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Discover Card Complaint - Arbitrary increase of rate for good customers!! - Credit Card
Credit Card - Complaint
The following is a letter sent to David Nelms, Discover Financial's CEO, by email and fax -
"I have been a Discover Card member for over 6 years now and until today I have been pretty happy with your company. Unfortunately, I just learned that my interest rate had been arbitrarily increased from 11% to almost 16% for no good reason! The “reasons” given me when I pressed your customer service agent were that some of the following may have applied and thus the company felt justified in penalizing me by increasing my rate: (1) long standing card holder (for greater than one year) – isn’t this a good thing? To be celebrated???; (2) interest rate currently less than 20%; and (3) less than monthly usage. The first two are correct, and the last is absolutely not. I use the card often, have maintained a healthy balance for you to make money off of for a long time, and always make my payments and in excess of the minimum due. How does this qualify me for a penalty???? You have just lost my business. And my husbands. I will also be posting this disgrace on consumer websites so others are not subject to this behavior. How dare you?
Note that I have just made arrangements to close my account and will be paying off the balance in full immediately. You are a grave, grave, grave disappointment as a company."
Please pass along this infuriating and unfair behavior to other unknowing card holders.... I makes a person feel like doing the right thing isn't even good enough any more!!!
"I have been a Discover Card member for over 6 years now and until today I have been pretty happy with your company. Unfortunately, I just learned that my interest rate had been arbitrarily increased from 11% to almost 16% for no good reason! The “reasons” given me when I pressed your customer service agent were that some of the following may have applied and thus the company felt justified in penalizing me by increasing my rate: (1) long standing card holder (for greater than one year) – isn’t this a good thing? To be celebrated???; (2) interest rate currently less than 20%; and (3) less than monthly usage. The first two are correct, and the last is absolutely not. I use the card often, have maintained a healthy balance for you to make money off of for a long time, and always make my payments and in excess of the minimum due. How does this qualify me for a penalty???? You have just lost my business. And my husbands. I will also be posting this disgrace on consumer websites so others are not subject to this behavior. How dare you?
Note that I have just made arrangements to close my account and will be paying off the balance in full immediately. You are a grave, grave, grave disappointment as a company."
Please pass along this infuriating and unfair behavior to other unknowing card holders.... I makes a person feel like doing the right thing isn't even good enough any more!!!
Comments:
Posted by Greg54 on 2007-12-06:
Heard a news item on this just the other day. The credit card companies are doing this as part of their "risk management". Doesn't matter if your account is "perfect" with them or not. If there's been a drop in your FICO score, you've opened another credit account somewhere or any one of numerous other reasons, they'll jack your interest rates up.
Posted by FoggyOne on 2007-12-07:
Greg54 is right - anything negative (NSF check, insurance claim, etc) in your day-to-day living can change your percentage rate upward for many cards.
Posted by TiredOfThisToo on 2008-03-20:
Joining the defensive against Discover here too. Selective and dramatic APR increases on "The Good, Revenue-Generating Customers" is definitely an ugly display of greed or a failing company! I too was part of this "Selection." However, the only answer I was given regarding the shocking rate hike was that it was done to help keep the company competitive?! What?! Granted, I don't know the company's true current situation. However, I can see no good strategy in this move on behalf of Discover Card. I was loyal to this company and actually enjoyed using their "Miles Program". However, now I feel financially abused by a company that I allowed myself to trust. Goodbye Discover! Hello Better Business Bureau, Local, State, and Federal Government Official Representatives!
You know what would really be a shocker? To see an apology and reimbursement?! Who's holding their breath?!
You know what would really be a shocker? To see an apology and reimbursement?! Who's holding their breath?!
Posted by aquasue on 2008-04-14:
Discover card is doing just fine...they are changing rates to be more competitive. Pay your account off each month and you wont have any finance charges. Discover is the only card with no annual fees! You will see increases in your rates if you become delq with any other bills...thats how the world works. Just like your car insurance it will go up if you are delq on your home loan. Just a fact of life. Once you go to another card I bet youll see they are much better than you think.
Posted by CreditCardAdvice on 2008-05-01:
Yup I'm standing by aquasue here.
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