• Report: #220679

Complaint Review: Discover Financial Services

  • Submitted: Wed, November 15, 2006
  • Updated: Wed, September 07, 2011

  • Reported By:El Paso Texas
Discover Financial Services
Not Revealed By Discover, POB 30943 West Valley CIty,, Utah U.S.A.

Discover Financial Services, Discover Card, DiscoverCard Issue of False Card, Flase Number, Bait ande Switch Violation of Federal Contact Statutes, Liable Statements West Valley CIty, Salt Lake City, Wilmington Utah, Delaware

*Consumer Comment: A note to Discovercard

*UPDATE EX-employee responds: The Process

*UPDATE Employee: What did you expect Discover to do?

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Discover accepted a charge that was entered erroneously and without authorization after the card was closed and payed off. They were told to not accept any further charges and that no entity was authorized to submit a charge. Nonetheless they accepted a non authorized charge submitted in error from El Paso Fitness.

They created a new card and number and placed the false charge on it. They were informed in writing several times that no card creation was authorized. They were informed that El Paso Fitness was not authorized to charge anything to their card. The specific charge was protested as well as protesting the creation of a refused card. This was done in writing and sent to multiple addresses. They were informed in writing that I declined the card, Declined mediation, Declined and would not agree to any charge or service fee and declined any advertising by phone or any other means.

El Paso Fitness showed them the actual paperwork showing that I had requested a Mastercard be used that was unrelated to my Closed Discover Card. This in itself proved that the charge was in error. They ignored the written proof of their error. The written proof of El Paso Fitness's Error and the Specific request for no further charges to be accepted in my name under any circumstances.

The reason I did not want to do business with tDiscoverCard is because they defaulted on their original advertising to give me sky miles. This advertising is what induced me to accept the original card. They owed me 30,000 sky miles and instead said that they would only give me among various trivial things $300 at "Best Buy". The value of the substituted items was 20% or less of the value of the sky miles. Obviously, I was unhappy with this bait and switch.

After almost 2 years I am still waiting for a response to any of my 5 letters sent to the various addresses and several handwritten notes returned on their billing note.

Instead they started a parade of calls for and also specifically to sell various products. I sent several notes to stop advertising calls and also previously had placed my name on the no call list to all businesses per federal regulations.

They ignored every written contact and instead hammer called my answering machine for months on end with hundreds of demand calls for "their" $ 62.00. Meanwhile they decided to add finance charges and late payment fees as well as yearly card fees until they had racked up around $225.00. That seemed to be the magic number to turn it over to a collection agency.

They have been given a Vernon Act Notice of intent to Sue, but have continued to harass and persue this false claim.

On the other hand they have not repsonded to my Federal Claim of Phone harassment for people who are on the no contact list for advertising. They also have liable cdharges pending for reporting false charges that I have not paid. Since they are false and no service fees, late charges or card charges have ever been aggreed to, reporting this as bad debt seems in my simple mind to be liable (Slander in Writing).

They have not addressed the issue of the Bait and Switch on the sky miles. In Fact, they haven't addressed anything, because they don't respond to any correspondence except the protest of the charge. Unfortunately, they said the written evidence that El Paso Fitness was told to use a speicific Mastercard was somehow proof instead that they were told to use the defunct and closed Discover Card. Try to figure that one out without concluding that it was simply self serving dishonesty.

This case illustrates the brazen arrogance of this huge and apparently greedy company. This situation is one of the rare times that Federal Regulation ought to restrict such huge companies from creating refused cards and ignoring clear and concise correspondence. Eventually they will generate a false credit report if they haven't done that already. They currently owe me thousands of dollars from violations of state and federal law.

Discover Financial services has followed both deceptive and immoral business proactices as well as being a huge bully. I will fight them in court before they ever get a cent from me. They need a good class action suit for a billion dollars to wake them up from their greed induced slumber.

El Paso, Texas

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This report was posted on Ripoff Report on 11/15/2006 01:22 AM and is a permanent record located here: http://www.ripoffreport.com/r/Discover-Financial-Services/West-Valley-CIty-Utah-84130-0943/Discover-Financial-Services-Discover-Card-DiscoverCard-Issue-of-False-Card-Flase-Number-220679. 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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Updates & Rebuttals

#1 Consumer Comment

A note to Discovercard

AUTHOR: The Unknown Driver - (USA)

Do any of you idiots at DFS have any common sense when a false transaction is made? You have claimed not once but twice (on 2 different occasions) I had made charge at 2 merchants. (One of them being out of state. So much for the $9.99 I pay you monthly for identity fraud. This time I have provided you with my actual signature, and the sales stub showing a signature that wasn't mine. I was serious the other day when I told you I'd be canceling my card coming the closing date. I am just waiting for my new card from my bank to come, so I'll be rid of you once and for all.

After 23 years of being with you, I should have seen, after I read you were part of Morgan Stanley. Yep, how was once a part of Smith Barney, and who are now part of Citigroup. No wonder why your banks are in trouble. Because you employ incompetent people that do not know how to do their jobs.

Later and Good riddance.
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#2 UPDATE EX-employee responds

The Process

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

I would like to start off by saying that I apologize for any inconvenience you had while trying to settle the issue of a disputed charge. There is a difference between a fraudelant charge and a disputed charge. A fraudelant charge would be taken care of by the Discover, assuming it is indeed fraud, at no cost to you. If it is a dispute then you would have to open a dispute case. You are always encouraged to try to seek the credit from the company that has charged your account first.

Understand that when any charge goes through on any credit card, it is because the receipt has been sent to the credit card company for it to take away from your available balance.

Keeping that in mind, when you open up a dispute you are allowing us to act as an advocate on your behalf to the other company about the charge in question. When that company provides us with a credit for only the amount of the original charge, we then remove any finance charges and late fee's that accrued as a result of the disputed charge.

When this all takes place, no other account is created under the customers name. The best thing to do is to find out the date in which the account was created. Often times many of our customers have accounts associated with their name due to fraudelant charges, old accounts, or changing their accounts from miles to cash back, or old miles customers where we sent them an upgraded miles card at no extra charge with new numbers. Even so, it can also be easily cancelled out.

Any balances left on a credit card unresolved will be sent to our internal collections department when it becomes 30 days past due. After being past due for so long it is written off in our system where the balance will reflect zero and the account would be closed not eligible for reopen while the money owed would be sent to another company (selling the debt).

The company that is calling you now is a third party company not directly affiliated with Discover in which you would have to contact them in regards to the debt because at this point, discover can no longer see the debt nor make any changes to your past account because it has been closed.

I hope that this gives you some better insight on how the process works for both you and an existing or possible Discover card customer.
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#3 UPDATE Employee

What did you expect Discover to do?

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

As a credit card company we can not merely prevent charges by closing an account. I am betting it was a recurring charge from the Fitness center, and as such, we could not decline the charge. The account being closed does not negate the fact that thier was a contract set up w/ the Fitness Center, and because of that we are required to process the payment (as a third party, we can not break contracts). Now, not taking care of that for you is also easy to explain, you stated it yourself.

"The specific charge was protested as well as protesting the creation of a refused card. This was done in writing and sent to multiple addresses. They were informed in writing that I declined the card, Declined mediation, Declined and would not agree to any charge or service fee and declined any advertising by phone or any other means."

You declined mediation. well simply put, that is all Discover Card can do in this sort of case. Disputes are mediations, so you said you wanted to dispute the charge, but refused allowing us to mediate. in other words you would not let us dispute it for you. I would thnk it would be obvious, but NO company will remove a charge just because you state it should not be there. Discover does not have the money, when it shows on your statement, the company has been paid. As such, we will investigate the situation for you to determine whom we find liable to repay us.

El Pasos proof would be ignored. They billed to your Discover and you refused mediation. The only way for yourself and the merchant to correct it then is to have them issue credit to the account and then charge the correct card. They chargesd your old Discover, and regardless of what they said or you thnk in regards to discover putting it on w/o either of your authorizations, let me put it this way. 1) it did not show on your mastercard (Discover could not prevent that.), 2)Discover is either phsycic, or they charged us for it to show up on the statement at the time you made it, and for the correct amount.

Another thing I find intersting in this post is the statement that after 2 years we are still calling for $62, well, if you never paid that, it would have been charged off within 8 months of this. so I must assume that part, or all of this report is bogus as this in itself is completely false.

Also, if we sent it to an outside collection agency, then ofcourse the calls of kept coming in. After charging off and saling it, we no longer deal w/ bad debts. You have a completely differcnt company contacting you.

With all the above being so wrong. To be honest I have a serious doubt in regards to the 30k miles. You are blatenly lying or very ill informed in everything above, and therefore I feel it is very, VERY unlickly you can be trusted to know, or to tell the truth regarding the situation with your offer. And if we really did owe you thousands of dollars for breaking the law, I fail to understand why you have not collected on it. If it was such a clear and cut case, I garuntee you that you can find a lawyer that will take that case up. Just my 2 cents on the matter though.

To resolve, contact the company it was sold to, and see what they will do to settle.
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