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Discover Card Complaint - Just Wow - Discover Card
Complaint
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 payed 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 laughing stock of a company doesn't get another red CENT from anyone out there.
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 payed 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 laughing stock of a company doesn't get another red CENT from anyone out there.
Comments:
Posted by KenPopcorn 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.
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.
Posted by 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.
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.
Posted by 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 thats 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.
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 thats 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.
Posted by 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.
Posted by 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.
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.
Posted by 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 pricipal more than any other reason. i haven't missed them one bit either.
good luck. Oh and by the way I gave up on Discover for the same reason years ago. It was general pricipal more than any other reason. i haven't missed them one bit either.
Posted by anncat70 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!
I had a huge fight with CHASE about this and won. JERKS!
Posted by 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 cant make adjustments when the option isnt availble in the computer.
Posted by 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.
Posted by annonymous1987 on 2009-07-21:
Discover Card does not outsource. If you speak with someone who has an accent, its becuase they are a different nationality, liveing and working in the US legally. Probably Born here too.
Posted by 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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