• Report: #224042

Complaint Review: Discover Card

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  • Submitted: Wed, December 06, 2006
  • Updated: Thu, March 01, 2007

  • Reported By:oklahoma city Oklahoma
Discover Card
PO Box 30395 Salt Lake City, Utah U.S.A.

Discover Card ripoff, excessive, overcharging, duped, overlimit fees, Discover Credit Card, Salt Lake City Utah

*Consumer Suggestion: Usuary

*Consumer Suggestion: Usuary

*Consumer Suggestion: Usuary

*Consumer Suggestion: Usuary

*UPDATE Employee: Well...

*Consumer Comment: Sorry Derek

*UPDATE Employee: fees

*UPDATE Employee: fees

*UPDATE Employee: fees

*UPDATE Employee: fees

*Consumer Comment: Discover Card

*Consumer Suggestion: Lucy, I have a foolproof solution for you

*Consumer Suggestion: Lucy, I have a foolproof solution for you

*Consumer Suggestion: Lucy, I have a foolproof solution for you

*Consumer Suggestion: Lucy, I have a foolproof solution for you

*UPDATE Employee: Finance Charges

*UPDATE Employee: Finance Charges

*UPDATE Employee: Finance Charges

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I went online to pay Discover bill for this month. I found they had charged an overlimit fee of $39. I had paid minimum due amount and didn't understand why overlimit.

I subtracted minimum due from previous balance and came under limit so I called Discover. They said even though I paid minimum due that when added finance charges it made it overlimit. Now, she double talked on this issue. I asked her if that was the case why wasn't the minimum due higher in over to take care of it. She said they had no way of knowing what the finance charges were going to be so they couldn't do that. I said, "so, you can't but I'm supposed to mind-read and figure it out myself. She then went on to say that the finance charges are actually from the month before and that I should have some idea from what they were previously.

Now, if that's the case, they should be able to do the same thing. My guess is, it's another way of collecting additional fees from people. They know perfectly well that people will pay minimum due without thinking to double check the finance charges and will thus occur overlimit fees, late fees, etc., etc., etc.

Who does one write to complain about this sort of business?

Thanks

Lucy
oklahoma city, Oklahoma
U.S.A.

This report was posted on Ripoff Report on 12/06/2006 01:21 PM and is a permanent record located here: http://www.ripoffreport.com/r/Discover-Card/Salt-Lake-City-Utah-84130-0395/Discover-Card-ripoff-excessive-overcharging-duped-overlimit-fees-Discover-Credit-Card-224042. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 18Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Suggestion

Usuary

AUTHOR: Mark - (U.S.A.)

In regards to credit cards chargng 29%. Since I do not now, never have, and never will own a credit card, I feel I have the right to comment. My comment? Cut the card up. Don't spend the money unless you have it, and live below your means. Remember, all credit card compies are sleezy, and you can always tell when their customer service is lying, because their lips are moving.

Mark
Ft Worth Texas
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#2 Consumer Suggestion

Usuary

AUTHOR: Mark - (U.S.A.)

In regards to credit cards chargng 29%. Since I do not now, never have, and never will own a credit card, I feel I have the right to comment. My comment? Cut the card up. Don't spend the money unless you have it, and live below your means. Remember, all credit card compies are sleezy, and you can always tell when their customer service is lying, because their lips are moving.

Mark
Ft Worth Texas
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#3 Consumer Suggestion

Usuary

AUTHOR: Mark - (U.S.A.)

In regards to credit cards chargng 29%. Since I do not now, never have, and never will own a credit card, I feel I have the right to comment. My comment? Cut the card up. Don't spend the money unless you have it, and live below your means. Remember, all credit card compies are sleezy, and you can always tell when their customer service is lying, because their lips are moving.

Mark
Ft Worth Texas
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#4 Consumer Suggestion

Usuary

AUTHOR: Mark - (U.S.A.)

In regards to credit cards chargng 29%. Since I do not now, never have, and never will own a credit card, I feel I have the right to comment. My comment? Cut the card up. Don't spend the money unless you have it, and live below your means. Remember, all credit card compies are sleezy, and you can always tell when their customer service is lying, because their lips are moving.

Mark
Ft Worth Texas
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#5 UPDATE Employee

Well...

AUTHOR: John - (U.S.A.)

Well.....you may say it is good....however there is obviousally somthing pulling it down. The best way to put it (though I understand it does sound like we are big and dont care) is that with over 50 million customers...Discover Card obviousally is at the very least competitive with all other credit card companies. If Discover had such exuberant finance charges and fees compared to the others,I can garuntee you that number of Cardholders would be much smaller. If your feel your credit is great and you deserve a lower rate, then get a copy of your credit report and review it. Find what is going on with it. I recomend getting credit scores as well so that you will have all the information. Everybody is always so quick to blame the credit card company, but they are never willing to look at other options. Credit cards are an extremely competitive business and I garuntee you that unless there is a reason for a higher rate, any credit card will try to be competive (and please people, I get far to many calls from people stating they have a zero w/ other credit cards when they have a 15% w/ us, the truth is every credit card knows what rates are being charged. It is like argueing w/ 7eleven about having to pay 2.13 a gallon and stating conoco is only 2.00...one look out the window to the conoco across the street shows 2.12...dont lie, it just makes it harder to get what you want)
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#6 Consumer Comment

Sorry Derek

AUTHOR: John - (U.S.A.)

Your rhetoric stinks. Since you state, 28.99 is for disasterous credit, then my very good credit SHOULD warrant something in the teens. Your company has been gracious enough to give me a "break" at 20.99. Awful on any level.
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#7 UPDATE Employee

fees

AUTHOR: Derek - (U.S.A.)

Discover Card does not vary its fees by state. Discover uses Delware laws regarding interest and fees. We keep our fees in line w/ the norm for the industry. Further more, on an overall basis, while Discover is not the cheapest, we do keep apr lower then most in terms of max default rate.

Currently, the max is 28.99 (for accounts w/ hrrble history), some of the cards go as high as 35.99 from our competitors and others from high risk instatutions exceed that. Furthermore, where you use your card has no affect on rates and fees the credit card companies may charge.
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#8 UPDATE Employee

fees

AUTHOR: Derek - (U.S.A.)

Discover Card does not vary its fees by state. Discover uses Delware laws regarding interest and fees. We keep our fees in line w/ the norm for the industry. Further more, on an overall basis, while Discover is not the cheapest, we do keep apr lower then most in terms of max default rate.

Currently, the max is 28.99 (for accounts w/ hrrble history), some of the cards go as high as 35.99 from our competitors and others from high risk instatutions exceed that. Furthermore, where you use your card has no affect on rates and fees the credit card companies may charge.
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#9 UPDATE Employee

fees

AUTHOR: Derek - (U.S.A.)

Discover Card does not vary its fees by state. Discover uses Delware laws regarding interest and fees. We keep our fees in line w/ the norm for the industry. Further more, on an overall basis, while Discover is not the cheapest, we do keep apr lower then most in terms of max default rate.

Currently, the max is 28.99 (for accounts w/ hrrble history), some of the cards go as high as 35.99 from our competitors and others from high risk instatutions exceed that. Furthermore, where you use your card has no affect on rates and fees the credit card companies may charge.
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#10 UPDATE Employee

fees

AUTHOR: Derek - (U.S.A.)

Discover Card does not vary its fees by state. Discover uses Delware laws regarding interest and fees. We keep our fees in line w/ the norm for the industry. Further more, on an overall basis, while Discover is not the cheapest, we do keep apr lower then most in terms of max default rate.

Currently, the max is 28.99 (for accounts w/ hrrble history), some of the cards go as high as 35.99 from our competitors and others from high risk instatutions exceed that. Furthermore, where you use your card has no affect on rates and fees the credit card companies may charge.
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#11 Consumer Comment

Discover Card

AUTHOR: Di - (U.S.A.)

Just thought I'd let you know there is no usery law in Utah they can charge what they want and do that's why I don't use cards here. Sorry
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#12 Consumer Suggestion

Lucy, I have a foolproof solution for you

AUTHOR: Steve - (U.S.A.)

Lucy,

Although I too do not care for the way Discover Card does business, there is no real rip off here. These terms and fees are clearly listed in your cardmember agreement.

The first problem here is paying only the minimum payment. This is the first sign that you are in financial trouble, and really shouldn't be using the card.

Although you never said what your minimum payment was, I would suggest adding like $20 to it to avoid this situation. NEVER make only minimum payments! It will get you nowhere.

Good luck.
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#13 Consumer Suggestion

Lucy, I have a foolproof solution for you

AUTHOR: Steve - (U.S.A.)

Lucy,

Although I too do not care for the way Discover Card does business, there is no real rip off here. These terms and fees are clearly listed in your cardmember agreement.

The first problem here is paying only the minimum payment. This is the first sign that you are in financial trouble, and really shouldn't be using the card.

Although you never said what your minimum payment was, I would suggest adding like $20 to it to avoid this situation. NEVER make only minimum payments! It will get you nowhere.

Good luck.
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#14 Consumer Suggestion

Lucy, I have a foolproof solution for you

AUTHOR: Steve - (U.S.A.)

Lucy,

Although I too do not care for the way Discover Card does business, there is no real rip off here. These terms and fees are clearly listed in your cardmember agreement.

The first problem here is paying only the minimum payment. This is the first sign that you are in financial trouble, and really shouldn't be using the card.

Although you never said what your minimum payment was, I would suggest adding like $20 to it to avoid this situation. NEVER make only minimum payments! It will get you nowhere.

Good luck.
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#15 Consumer Suggestion

Lucy, I have a foolproof solution for you

AUTHOR: Steve - (U.S.A.)

Lucy,

Although I too do not care for the way Discover Card does business, there is no real rip off here. These terms and fees are clearly listed in your cardmember agreement.

The first problem here is paying only the minimum payment. This is the first sign that you are in financial trouble, and really shouldn't be using the card.

Although you never said what your minimum payment was, I would suggest adding like $20 to it to avoid this situation. NEVER make only minimum payments! It will get you nowhere.

Good luck.
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#16 UPDATE Employee

Finance Charges

AUTHOR: John - (U.S.A.)

High Lucy,
I am sorry the answer you recieved did not address the situaion at hand, and instead of resolving the situation it seems to have just given a sort of "it is in the Cardmember agreement" answer.

The first thing I want to address is the Ol fee. If there is not a history of such fees and especially of them being removed, I garuntee if you call the customer service number and inform them you were no aware the finance charges would be added to the account and then the overlimit fee would be assesed, it will be waived. If you happen to get a repersenitive that does not do this for you, I hate to say it, but just give a call one more time. If there is no history of fees on the account, there would be no reason for the repersentive to not waive it, just ask and it will be done.

Second I wanted to inform how the finance charges are assesed. Finance charges are calculated on daily, on the statements it is shown as the average daily balance. The minimum will cover the finance charges if there are no other charges on the account. However, if you wish to verify that with the included charges, the finance charges will be handeled, I would suggest signing up w/ Discovercard.com (it is free and the most convenient way to do this) and take your balance (we will say 1,000 for this example) your finance charge (14% for this case) and a calculator.

First, a rough estimate of the finance charges for the month would be 14/12=1.166% That is roughly the amount of finance charges that will be applied each month. Then take 1.166/100=.0166 (this is now in a fraction, instead of a percentage) Then take the 0.0166*$1000(blnce)=$11.66. There fore the finance charge will be approxmatly $12. That is not an exact figure, but it is very close. The fastest way to figure it would be to do the above with your credit limit (that will give the maximum finance charge, assuming it does not go over).

The overlimit fee is applied at the end of the cycle date (will show on your statement for you) if the account is over the limit. A small buffer is given in an effort to prevent overlimit fees for small instances. Currentally the buffer is 0.1% of your balance, however it is being increased to 0.5% shortly. But becarefull when counting this, as in a 1,000 balnce, the new 0.5% is only $5. I know it is small, but it is important to remember it is just a small buffer to help prevent dollar miscounts that could cost quite a bit in fees. I hope this helps, if any questions, please post back here and I will check back shortly.
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#17 UPDATE Employee

Finance Charges

AUTHOR: John - (U.S.A.)

High Lucy,
I am sorry the answer you recieved did not address the situaion at hand, and instead of resolving the situation it seems to have just given a sort of "it is in the Cardmember agreement" answer.

The first thing I want to address is the Ol fee. If there is not a history of such fees and especially of them being removed, I garuntee if you call the customer service number and inform them you were no aware the finance charges would be added to the account and then the overlimit fee would be assesed, it will be waived. If you happen to get a repersenitive that does not do this for you, I hate to say it, but just give a call one more time. If there is no history of fees on the account, there would be no reason for the repersentive to not waive it, just ask and it will be done.

Second I wanted to inform how the finance charges are assesed. Finance charges are calculated on daily, on the statements it is shown as the average daily balance. The minimum will cover the finance charges if there are no other charges on the account. However, if you wish to verify that with the included charges, the finance charges will be handeled, I would suggest signing up w/ Discovercard.com (it is free and the most convenient way to do this) and take your balance (we will say 1,000 for this example) your finance charge (14% for this case) and a calculator.

First, a rough estimate of the finance charges for the month would be 14/12=1.166% That is roughly the amount of finance charges that will be applied each month. Then take 1.166/100=.0166 (this is now in a fraction, instead of a percentage) Then take the 0.0166*$1000(blnce)=$11.66. There fore the finance charge will be approxmatly $12. That is not an exact figure, but it is very close. The fastest way to figure it would be to do the above with your credit limit (that will give the maximum finance charge, assuming it does not go over).

The overlimit fee is applied at the end of the cycle date (will show on your statement for you) if the account is over the limit. A small buffer is given in an effort to prevent overlimit fees for small instances. Currentally the buffer is 0.1% of your balance, however it is being increased to 0.5% shortly. But becarefull when counting this, as in a 1,000 balnce, the new 0.5% is only $5. I know it is small, but it is important to remember it is just a small buffer to help prevent dollar miscounts that could cost quite a bit in fees. I hope this helps, if any questions, please post back here and I will check back shortly.
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#18 UPDATE Employee

Finance Charges

AUTHOR: John - (U.S.A.)

High Lucy,
I am sorry the answer you recieved did not address the situaion at hand, and instead of resolving the situation it seems to have just given a sort of "it is in the Cardmember agreement" answer.

The first thing I want to address is the Ol fee. If there is not a history of such fees and especially of them being removed, I garuntee if you call the customer service number and inform them you were no aware the finance charges would be added to the account and then the overlimit fee would be assesed, it will be waived. If you happen to get a repersenitive that does not do this for you, I hate to say it, but just give a call one more time. If there is no history of fees on the account, there would be no reason for the repersentive to not waive it, just ask and it will be done.

Second I wanted to inform how the finance charges are assesed. Finance charges are calculated on daily, on the statements it is shown as the average daily balance. The minimum will cover the finance charges if there are no other charges on the account. However, if you wish to verify that with the included charges, the finance charges will be handeled, I would suggest signing up w/ Discovercard.com (it is free and the most convenient way to do this) and take your balance (we will say 1,000 for this example) your finance charge (14% for this case) and a calculator.

First, a rough estimate of the finance charges for the month would be 14/12=1.166% That is roughly the amount of finance charges that will be applied each month. Then take 1.166/100=.0166 (this is now in a fraction, instead of a percentage) Then take the 0.0166*$1000(blnce)=$11.66. There fore the finance charge will be approxmatly $12. That is not an exact figure, but it is very close. The fastest way to figure it would be to do the above with your credit limit (that will give the maximum finance charge, assuming it does not go over).

The overlimit fee is applied at the end of the cycle date (will show on your statement for you) if the account is over the limit. A small buffer is given in an effort to prevent overlimit fees for small instances. Currentally the buffer is 0.1% of your balance, however it is being increased to 0.5% shortly. But becarefull when counting this, as in a 1,000 balnce, the new 0.5% is only $5. I know it is small, but it is important to remember it is just a small buffer to help prevent dollar miscounts that could cost quite a bit in fees. I hope this helps, if any questions, please post back here and I will check back shortly.
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