DISCOVER BANK
Consumer Complaints
There are over 11723 complaints on file for DISCOVER BANK. Dated between 2019-12-12 and 2011-12-01.
Complaints Page 294
2016-01-28
Doylestown, PA
Disclosure verification of debt
Debt collection: Credit card
Not given enough info to verify debt
Company Response: Closed with explanation
2016-01-27
Sheridan, WY
Dealing with my lender or servicer
Student loan: Non-federal student loan
Having problems with customer service
Company Response: Closed with explanation
2016-01-27
Laurence Harbor, NJ
Account opening, closing, or management
Bank account or service: Checking account
Company Response: Closed with monetary relief
2016-01-27
Phoenix, AZ
Closing/Cancelling account
Credit card:
Complaint: Yesterday I called Discover Financial to activate my mother 's supplementary card, but was informed that it was cancelled since I did not provided some information regarding her. I have been a Discover card member for close to 8 years, and my mother has had a supplementary card for several years also.
I have XXXX issues with this:1 ) I or my mother never received any type of notification on this regard. Not by email, letter or pop-up on the website.2 ) I informed that my mother does not live in the US , when the card was originally issues, an therefore does not have a social security number. The agent mentioned that she could n't do anything on this regard and therefore could not give my Mother a plastic. Due to this experience, I will cancel my credit card with you once the current charges are paid. First of all, I am really concerned that my credit card company could not reach me on this regard, and lied to me on the topic. I did not received any information on this regard, even if it was addressed to my mother 's name.
Secondly, my mother has a supplementary card for other US based financial institutions. I have received similar requests from their part, and I have explained the situation and the necessary steps were taken to ensure that my mother could continue to use her card. I understand the need for additional security, but not having an alternative to accommodate for this situations is unacceptable.
I was happy to provide any additional information or documentation regarding my mother, but you policies clearly do n't have the vision to provide reasonable accommodations in your " know your customer '' policies. This is clearly a discriminatory lending practice based on a national origin. If my mother lived in XXXX, a place where their government issues these numbers, would Discover have an issue with it? Discover stated on an email, that they request this to everyone, but do they do they validate if a XXXX number is used?
Company Response: Closed with explanation
2016-01-27
Phoenix, AZ
Dealing with my lender or servicer
Student loan: Non-federal student loan
Received bad information about my loan
Complaint: I am writing to obtain assistance with a delinquency Discover Student Loans reported on my credit report for my previous attendance at UnivXXXX I currently hold XXXX student loans with Discover.
I am currently a full-time XXXX at the UnivXXXX XXXX XXXX XXXX - XXXX. XXXX loan has been in repayment for around XXXX ( 1 ) year, for which I have made 100 % of my payments on time. The other loan was in deferment until on or about XXXX XXXX, XXXX. Because of my full-time XXXX during which I obtain 100 % of living expenses from student loans, I was unable to make the XXXX $ XXXX/mo payment in addition to the other loan payment of XXXX $ XXXX/mo and thus requested that the loan be placed in forbearance in XXXX XXXX.
This initial forbearance request was denied by Discover citing an excess of income. To arrive at this decision, the agent required me to use an annual estimate of my student loans in support of annual income, despite my saying that I received no income while in school. The agent essentially said because I use student loans for living expenses, they must be considered as income, and were required as part of Discover 's forbearance calculations. These calculations demonstrated I had too much annual income ( as student loans ), and thus disqualified me from forbearance.
Because of my financial situation, I was unable to make the XXXX XXXX payment. My school 's financial aid adviser called Discover on my behalf to verify whether student loans are considered income, and informed me that Discover responded that they indeed are not. I then called Discover again on or about XXXX XXXX, XXXX to begin the forbearance process anew, which was this time granted on the basis of my lack of income. The agent, " XXXX, '' informed me that the forbearance would be applied to my account retroactively, based on a disclosure agreement which was read to me.
I have since discovered that this account was reported 30-60 days delinquent on my current credit report. I have attempted to call Discover twice to resolve this matter based on the previous facts, XXXX which times have been unsuccessful. I made my second call to Discover on or about XXXX XXXX, XXXX, where I spoke with a supervisor, " XXXX '' ( ID # XXXX ). When explaining my concerns, XXXX initially maintained that Discover was unable to make adjustments to my credit report because Discover 's definition of retroactive, based on their disclosure statement ( which she reviewed from the recorded XXXX conversation ), applies solely to the monetary payments, and not to credit reporting. When suggested that the nuances of the definition of " retroactive '' in this context were unclear, XXXX essentially responded that it was my responsibility to ask such questions of the telephone agent myself following the reading of the disclosure. Moreover, when I told her how I initially attempted to apply for forbearance in good faith in XXXX, XXXX informed me she was unable to review a recorded call from that time to verify this information. XXXX informed me that she would have to look into this matter further and call me back.
My credit report is now damaged in a significant manner because of misinformation and deceptive business practices on the part of Discover. I was led to believe based on their disclosure that this retroactive application of the forbearance would resolve any outstanding delinquency issue. I also attempted - in good faith, in a timely manner - to obtain an initial forbearance, but was procedurally barred from doing so because I was pressured to reveal student loan data as income. Furthermore, Discover is using selective review of recorded calls to support their case, leading me to feel bullied and unconfident that there will be a fair and unbiased review of this matter.
Company Response: Closed with non-monetary relief
2016-01-27
Lexington, KY
Account opening, closing, or management
Bank account or service: Checking account
Complaint: I opened a checking account with Discover Bank on XXXX XXXX, XXXX during a promotional period that offered a {$300.00} reward for opening a Discover Cashback Checking account and making two direct deposits within 90 days of account opening. During the online application process I saw a notice confirming that the promotion had been applied, but I also called shortly after I had finished applying and had a customer service representative confirm my eligibility for the promotion and that it had been applied to my account. I completed my second direct deposit on XXXX XXXX, XXXX and waited a whole month before calling Discover to ask about the promotional reward ( the offer stated it could take up to 30 days after the second direct deposit to process the reward ). On XXXX XXXX, XXXX I called Discover to inquire about the promotional reward and had a representative confirm both my eligibility for the promotion and that the requirements for the promotion had been met ; the representative said he or she would submit a ticket to the department handling promotional rewards so that I could receive it. After not receiving the reward for several days, I called discover again on XXXX XXXX XXXX and was told the same thing as the call on XXXX XXXX : that I met the requirements for the promotion and that he or she would submit a ticket to the department responsible for issuing promotional rewards. After not seeing the promotional reward or hearing from discover bank for nearly 3 weeks, I called again on XXXX XXXX XXXX and was soon connected to an account manager. The manager I talked to on the XXXX told me that although the promotion had been applied to my account and I received confirmation and met the requirements for the promotion, that I was ineligible for the promotion because it was " targeted. '' I asked the manager to elevate the issue to someone higher and she told me she could file a feedback request on my behalf, but that was the end of that. I have yet to hear back from discover and fear that I will not be contacted yet again.
Company Response: Closed with monetary relief
2016-01-26
Jersey City, NJ
Other
Credit card:
Company Response: Closed with non-monetary relief
2016-01-26
Grand Prairie, TX
Cont'd attempts collect debt not owed
Debt collection: Credit card
Debt is not mine
Company Response: Closed with explanation
2016-01-26
Federal Way, WA
Account opening, closing, or management
Bank account or service: Checking account
Complaint: I signed up for a checking account during a Discover Bank Checking promotion where they offered a {$300.00} Bonus when you open a Free CashBack Checking account with direct deposit. To receive {$300.00} bonus : 1 ) account must be opened between XX/XX/2015-XX/XX/2015 using offer code XXXX ; I opened my checking account on XXXX/XXXX/15. 2 ) at least XXXX Direct Deposits of {$250.00} or more must be received within 90 days of account funding. I had XXXX direct deposit payments completed with {$250.00} on XXXX/XXXX/15 and XXXX/XXXX/15. This falls within the time period of 90 days since the opening of the account. Bonus will be issued as a credit to your account within 30 days of completing all requirements. Today 's date is XXXX/XXXX/15 and it has been more than 30 days since the requirements have been met.
Company Response: Closed with monetary relief
2016-01-26
NJ
Cont'd attempts collect debt not owed
Debt collection: Non-federal student loan
Debt was discharged in bankruptcy
Complaint: The creditor is Discover Private Student Loans. I was a co-signer for my son. The money was not used for tuition and education expenses, but for his housing and living expenses while in school. The loan does not qualify for protection because it does not meet the criteria under 523 ( a ) ( 8 ) of the Bankruptcy Code. The creditor was notified by the BK court, did not respond, and the debt was fully discharged in XXXX, XXXX. Now in XXXX, XXXX, I have started receiving collection calls ( XXXX ) trying to collect the debt. When I give them the BK info ( Case Number, Court where filed, Judge 's Name, and Date of Discharge ), they argue that they do not have to honor it because Student loans are not dischargeable. I 'm XXXX years old. My son did not discharge his debt to them and is still on the hook for it. He is currently out of work and struggling to get by. XXXX clearly shows the name and address of this creditor. There should be protection for us and a way to stop this from happening. Bankruptcy is stressful enough without having to relive it daily with collection calls for discharged debts.
Company Response: Closed with explanation
2016-01-26
KS
Communication tactics
Debt collection: Credit card
Frequent or repeated calls
Complaint: calls twice a day leave message or says nothing
Company Response: Closed with explanation
2016-01-26
Glendale, CO
Managing the loan or lease
Consumer Loan: Installment loan
Complaint: Discover is now offering consolidation loans. I took XXXX out and I also opened a discover " bank '' account. The bank account pulls money from my checking account but then holds the money for over a week. I want to say the funds were held for 7-10 days. That 's fine if it was a check but this is an EFT transfer. So, I 'm losing the money out of my bank and not able to use it to pay my loan. So, In the meantime I look at my loan and pay the bill but the payment gets returned because the funds that they pulled electronically are n't available yet. Ok fine that does n't seem right but whatever. So, I paid 2 months on the loan and it should be due again in XXXX. I get online and verify this. Then today I find that the loan payment pulls monthly even if it 's not due. So, the site a few days ago says the payment is due in XXXX. I look at the next payment and that says XXXX and yet the payment gets pulled for XXXX anyway. So now I 'm overdrawn on the bank account will pay a fee for the return on the loan as well as an overdraft on the bank account. Then they 'll pull the money from my checking account. Hold it for 7 plus days and take fees out of it. So, when it 's time to pay XXXX bill it will be short and I 'll have to send more money that will get held and have fees taken out of. So, it 's this vicious cycle that you ca n't get out of. They should n't hold a deposit that they pulled eft out of my bank account for that long. They need to give better info on when payments are being pulled and they should n't say a payments not due and still pull it. It all ends up costing the consumer a lot in fees. After the last time this happened I thought I was planning ahead and getting the money into the " bank '' account a month early was enough time. It is n't. I 'm out fees again. Does n't seem right. Maybe it 's just me,
Company Response: Closed with monetary relief
2016-01-25
Cataldo, ID
Billing disputes
Credit card:
Company Response: Closed with monetary relief
2016-01-25
Staten Island, NY
Deposits and withdrawals
Bank account or service: Savings account
Complaint: I got my check stolen on XX/XX/2016.it belongs to my discover saving account ( XXXX ), the check no is XXXX.i talked with discover fraud department.they said if I donot file police report, I would not get my money back.Then when I file police report, the police said they need my check info.however, discover bank shut down my former account, I could n't see all of former information of my account.i contacted with them more than 20 times.
First, discover bank said XXXX fraud liability ... why I could not get my money back?
Second, some of my coworker has the same issue, they all get their money back? why I could not?
Third, if they donot give me my former account info, how can I file police report?
Company Response: Closed with monetary relief
2016-01-24
Milwaukee, WI
Credit line increase/decrease
Credit card:
Complaint: In XXXX of 2015 I was approved for a Discover Card, which I have used responsibly. I have always made my payments on time and never gone over my limit. Well, Twice in 2015, Discover Card lowered my limit in an unjustifiable manner. Each time they lowered the limit so low as to make it seem as if I was maxing out my Discover Card and this was not the case. Each time they lowered the balance in this manner it makes it seem like I am managing my credit card poorly and causes my credit score to go lower because it looks like my card is maxed out. I find it completely unacceptable that they can do this to this customers without any regard to the long term impact their customers will suffer from doing this. Twice, they have lowered the limit to {$29.00} above the new lower credit limit they have set for me. I started out with a limit of {$1000.00}. Then, Discover lowered it to {$780.00} and left me {$29.00} available and once again they have lowered it to {$500.00} and left me {$29.00} available. I pay my cards with the intention on being able to use them again if I should need them, but Discover Card 's activity really makes me regret working so diligently to keep things paid down. I am now preparing to purchase a second home and I have to wonder what this sudden decrease is going to do to my credit score. It is truly a sad thing that customers have no protection against the decisions of these big card companies. I do n't know if the decision to lower my available credit is based on racial profiling or not. I could understand if I was late on my payments or constantly going over my limit, but neither of those are the case. I have a great job, making $ XXXX a year, and that is not including my spouses income. I am just confused by this entire situation.
Company Response: Closed with explanation
2016-01-23
Reidsville, NC
Account opening, closing, or management
Bank account or service: Checking account
Company Response: Closed with monetary relief
2016-01-23
San Antonio, TX
APR or interest rate
Credit card:
Company Response: Closed with explanation
2016-01-23
Boston, MA
Billing statement
Credit card:
Complaint: For five years I have never been late on a payment with the merchant. The company, despite receiving returned emails and messages that my phone numbers were no longer in service reported me to the credit agency for my delinquency. The FIRST time the company contacted me by physical mail on XXXX/XXXX/16 I immediately contacted the company and offered to pay the full amount of my bill off but inquired with XXXX XXXX in the CMA department why they did not send the physical mail to me before reporting me as delinquent despite knowing that my emails and phone numbers were both coming back as not being in service. For a simple cost of a stamp my credit would have been saved and I would have paid instantly. My credit took a XXXX point hit for an trivial balance that I would have paid if I had any knowledge of any outstanding balance. The company charged usurious interest rates + late fees of over 350 % APR on this balance.
Company Response: Closed with explanation
2016-01-22
East Union, WA
Billing disputes
Credit card:
Company Response: Closed with non-monetary relief
2016-01-22
Leeton, UT
Closing/Cancelling account
Credit card:
Complaint: I was recently divorced and assumed full liability for a joint Discover Card account that my ex-wife and I have. I am the petitioner and the divorce decree states that " The petitioner will assume and pay and hold the respondent harmless '' for the Discover Card and other joint debts. I called Discover to ask them to remove her from the account, which still has a balance and they refused. They offered to establish a new account in my name but they would not transfer the balance from the joint account. The balance is reported monthly to the credit bureaus for both my ex-wife and I, and thus it shows my former wife is liable for the balance when in fact she is not. How can this be acceptable under the Fair Credit Reporting Act where it requires creditors to report accurate information? If my ex-wife is legally not responsible for the debt, then why can Discover, and other creditors, continue to report it as such?
Company Response: Closed with explanation
2016-01-22
CT
Account opening, closing, or management
Bank account or service: Checking account
Complaint: I VIEWED A PROMO OFFER XXXX.THE PROMOTION STATED AFFILIATED OR PAID BY DISCOVER BANK TO PLACE THESE PROMOTIONS SO THEY CAN NOT BE DENIED BY DISCOVER BANK.THEY HAD A NUMBER OF PROMOTIONS AND THEY WERE NOT ALL THE SAME ON THE EXPIRATION DATES BUT I FOLLOWED THE FIRST EXPIRATION PROMO DATE.IT STATED THAT YOU COULD GET AS EXHIBITS SHOW, OF {$100.00} DOLLARS IF YOU OPENED A SAVINGS ACCOUNT AND DEPOSITED {$10000.00}.
THE OTHER STATED THAT IF YOU DID XXXX DIRECT DEPOSITS OVER {$250.00} IN SIXTY DAYS OF OPENING CHECKING ACCOUNT YOU WOULD GET A BONUS XXXX.THE EXPIRATION ON THIS PAGE WAS XXXX XXXX, XXXX BUT OTHER IDENTICAL PROMOS HAD XXXX/XXXX/XXXX? AND SAME OTHER TERMS.
ABSENT FROM ALL THESE PROMOS WAS ANY WORDS YOU COULD NOT ALREADY HAVE A CHECKING ACCOUNT, WHICH I DID, AND YOU COULD GET THE HIGHER BONUS IF YOU HAD A CREDIT CARD WITH THEM AND I DID.I LIKE TO CLARIFY AND MAKE SURE I AM ELIGIBLE FOR ANY AND ALL PROMOS AND COPY EVERY PAGE AND ALWAYS CONTACT THE BANK SO I AM FOLLOWING DICOVER BANKS EMPLOYEE APPROVAL OR DENIAL THAT I AM ELIGIBLE.WHEN I CONTACTED DISCOVER BANK I SPOKE TO AN EXTREMELY NICE EMPLOYEE THAT KNEW THE EXACT PROMOTIONS I WISHED TO CLARIFY.SHE WAS AWARE THAT I ALREADY HAD A DISCOVER CHECKING ACCOUNT AS SHE COULD SEE IT ON HER COMPUTER MONITOR.I ASKED HER IF I WAS QUALIFIED FOR THE XXXX BONUSES .SHE STATED YES AND SHE WOULD CLOSE MY CHECKING ACCOUNT AND I COULD OPEN A NEW ONE.IT IS SHOWN CLOSED BY HER ON AN EXHIBIT..I THEN PROCEEDED TO OPEN A NEW CHECKING ACCOUNT AND SAVINGS ACCOUNT AND I FULLFILLED ALL REQUIREMENTS.AND HAD MY CODE AND BOTH ACCOUNTS OPENED.I WAITED AND WAITED AS IT HAD NO DATE FOR POSTING BONUSES. I CALLED ON OR ABOUT XXXX/XXXX/XXXX AFTER 3 MONTHS, AND A DISCOVER BANK EMPLOYEE STATED IT WAS TO LATE AS SHE TRIED TO CONTACT MARKETING, BUT SHE COULD SEE MY ACCOUNT THAT I FULFILLED ALL, IN HER WORDS ALL THE REQUIREMENTS AND SO THIS WAS XXXX EMPLOYEES THAT CONFIRMED ALL WAS DONE PROPERLY, AND SHE SAID THE BONUSES SHOULD HAVE BEEN POSTED ALREADY AFTER SHE DILIGENTLY CHECKED THAT I FULFILLED THEM ALL.SHE THEN STATED SHE WOULD REMIT AN EMAIL AND I ASKED IF I WOULD GET AN EMAIL AS TO WHAT THE PROBLEM WAS.SHE STATED YES.I NEVER GOT ANY RESPONSE SO CALLED AGAIN ON XXXX/XXXX/XXXX XXXX SPOKE TO A VERY BELLIGERENT AND IMPOSSIBLE EMPLOYEE TO DEAL WITH.SHE STATED FIRST THEY GOT NO NOTICE I USED THE LINK, SO I AM NOT ELIGIBLE FOR ANY BONUSES PERIOD.THEN SHE STATED I WAS NOT ELIGIBLE AFTER I TOLD HER I USED THE LINK. I COULD SEND WITH DISCOVER BANKS PROMOTION AND A SCREENSHOT OF THE LINK I USED.THIS WAS BECOMING A GREAT BIG EXCUSE MAKING EXPERIENCE THAT WAS GOING NOWHERES FAST.
NOW, I GIVE CREDIT WHERE CREDIT IS DUE.I HAVE HAD A DICOVER CARD FOR 20 PLUS YEARS .I ALSO HAVE A CD OVER XXXX XXXX XXXX IN DISCOVER BANK FOR TEN YEARS ALONG WITH OTHERS OVER THE YEARS.FACT IS ALL THAT TIME THEY HAVE BEEN EXTRAORDINARY AND THE BEST CUSTOMER SERVICE OF ANY BANK I HAVE EVER ENCOUNTERED, UNTIL NOW XXXX.I WAS QUITE SHOCKED AT THE VERBAL, WHAT I CONSIDERED ABUSE, AND EXCUSE MAKING AND KICKING THE CAN DOWN THE ROAD TO DISCOURAGE ME.BUT THIS TACTIC IS NOT NEW TO ME AT ALL, AS TO MANY BANKS HAVE DEVOLVED INTO THINKING RULES AND LAWS APPLY TO OTHERS AND CUSTOMERS BE DAMNED. I TOLD HER DISCOVER BANK IS RESPOSIBLE FOR EMPLOYEES WORDS AND ACTIONS AND SHE SAID NO THE PERSON MADE AN ERROR, IN FACT XXXX DID NOT MAKE ANY ERROR AS THEY STATED.SHE THEN TRIED TO MAKE ME FILE A COMLAINT WITH DISCOVER WHICH I TOLD HER WAS LIKE PLACING THE FOX IN CHARGE OF THE CHICKENS. I DID FILE THE THING SO SHE COULD NOT SAY I REFUSED.I ALSO TOLD HER DISCOVER BANK IS ALSO RESPONSIBLE TO TRAIN PROPERLY SO CUSTOMERS CAN GET CLEAR AND CORRECT INFORMATION FOR CUSTOMERS.THEY HAD MY MONEY AND THEN THEY DECIDE HOW CAN THEY CONVINCE YOU DID NOT QUALIFY AND NEVER ALERT YOU EITHER.THEN ARGUE AND MAKE EXCUSES INTO XXXX. SCAMS NEED TO STOP AS THE PUBLIC IS FED UP.
Company Response: Closed with monetary relief
2016-01-22
Temperanceville, VA
Account opening, closing, or management
Bank account or service: Checking account
Complaint: I signed up for a Discover Bank checking account using promo code : XXXX to receive a {$300.00} bonus. I fulfilled all the requirements outlined in the fine print and Discover said it was a target promo only open to a few people. It did not state this anywhere on the promo page when signing up for the promotion. I was already a Discover credit card member and it allowed me to apply the promo to my account. Here is the fine print of the deal which I completed every aspect including the direct deposits needed and I am a current Discover credit cardmember.
" Open to current Discover credit cardmembers or deposit customers, excluding current or previous CashBack Checking customers. Account is subject to approval. To receive {$300.00} bonus : 1 ) account must be opened between XX/XX/XXXX-XX/XX/XXXX using offer code XXXX ; and 2 ) at least XXXX Direct Deposits of {$250.00} or more must be received within 90 days of account funding. Direct Deposit transactions are limited to : payroll, Social Security, pension, and government benefits. Bonus will be issued as a credit to your account within 30 days of completing all requirements. Account must be open when bonus is issued. Limit XXXX per customer per account. Bonus is considered interest and will be reported in IRS Form XXXX. Offer may be modified/withdrawn without notice. " In XXXX message I had a representative confirm I will be getting the bonus on XX/XX/XXXX. After the day past I inquired again about the bonus and another rep told me I will no longer be getting the bonus.
Company Response: Closed with monetary relief
2016-01-21
Foy, CA
Credit line increase/decrease
Credit card:
Company Response: Closed with non-monetary relief
2016-01-21
Newnan, GA
Forbearance / Workout plans
Credit card:
Complaint: I contacted Discover credit card regarding my monthly payments. I attempted several time to speak to someone who can assist me in lowering my payments.I first spoke to XXXX who stated that Discover Card can only lower the interest rate to 12 % for a year while my payments would still be {$110.00} month. I explained to her that I was going through hardship and that {$110.00} would not be feasible at this time. She stated, when I opened the account I agreed to make my payments. I stated, that is correct however I am not making the same income as I did when I first opened the account. XXXX stated, that 's the only assistance that Discover can do for me. Later, that evening I contacted Discover card again having to wait 25 minutes before a customer service manager pick up the phone. I spoke to XXXX and explained my situation to her. XXXX told me that my monthly payments would be {$130.00} month with a lower interest rate at 12 % with my card being suspended. I asked to speak to her supervisor but after waiting 10-15 more minutes the phone hung up on me.
I have been a card holder with Discover since 2006. I am very disappointed in the treatment I have received. I really need some sort of assistance.
Company Response: Closed with non-monetary relief
2016-01-21
Grosse Ile, MI
Other
Credit card:
Complaint: This complaint involves XXXX companies that each claim innocence. They each tell me to talk to the other company and none offer any method to resolve the issue The companies are Discover Financial services, XXXX and XXXX XXXX XXXX XXXX XXXX. Specifically ; Discover Financial Provides me My XXXX score and an explanation for any change as follows ; Your XXXX Credit Score is based on your XXXX credit report using the XXXX Score XXXX.
The " problem '' is that that after months of having a XXXX score at or near XXXX, my XXXX score dropped to XXXX as reported by Discover Financial Sevices. The Credit Card offers a free XXXX score updated monthly. Discover, shows the reason for this decrease is : " 1. PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH The balances of your non-mortgage installment loans ( such as auto or student loans ) are high compared to your original loan amounts. As you pay down your loan your balance decreases, which reduces the proportion. '' The key to the above statement is " NON-MORTGAGE installment loans ''. are HIGH.
In reality, the only financial activity that I was involved in was a refinancing of my HOME Mortgage. In fact, the action was to refinance an existing balance at a reduced interest rate with no cash out. Bottom line is that there was no change in outstanding debt, the only change was a debt that is now 100 % of the " new '' mortgage balance as compared to, approximately 75 % of the " old '' mortgage original loan. REMEMBER ... the debt amount is exactly the same! Also remember that this is MORTGAGE debt ... Not the " non-mortgage debt '' as referenced in the Discover Card explanation for change ( decrease in score ).
Upon discussion with Discover, they directed me to XXXX, who can not /will not explain the change and they blame XXXX as they are the company who determines the score.When I discuss the problem with XXXX they in turn blame XXXX who provides the data for the XXXX score determination.
So as a consumer, I am directed into a XXXX way loop of blame, Discover blames XXXX who blames XXXX XXXX ... who blames XXXX. I have experienced a significant change in my XXXX score that is unwarranted. The fact is, that by refinancing at a lower rate, I have lowered my monthly payment, which in fact ( common sense ) should improve my credit score. There is a significant problem in either XXXX '' s classification of Debt type or in XXXX formula for XXXX score determination. This case shows that consumers who refinance could and some cases will experience a significant decrease in their FICO score, which in turn can have a significant negative impact on future borrowing costs
Company Response: Closed with explanation