF SOMEONE TREATED YOUR DAUGHTER, WIFE, SON, ETC THE WAY YOU TREATED THAT AGENT???????

There is always another side to the story. Most card members don't think of that though. They treat you like , crap and then go on with their day. It only makes them look bad though. Little do they know that its a source of amusement to others.

HERE'S A FACT:

YOU AS CARDMEMBERS ARE USING BORROWED MONEY. IT IS NOT YOURS, YOU HAVE DONE NOTHING TO DESERVE IT. CREDIT CARD COMPANIES ARE LOANING YOU MONEY IN GOOD FAITH. THEY DON'T OWE YOU ****. WHEN YOU DON'T PAY YOUR BILL, OF COURSE THEY ARE GOING TO TRACK YOU DOWN. IF SOMEONE OWED YOU 500 DOLLARS, WOULDN'T YOU GO FIND THEM? IF YOU HAD A WAY TO STOP IDENTITY THEFT, WOULDN'T YOU DO IT? COME ON.




Dendryite on 2010-01-06:
I've been a happy Discover customer for over 15 years now (you can read my review) because I've never spoken to a rude rep.

I'd like to point out, however, that I rarely have this experience with other companies. Even though I am always courteous and respectful when calling any customer service rep (AKA human being), the favor is often not returned. Just today I spoke with 2 rude and ignorant reps (moronic robots) at USPS, then to another one in person at the post office. I was nearly shaking with anger after having to be treated this way when I'm the customer with a legitimate complaint who is speaking calmly and respectfully.

I don't know what Discover is doing to keep their customer service so excellent. Keep up the good work!

Does Discover treat their employees well?
idontgetpaidenough on 2012-06-17:
thank you for posting this. after a long day at work in collections for discover it made my day to see this

dr mr smith.
I'm calling u on Sunday because we didn't recive ur payment. yes I know what day of the week it is. I'm sorry u got this call at 830 sir but we have tried to call all week but have not been able to contact you. please sir don't call me names I'm trying to help u. lets come to a agreement so u don't get reported or go over ur limit. yelling at me is not going to resolve this issue.........

sometimes I just want to say hey jerk off I did not make u late. really I'm just trying to do my job and if ur screaming and yelling at me and calling me names. I don't care what ur going through. but respect me I will listen care and help as much as I am allowed. I'm just trying to do my job.

secret #2 people
we wave fees like crazy just be respectfull and work with us.
JACK on 2012-11-21:
YOU MUST UNDERSTAND THAT YOU ACCEPTED A CUSTOMER RELATED JOB and THAT COMPLAINTS GOES WITH THE TERRITORY IF U ANT STAND THE HEAT GET OUT THE FIRE, I WORK IN CUSTOMER RELATIONS and YOU HAVE TO BE HUMBLE TO DEAL WITH PEOPLE
Joe on 2013-09-06:
I just want to say that I called to ask to see if they can lower my rate. I have been with Discover for over ten years, and never been late. Yes, I do have a significant balance with them, but I am in the process of paying it down. I was very cordial with the rep (as she was with me). They said they couldn't help me. They gave no reason why (but I know why, because they want me to keep paying the outrageous interest rate.)

I have not used my Discover card in a while, and will no longer do it. I've gotten a new card with someone else to transfer the balance and pay no interest for 18 months and a lower rate that I am paying now afterwards. Thanks but no thanks, Discover. My 15-20 minute call was clear, cordial, and I never yelled or raised my voice. As it should be.
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Good Riddance to Bad Rubbish....
Posted by on
I too was a loyal Discover Card user until recently. Back in Feb. 2009 I called Discover up and requested a lower interest rate. I cannot remember my original rate but my friend had a lower rate on his Discover Card and I have a good repayment history with them so I thought I would ask. My wish was granted, it was lowered to 13.49%, Not awesome but better than I had before. Then about 6 weeks later I received a letter from Discover that my rate was going to increase to 19.99% and unless I closed my account this was just how it was going to be. Their reason was the current economy and their increases in the cost of doing business. I reviewed my records and thought this must be a mistake, I have never been late or missed a payment and I used my card frequently, so I called them up. I asked the representative how doing this could be good for their business because I will be closing my account and I would imagine chasing the good customers away would not improve their profitability.

I got some canned response and she did not even try and get me to change my mind, or talk to a supervisor to see if they could reconsider, nothing. It was very clear to me that this is not the type of company I care to give my business to so I promptly wrote a letter to them requesting they close my account and I transferred my balance to another credit card.

I realize I may have just hurt my credit score by doing that but I was angry and not willing to put up with their bullying ways. Consumers need to fight back, those of us that still have a home and a decent credit score have to fight even harder today to keep it. I am tired of our government and our creditors trying to force us to pay for the mistakes of others. Spread the word, save your friends and relatives from predatory companies.
     
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BEJ on 2009-05-13:
Yes, you have probably hurt your credit score. It might have been better to keep the card and charge a few small items and paid it off each month. Do you generally just pay the minimum or do you pay more?

Most credit card companies these days are raising interest rates while they can.
Shoelover on 2009-05-19:
Hi BEJ. I usually pay far more than the minimum and when I can I pay the balance in full. I transferred the balance I had on the Discover card to my Chase credit card and they offered me zero percent for 12 mos. which is more than enough time to pay off the balance so in the short term I'm better off. So far Discover is the only one to do this to me. I have since closing my account, gotten an offer to transfer balances to my Discover Card, I'm wondering if it was actually closed, hmm??
Shoelover on 2009-05-20:
Well I received another statement for interest charges after paying my balance in full early and sending a letter requesting they close my account. I know from reading other comments here that this is something I probably unknowingly agreed to. This just doesn't seem right
MandyCakes on 2009-05-30:
When did you send the letter? The mail is not immediate you know. Why don't you call and simply ask..."Is my account open or closed?" Its not like they are hard to get a hold of.
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Better Watch Before Applying For Discover Card - Just Fake And Worst Customer Care
Posted by on
CHICAGO, ILLINOIS -- Yesterday I've applied for the Discover More credit card, impressed by its reviews and my credit card application was rejected. This is the second time my application was rejected for a Discover More Card.

I know Discover more card is tough to get and has many favorable reviews. I have a 750+ FICO credit score and tried to get my hands busy with it.

(FYI I have 4 revolving credit accounts, 2 with WAMU, one with BOA, one with Citi Cards). After my first attempt(jun '08) went in vain I thought it would be better to give it a try after a long period. Yesterday when my application was rejected, I thought it would be better to probe out the cause and to know if the card is not meant for me either.

I've called the customer care number probe out for details; the representative was so eager to end my call saying you should get a letter through mail; I asked her if she could let me talk to concerned department.

I was put on hold for sometime and another representative came into line; this time she's mentioned that "your credit history was not good"; I've reminded her my credit score was 750+ and this was the first inquiry in the past 8 months. she put me on hold and diverted my call to Delaware operations.

This time for a change I was speaking to a representative of senior level for a change and he was keen to end my call as well, citing just "bad credit". I've asked him if he could probe out what was the cause of rejection if he could find anything on report.

1) His reasons were my credit history was fairly young.

2) I've maxed out on my other cards(its a complete lie; in-fact my credit card balances were almost less than 30% of my actual credit line).

3) I've many credit cards and might be a potential defaulter. (I've never missed any of my due-dates for any card so far and my running balances were never maxed out ever on any card).

I've asked him if there's any such rule with the company that YOUNG 750+ credit histories would be considered as a potential threat (his answer was no) and reminded him that my credit cards balances were not as he has mentioned and asked him if he could be able to tell me the possible cause for rejection in a second row. He's just repeated the same sentence "BAD CREDIT HISTORY" and went silent when I tried put some conversation and said that he can't hear me good enough (bad line; but the line was crystal clear)and tried to ask if I had any other questions if not so he could end the call.

I don't think this is the kind of service I expect from a operations-manager from a department or neither is the valid reason for denial. I don't know much if the Discover Card is really that great to have or worth another inquiry.
I make 70k+ per year and has never defaulted for any credit / or was behind on paying interest or never maxed out my credit limit.

One thing for sure that it makes me feel Discover card is another nuance for worst customer service. I wouldn't be applying or this card at all; I am happy with my AMEX BLUE CASH account and wouldn't be suggesting anyone for a Discover More Card. I wish I could show the one finger gesture with the two word sentence.



     
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Anonymous on 2009-03-23:
As soon as I saw that the OP mentioned that a CSR was of a particular race yet there is no mention of poor treatment by any other unmentioned race, I stopped reading.
Anonymous on 2009-03-23:
How do you know the race of the man over the phone? And why do you feel the need to mention his race?
jktshff1 on 2009-03-23:
The "African American male" in this post has no bearing whatsoever regarding the problem.
With so many credit cards, and making so much money, why in the world do you need or want another one?
Just pay for what you buy.
kaboodle on 2009-03-23:
folks, I didn't meant to bring-up race here. It was a mistake. My Apologies..
jktshff1 on 2009-03-23:
well thanks for posting your reply.
still why do you need another credit card?
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Just Wow
Posted by on
Truth be told; my first gripe with Discover goes back to an offer for a consolidation loan that they only offer to their top members with great payment history which I chose to accept but was then denied for. I'm not a big fan of soliciting an offer then not being able to deliver when the offer is accepted.

Despite the earlier disrespect; I was willing to give Discover Card another opportunity to keep my business. I recently came into some money that allowed me to repay ALL revolving debt and as of now I am debt free save for my monthly house payment. I paid my nearly 5,000 balance (including all new charges) prior to that month's statement closing date and thought that would be the end of it; after all nearly every credit card I've EVER had has worked under the same terms, pay in FULL prior to statement closing date and pay no new Finance Charges. So imagine my surprise when I came home today to find a statement from Discover in my mailbox asking me for $109.16 in finance charges.

I sat through the 20 minute menu of Discover's automated system before getting one of India's finest (to his credit, at least I could understand him and he could understand me) to explain to me just what the score was. He explains that the fact I just paid 5,000 prior to the statement closing date (as had it been after, I'd have at least somewhat understood) meant nothing and these finance charges were actually BACK charges.

By this point, I'm not even going to argue; I simply go straight to the jugular. "Let me pay you and close my account" The customer service representative on the other side tells me to hang on, he's looking into something; which I assume is going to be a concession of some sort to keep my business in these troubled times; God knows I've given enough concessions in MY business to keep my customers happy and coming back each month; despite being "right". As it turns out after a short hold he simply reaffirms my request to pay and cancel. I advise him, yes this is what I'd like to do; though he'd do well to redeem my 25.19 in Cashback Rewards towards this final payment prior to taking one red CENT from my account. He advises I only have 20.00 available for redemption, so now this 109.19 dollar bill has just become 94.38. Fine, process the payment and I'll just forget the 5.19 I've "earned".

Bottom line is I'm disgusted I've ever done business with this company. From this day forward I will make it my life's mission to do everything I can to make sure this laughingstock of a company doesn't get another red CENT from anyone out there.
     
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Anonymous on 2009-01-23:
I agree with you that Discover is the bottom of the barrel as far as credit cards go, but I think you may be mistaken about the interest. Revolving credit generally accrues interest on a daily basis. The amount of money you were billed would have been the daily interest between when you were last billed, and when they received your payment.
Often if you call them and ask for a payoff amount, they will quote you an exact amount and tell you how many days that figure will be valid, and if you pay off within that timeframe, there is no additional interest due.
Tank78 on 2009-01-28:
Ken

I appreciate your feedback; and I'm sure that's probably the argument they would make. I'm not one who doesn't read the fine print on his customer agreement then whine's about it. I don't doubt for a second they COULD have charged me; based on the terms of the agreement; I just think that it most definitely was not in their best interest to do so; either now or to anyone I care about ever again.

I guess the biggest issue in this situation is more ME than them. I work in a service industry myself; and frankly I've waived more fees, charges and basically given my customer's more lee-way when I diddn't have to because it was what is BEST FOR BUSINESS! Losing that minimal amount of money now was worth what I'd continue to collect in the long run; it's like Amerillo Slim's Maxim in action; you can sheer a sheep many times; yet only skin him once. . . I'm not SKINNING anything I don't have to right now.

Discover saw things differently. They chose to lose an account of over 10 years and SEVERAL thousand dollars over 84 bucks and some change. Does this make them WRONG, not necessarily (though I do still disagree with the charges that started this whole mess as a term of administration); does it make them STUPID~! Most certainly.

Thanks for taking the time to read and respond! Best wishes for a blessed 09.
datguyfenix on 2009-03-10:
If you think Discover is bad, try dealing with similar crap from Citibank or Bank of America's credit-card divisions.

Bottom line, by law, these credit-card issuers are allowed to average daily balance over a sixty-day period to charge interest, when you carry a balance over from one statement to another.

Your argument that paying off a balance prior to next billing date should mean no further interest, seems good on paper...but this is amongst the many arguably stupid and definitely ruthless ways credit-card issuers make their money.

And if you thought they lost your business and that's the end of it, I am afraid they may still have the last laugh...check to see how closing that account may have dinged your credit-scores.

In this sod-all system, only the system wins...not us end-users.
Happy Gal on 2009-03-24:
First of all, this customer does owe finance charges if she just paid the balance based on the statement amount. If the statement is printed on 03-20 with a balance amount and the account is paid on 04-09 (due date), the interest from 03-20- 04-09 still accrues and is owed. This interest will show on the next months billing statement. This is not complicated. Also, Discover Card does not outsource its customer service representatives. You will not speak to an Indian person unless he/she lives in the U.S.- (except if you speak Chinese). Do research before posting silly complaints, this isn't rocket science.
Tank78 on 2009-03-24:
Happy Gal and Datguy

I appreciate you both taking the time to read and comment, however you still both seem to be missing the point I made following Tom's comment, so let me say it again for the cheap seats. I AM NOT DISPUTING THAT DISCOVER WAS WITHIN THEIR RIGHTS TO CHARGE AND COLLECT THESE FINANCE CHARGES. What I am saying is that it was not within their best interests to do so; and most other CC companies I STILL do business with make it nice and simple, pay the amount on the statement before the next statement comes due, and no new finance charges go on; nice and simple. Discover seems not to abide by this principal, and in fact values it over my thousands of dollars in revolvind debt; so they can keep their principles and I'll give my thousands of dollars to revolving debt to a creditor who deserves it.

On a personal note, thanks Datguy for keeping it civil. (and I'm not that worried about the FICO score, I'm making up the hit elsewhere) And while I'm sure your heart is in the right place happy gal, if the gentleman I spoke to is American, he's got the worst accent and grammar this side of Bangledesh, and as for your "research" comment. This isn't a site to post doctorial thesi; it's a consumer awareness forum. . . ON THE INTERNET. There are plenty of ill-informed; poorly researched scribings in cyberspace; but frankly since this was a summary of personal experience posted to a forum dedicated to educating others based on said experience I feel justified in every word written. But again, thanks for taking the time to respond; and all the best.
hello dolly on 2009-03-24:
One of the best reviews I've read lately. Not whiney or bashing just straight forward. You probably will weather this tough financial time well given your optimism and upbeat personality. The interest was correct though.

good luck. Oh and by the way I gave up on Discover for the same reason years ago. It was general principal more than any other reason. I haven't missed them one bit either.
Anonymous on 2009-03-26:
This is called "double billing" or "2 cycle billing" which is wrong. If you pay your entire balance off BEFORE the due date....you're done. You can't acquire new interest charges on a 0 balance!
I had a huge fight with CHASE about this and won. JERKS!
prettyinpink1234 on 2009-05-08:
discover call centers and out source call centers are in America unless you press 2 for spainsh (you get Mexico). and part of the new terms level change they gave up 2 cycle billing. and the reps would bend over backwards for you except their hands are tied by the computers. they cannot make adjustments when the option isn't available in the computer.
Happy Gal on 2009-05-09:
Sorry to offend Tank78, my honesty can be brutal at times. I also understand that this isn't a forum for composing a thesis. On that note, I do have a tendency to blame consumers for not educating themselves before posting (I'm sure you received the terms for your credit agreement, boring but worth reading). From what you've been stating you think you deserve a break from paying interest that you owe because you are a valued customer (you agree they have every right to charge it, yet you think they are terrible for not waiving it for good customer service purposes- I get it, and I got it the first time). That would be nice, but your original post suggests that you feel entitlement for some type of interest waiver. I agree with you that it would be wonderful for companies to make occasional concessions but they certainly aren't under any obligation. I understand your frustration but you have to remember it is ultimately YOUR interest charge.
annonymous1987 on 2009-07-21:
Discover Card does not outsource. If you speak with someone who has an accent, its because they are a different nationality, liveing and working in the US legally. Probably Born here too.

ohiotodd on 2009-10-06:
I have to agree with the original poster of this message. I have a Citibank card with no balance. Have not used it in months. They gave me a 1.99% balance transfer rate for 18 months. So I paid off 4 accounts with that money, approximately $15,000. No I have 1 balance, 1 payment at low interest for 18 months. They sent me a check and charged me a one time $99 balance transfer fee. I deposited the check into my checking account and paid off my other 4 accounts - Chase, US Bank, American Express, and Discover. I paid all of them electronically and made sure all received the full payment (my balance) by the due date. This was about 3-4 weeks ago and I have gotten statements for all 4 cards. US Bank, American Express, and Chase did not charge me ANY interest. Because I paid my balance in full. Discover charged me $72 in interest. I called and the rude woman told me that this is how ALL credit cards work. I explained that no, usually if you pay off a card in full before the due date, you don't pay any interest. She stopped short of calling me a liar and an idiot. She said she didn't know what planet I was from, but all her other cards worked just like Discover do. Needless to say, I closed my account. I was going to anyway. I have had the card 12 years and they recently sent me a letter that they were raising my interest from 7.99% to 34.99% for no reason. I have a 786 credit score. This company can rot in h**l.
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Discover Predator Creditor - Do Not Use
Posted by on
My Discover card adorns my bottom sock drawer and will continue to do so for the foreseeable future. I receive "offers" from Discover cluttering my junk mail 'round file' at least 4 times a week containing blank checks (a dangerous practice at best) attempting to lure me into limited-time low interest balance transfers and high ticket purchases, and still more "offers" related to bogus cash back bonuses, etc. The main reason I will not use the Discover card (which I have had since 1994 and previously did use) is their ridiculous and unrealistic interest rates. My credit score is 720, and no other creditor charges me as much as Discover. I have called them several times in response to their offers and suggested if their rates were better, I'd be more likely to return as a customer, and the best they offered me about 3 months ago was 18%.

I checked out Discover at Wikipedia and here is what the article had to say:
"In the latter part of 2007, Discover Card began raising interest rates on many of its longer-term customers, typically to the Prime Rate plus 14.74% (which in October 2007 equated to a 22.99% annual percentage rate). Customers who request the reasons in writing for the decision are notified that the increase is based on any (and not necessarily all) of the following characteristics:
Account open longer than 12 months
APR less than 20.00%
Account not used monthly"

Today I received a form letter, ostensibly from the Sr. VP, thanking me for my phone call and again offering me various cash back bonuses (mostly for online services for which I am CERTAIN they receive a kickback from the vendors), but again, no offer of a reasonable interest rate. This was my response (name excluded due to TOS):

"I appreciate your form letter of (no date 2008) offering what you perceive as incentives to use my Discover card. Since you care so deeply about my opinion and needs as a cardholder, please allow me this opportunity to share them.

What cardholders need is reasonable interest rates. We don't need silly cashback bonuses and online shopping with vendors who pay you a kickback. We need lower interest rates. The current financial times demand it. I assume you read a newspaper recently.

My VISA card charges me 10.99% annual percentage and my Mastercard charges me 8.9%. These are not introductory rates either, they are the actual APR for these cards (introductory is 5.9 and stays that low for the LIFE of the loan, not just a few months), and have been for at least 5 years. I have a credit limit of $15,000 on each of these two cards, so no silly little cashback bonus is going to be any kind of incentive for me to pay you upwards of 18% to use my Discover card. In fact, by paying OFF c(p)reditors like you and shifting my remaining debt to these permanently low interest cards, I have improved my overall financial standing tenfold. As a result, I will actually be able to buy my own home, at a reasonable fixed rate mortgate (no phony "zero-down" scams), in about 18 months from now, once the mortgage and banking industry stabilizes. Of course, were it not for preditory lenders and greedy ridiculous interest rates forcing people to default, said instability would never have occurred. I imagine (and hope) the shockwave will "trickle down" to lenders like yourself as well in the near future, and when it does, and when you realize you can only stay in business by charging a fair and reasonable interest rate, then maybe I'll take the Discover card out of my sock drawer and consider using it.
Sincerely,
my name
a very happy NON user of your services
NOT lured into financial ruin by false promises of "rewards"
and the American Dream of homeownership
(in other words, NO FOOL, and proud of it)
     
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Anonymous on 2008-10-07:
This is capitalism. They have a right to charge what they want, and you have the right to choose not to buy (use) it.
If you have so much credit on lower priced cards, why are you so ardently pursuing Discover?
NickL11354 on 2008-10-07:
Pay in full then you don't need to worry about what the interest rate is.

The days of easy credit , living beyond ones means, playing the balance transfer game are over.
Anonymous on 2008-10-07:
Very good review. I wish more consumers would take a stand against consumer unfair and unfriendly practices. (VH)
tnchuck100 on 2008-10-07:
I like your letter. Everyone that has fallen victim to the new wave of credit card companies and bank greed need to think like you do. I look forward to seeing what happens when they have managed to run off many of their responsible, good paying clients and are left with only their late-paying, over the limit, defaulted clients. I think we are seeing the start of it now.
madconsumer on 2008-10-07:
all you need to do is opt out of future offers. the telephone numbers are listed on the bottom or back to the offer they send you. they send these out due to your credit rating, being good that is!
Slimjim on 2008-10-07:
I agree with you not using it with other options available. Could use it as just a charge card and repay back each month in full, hence getting those cash back credits they offer. Like Ken said, why care so much with other cards to choose from.
Nohandle on 2008-10-07:
A year or so ago I finally returned one of those numerous Discover Card invitations thinking cash back at year end would be nice. I was going to pay some company anyway, why not take advantage of a little back. When I began receiving numerous solitation calls on behalf of Discover BEFORE I had even received the card figured they might be a pest I didn't care to deal with. The day the card arrived I called and cancelled it.
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Complaints
Posted by on
OK, I have to respond.
I have worked for Discover and some of the "reviews" are just so unfair and basically nothing but whining. I can tell you first hand that Discover trains its employees to take care of the customer. EXTENSIVELY TRAINS. People have such unreal expectations these days its amazing to me.

A few replies to other reviews:

"Discover is the only company with a special division whose focus is to deter consumers from canceling their cards."
......Is this a joke? Every credit card company has one. However if your business is not profitable to the company your acct can be statused to be closed front-line without being transferred. Maybe these other companies you speak of didn't care enough about your business to try to take care of fixing the problem and keeping you.


"I asked a for a copy of the recording and he thought that was real funny and said I would never get a copy of that. I said then how do I know that you (Discover) even said that?"
........ The recordings are not for you. And FYI, each rep takes about 120 calls per day. And there are literally thousands of reps. Do you have any idea how hard it would be locate one specific conversation?? Not every call is recorded and definitely not done to prove a point to you. These recordings are for training and legal purposes.



"On October 7, 2007 I accepted an offer for a $25.00 dollar gift card to RED LOBSTER restaurants for $20.00 out of my cash back bonus on my Discover Card. Sounds like a good deal, right? Well it is now April 28, 2008 and I have not yet received said gift card and they will not put my $20.00 back into my bonus plan. Can you say RIPOFF!"
.............Who waits 7 months to call and complain about not getting a gift card??!! And PS, you can get your money back, call again and ask.



"My credit Score is Excellent. This is my very first time with a denied credit card application.
((hard on the ego??))
I posted two months ago an application to Discover Credit cards; Today I received another letter to advise that my application could not be approved. Apparently my ethnicity/origin is important to them since I am Hispanic."
........ GIVE ME A BREAK! I got a call from someone going nuts because she had an "excellent" score too! 600! That's not even an average-risk level. I have no idea what your score is but there are PLENTY other considerations for determining if you get a card. First off, DC is not Visa- who will give a 10k limit to anyone with a pulse- and yes, its a little harder to get. But to say that its because of your ethnicity is completely ridiculous. Its a BUSINESS, to make money... They don't care if you are a green-skinned-Martian. If you look profitable on paper, you'll get a card. Get a credit report.


"Years ago my sister had a Discover credit card. When I turned 18 she put me on the account to help build up my credit. (And just as a side note, I never used the card.) She suffered a physical & mental break down a few years later and had to stop working. She filed for bankruptcy and the Discover card was included. " (this goes on about it hurt her credit and how horrible DC is for doing that to her)
....... Although I sympathize with this one, I still would like to make a point. If you are an Authorized Buyer on an Acct you can be removed with a click of the button and even request to have the credit tradeline removed. If you signed a Joint Cardmember agreement to help your credit then you signed a contract taking responsibility for the card. End of story. You made a choice and DC, or any other card for that matter, cannot go in and say, never mind you aren't responsible. A) that's not fair to the company you were trying to get good credit out of, and B) It's Illegal to change how you are reported to the credit bureau just cause you don't like it. Its not like DC makes money off reporting you.

**Bottom Line**

Take a little responsibility for your financial decisions. You can choose to pay off your card every month and never pay a dime in finance charges AND still earn money from the company for Cashback Bonus...OR... you can build up your debt, become delinquent on your acct and have your rates raised (because, hello, its a LOAN and you are becoming a huge risk to the company) and then cry about how unfair and "predatory" the company is. It is spelled out in the agreement that you fulfill your end, and we fulfill ours. People want to be late or skip a payment and have no repercussions. Truth be told, although I am admittedly biased, DC is an awesome company that sincerely tries to please its customers. If you call in yelling and screaming and demanding, you're right, you probably won't get helped as much. But 9 times out of 10, we will bend over backward to help..be it reinstating rates, adjusting fees, and giving you back money for using the card. Discover is awesome.







     
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Anonymous on 2008-08-07:
AMEN Discover employee! Some people just want to find any scapegoat they can for their negligent actions. You worded your complaint fairly and accurately, no lies, no bad language, just telling the truth. Hopefully people will realize sooner rather than later that when they make bad decisions, it is their fault, not someone elses. (VH)
Anonymous on 2008-08-07:
I used to be a good Discover customer. That was until I had some fraudulent charges placed on my account. After I sent the documentation showing the charges were incorrect they were removed. Two months later they were put back on. When I called to inquire why, the agent told me it was because the merchant claimed they were legitimate, only they had no paperwork to back it up. When I asked (politely) why they accepted the undocumented word of the merchant over my iron-clad documentation, she told me, and I quoue "we don't want to be in the middle, so just deal with it". I did. I closed the account, and I will NEVER go back.
Interestingly enough, I am willing to bet that they have spent an equivalent of the disputed amount trying to get me to come back. They can kiss my sweet irish.... rose!
P.S. And I DO have a high credit score.
Korthtron on 2008-09-08:
Oh I make fun of my mom so much for using this credit card sometimes I actually feel bad even if its all in good fun. She's happy with it its generally not accepted from quite a few smaller internet stores though.
barrels17 on 2008-12-24:
THANK YOU! I work at discover, and everything you said is right, reading all of these reviews I couldn't help but laugh because most of these "problems" were self inflicted. If everyone knew what a Discover Card account manager had to go through everyday there wouldn't be any complaints on here.
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