Discover Card Complaint - Discover Predator Creditor - Do Not Use
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 percieve 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.
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)