Discover Card Payment plan ripoff Salt Lake City, Utah

I was paying 29.9% and did what was suggested by the ex employee.   Sounds simple, but I just stopped making payments.  Within 2 weeks, Discover Called and asked why I was behind and I told them that I was not going to pay them any longer because thier interest rates were too high.  They offerred to set me up on a payment plan at 9% interest which I also refussed.  Then they offered to put me on a payment plan for the remainder of the balance at 1% interest which I accepted.  My monthly payment has now dropped from $468 per month to $275 per month and the card is being paid off faster and I do not have to renegotiate the terms every year.  It did not affect my credit as it never even reached 30 days past due. 

Being a former business owner, and an ex-employee at Discover, I can sympathize with your delema. Most credit cards will intice business owners with great cash advance rates and amounts.  Many banks won't touch small business's with a cash loan untill after 5-10 years in business, and like you, we financed all up front start up fee's with credit cards untill the housing market collapsed.  After adding up the interest we paid to these creditors, it was close to what you paid.  Many other's do not realize the proffits these credit card company's make and the unfair tactics they use to make even more money to the unsuspecting public.  Unfortunatly, you can not sue them because everything Discover does is completely legal. 

I can tell you however how to better negotiate a lower rate, being that I am an ex-employee in the high risk managment department at Discover. 

One of the best negotiating tools when presented with thier offers is just to say NO to the initial rates they offer you.  This sounds simple in itself, but I can't tell you how many people give in to the first deal they hear when the rep offers an inticing 9.9%.  First off, you are right, 9.9% is just for ONE YEAR!  It doesn't matter that you pay your bill on time, called in to get help, or if you even paid a huge amount upfront to get this rate.  Now do the math-  the first year depending on your circumstances you may have saved $600 in interest rates for that year.  The next year it goes right back to the 28% default rate, which puts you right back where you were. 

So, the key point I need to stress, and the unknown secret that discover doenst tell you is that they train their call center people like used car salesman.  Any negotiations that go over too well for Discover goes right into the pockets of the call center rep. as a bonus.  You must say no to each offer untill all offers are almost exhausted, just like buying a used car.  Negotiate a 3 year lower rate at least 3% or less. They will tell you this is impossible, but if you refuse to pay them, believe me, it is possible.  If they won't do it, tell them to transfer you to someone who will.  If it still does not work, just don't pay them for 90 days and you will get the 3% rate or like some who really put the pressure on me, a whopping 1% rate for 3 years.  This is the only real way to make a dent in the interest you owe them for the past 10 years of dealing with them, and actually have a chance to pay off the card. 

The other best kept secret they don't want you to know is that any card that is past due, has what they call -COB.  COB is a certain amount of overcharged interest money and late fee's that are right there to be credited to your account at the reps discretion.  The more you say no to their lame offers the more you get back.  I have seen over $4000 right there in this special account that I could credit a customer back.  But all calls are monitored, so unless there is resistance, you can't give it to the customer.  Now, be carefull- they won't tell you outright of course, how much is in your particular account to credit, so you have to play the trial and error negotiation game with them. It will be to your benefit to do it, even if the phone call lasts for 2 hours.  I can not tell you how many people I could have given a $2000 or even $3000 credit on their account, if they would have just resisted my first offer. High retention reps actually gets all that money in this "cob" account that you fail to negotiate as bonus money in their paycheck.  Thats right- your money that should be refunded, if not negotiated in full goes in their pocket!  I know this, because I made an awfull lot of bonus money off of hardship accounts. So be persistant with them! 30 years of interest is an awfull lot of money.

   In response to the comments that charging 25 to 30% interest by Discovercard is alright if you were the one who made the charges.  First, I'm 62 years old and these kind of tactics from a credit card company were unheard of when I first started using credit cards.  They offer small percentage deals to get you to use thier cash advances, then jack up the interest rate when they think you are in over your head so they can collect thier ripoff interest rates and force people to lose thier homes and not be able to feed and provide for thier families.  To the person that said  "why don't you get a second job?", I already work about 12 hours a day, 7 days a week and am a minister also.  I live in Michigan where there is about a 30% unemployment rate (figuring in the people who no longer get unemployment benefits) and we have about 1 in every 5 homes in foreclosure.  My business grew every year from 1998 to 2008, then dropped in half in 2009 when the government stepped in to grant people money to start businesses to compete with me.  The one thing I am sure of is that when God steps in to seperate the sheep from the goats as described in Matthew chapter 25, the people at Discover will be most likely goats.  By the way, the goats do not go to h**l, they just have an an "everlasting cutting off" (cease to exist) (Matt25:46)

Yes I have also been doing business with Discover since 1991. I was late back in 1992 because of a residential move the statement was late coming to my new house. Back in those days I didn't have bill pay and was late on my payment.  I didn't mind paying the $35 because I knew it was issue on my side.  However since that "ONE" time bein late in 1992, Discover has been charging my account 28.99% each month. I don't care they charge that because I ALWAYS pay my credit card off each month. I have great credit. However recently I asked them to review my account to adjust my rate. They would not unless I wanted to fill out a credit application all over again. Are you kidding, I have an account with them already.. they know I pay each month and have for years and you want me to reapply to get a cheaper rate. And yet another twist I open accounts for my 6 kids with Discover and I am co-signer on each of the accounts and I pay their CC expenses. The kids CC rates are lower than mine. I have great credit and recently opened these accounts. However Discover will not assess an older account without me filling out paperwork again. They are STUPID!!! Discover is a JOKE! I have at least 8 other credit cards with rates in the 10.99% range so why would I waste my time reapply for credit with existing company that has been screwing me for years? And the terms and conditions on their site do not match what they charge customers. I am in process of moving my kids credit card over to MC or Visa. Discover doesn't care about older existing customers. Customer Service goes a long way with keeping companies in business, move on with the rest of us. Please "Discover" that Discover doesn't care about you.

I have been a Discover customer for several years. My account has never been delinquent and I always keep my balance below 30% of my credit limit. Your account is delinquent with a high balance. Why should you enjoy the same low interest rate that I have earned?

You want to file a lawsuit against Discover because they will not give you a lower interest rate on your delinquent account. In addition to that you have the audacity to write in the subject line that it's a rip off. You are in over your head on five accounts so you blame a lender. Grounds for a lawsuit require that you must suffer a loss at the fault of another party. Your losses are due to your own actions. Get a second job and pay your bills.

You are running a business.  Then at some point starting over 10 years ago you ran into trouble, and of your own free will decided to take out Cash Advances.  But you didn't do it on just one, but a total of 5 Credit Cards over time.

Then you have more problems, and expect the credit card companies to "help" you out again by reducing your payments.  Now, according to you 4 of these companies agreed to reduce your Interest rate and have done so for a 3rd year.  That's great and that is their choice.  But because the "evil" Discover Card won't you want to file a Class Action Against them.  Are you really serious?  Do you even have a clue on what it takes to get a Class Action going?  Perhaps you should think about doing other alternatives.

By the way I am sure you will go into "Well when I get through these issues these cards have earned my business by helping me out".  With some people that MAY be true.  But by your own posting this started 11(going on 12) years ago and it doesn't appear as if there is any end in sight.  So the odds of you being a customer in "good standing" with any of these creditors in the near future seems slim at best.