Complaint Review: Discover Card, Discover Finanical Services - Riverwoods Illinois
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- Author Confirmed
- Discover Card, Discover Finanical Services 2500, Lake Cook Rd Riverwoods, Illinois U.S.A.
- Phone: 847-317 9480
- Web:
- Category: Financial Services
Discover CardDiscover Card, Discover Finanical Services interest on late payments, 28.99% on purcashes, 54.27% cash advances Riverwoods Illinois
*Consumer Comment: Cash advance interest rate.
*Consumer Comment: Doing something about loan sharks
*Consumer Comment: Doing something about loan sharks
*Consumer Comment: Doing something about loan sharks
*Consumer Comment: Doing something about loan sharks
*UPDATE EX-employee responds: Quick Response
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I did not ask for a Discover Card, when I received one with my name and account number, some years ago offering $10,000 with very low interest rate. They claimed that in a research I came with high credit rating, hence their offer.
The credit line was never used to the maximum. Admittedly, I am guilty of occasional oversights when payment was due. Beyond my control, this was mainly because of frequent admissions into the ER with heart and related ailments. Having said that, I, as a matter of reducing my debt, I paid for my purchases (mainly for medications and gas) plus finance charges, and some more. However, the debt did not seem decline, but was on the increase. The interest rate charged was also increased. The customer care representative explained that was because of delayed payments in the past. Discover card imposed penalties of $39 and 28.99%, whether the payment was posted a day or five days later, no matter the how much was the minimum payment. I reckon that these penalties plus the finance charges represented an annual rate of nearly 40% on the balance outstanding.
Health wise, it is advisable not allow oneself to get upset, as it would raise my blood pressure and raise glucose levels in my blood, hence I let it that ride until I am able to tackle the matter without much emotion.
Due current market conditions, I needed a short $1,100 in May 2008, being under the impression that this cash advance would carry 5.9%, as per account transfer offer I received in March/April. Perusing Discover Card May statement, I felt a jolt to note that the cash advance carried and annual rate of 54.27%. I immediately arranged for the payment of the amount of the cash advance, and called the toll free number to inform Discover Card that the amount I posted is meant to cover the cash advance, the finance charges, and some of the purchases. The customer care representative, who carries no powers to remedy a complaint, informed me that the cash advance is the last amount to qualify for settlement, and any payments made or will be made shall be considered on account of the purchases and accrued finance charges. Furthermore, I was told that she, customer care rep, she has no power to make any adjustment; the only thing she could offer is to send me a form requesting a review of the rates. Meanwhile, the rates will remain as they are, despite objections.
I let few days pass and called customer care, this time I asked to speak to a senior manager. I was put on hold for a long time, and then I argued with a repetitive stationed in Bangalore, India. Having been unable to get with him, I asked for the name and address of the person in charge of customer complaints in the corporate office. He claimed he does not have the authority to comply with may request, so informed him that I shall be recording the conversation as proof in the event of legal. The conversation ended and the call was transferred to a supervisor who refused to give me the information, I reminded her that the conversation was being recorded, she said that was against here wishes and terminated the conversation.
I cancelled the payment; I ran research for the address of the corporate board of governance, in Reverwoods, IL. I wrote to the president's office informing Discover Card of suspending all payments, until such time that we can reach an amicable solution to rates more in line with the Federal Reserve rate. Failing that, I indicated that Discover Card has to take legal action to recover the outstanding balance. At the same time I sent a complaint against Discover Card with Florida Division of Consumer Services, a copy was sent to Discover Card.
Can anybody any suggestions to protect the public from loan sharks in the guise of respectable international financial institutions.
Lietonian
ORLANDO, Florida
U.S.A.
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This report was posted on Ripoff Report on 06/22/2008 05:32 PM and is a permanent record located here: https://www.ripoffreport.com/reports/discover-card-discover-finanical-services/riverwoods-illinois/discover-carddiscover-card-discover-finanical-services-interest-on-late-payments-2899-342971. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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#6 Consumer Comment
Cash advance interest rate.
AUTHOR: Nikki - (U.S.A.)
SUBMITTED: Monday, July 14, 2008
John was right, but I want to re-iterate about the cash advance rate. Whenever you take a cash advance, your cash advance fee, plus the going cash advance interest rate are lumped together. Therefore your cash advance rate for this month ONLY came out to 54.27%, which again is your interest rate plus the fee.
Example: If you took out $1100 say 10 days ago and the regular cash advance interest rate is 28.99%, that would be a finance charge of around $8.80. If they charged you 5% cash advance fee, that would be $55. The $55 plus $8.80 equals an ANNUAL rate of 54.27% that the cash advance cost you this month. That would be for only the month you incurred the cash advance fee. Next month, you will probably see a 28.99% rate again for a total finance charge of around $27 (or however much their cash advance percentage rate is).
My numbers are not exact since I do not know when you took out the cash advance, or the cash advance interest rate, or the cash advance fee, but they are probably close.
#5 Consumer Comment
Doing something about loan sharks
AUTHOR: Readallaboutit - (U.S.A.)
SUBMITTED: Monday, July 14, 2008
Go to this link and chime in. I agree with the fellow above pay it off now and be done with it this company is notorious for holding debts FOREVER till they are worth pursuing legally which in itself should be illegal. The federal reserve is trying to change things so go read and chime in.
http://www.federalreserve.gov/newsevents/press/bcreg/20080502a.htm
#4 Consumer Comment
Doing something about loan sharks
AUTHOR: Readallaboutit - (U.S.A.)
SUBMITTED: Monday, July 14, 2008
Go to this link and chime in. I agree with the fellow above pay it off now and be done with it this company is notorious for holding debts FOREVER till they are worth pursuing legally which in itself should be illegal. The federal reserve is trying to change things so go read and chime in.
http://www.federalreserve.gov/newsevents/press/bcreg/20080502a.htm
#3 Consumer Comment
Doing something about loan sharks
AUTHOR: Readallaboutit - (U.S.A.)
SUBMITTED: Monday, July 14, 2008
Go to this link and chime in. I agree with the fellow above pay it off now and be done with it this company is notorious for holding debts FOREVER till they are worth pursuing legally which in itself should be illegal. The federal reserve is trying to change things so go read and chime in.
http://www.federalreserve.gov/newsevents/press/bcreg/20080502a.htm
#2 Consumer Comment
Doing something about loan sharks
AUTHOR: Readallaboutit - (U.S.A.)
SUBMITTED: Monday, July 14, 2008
Go to this link and chime in. I agree with the fellow above pay it off now and be done with it this company is notorious for holding debts FOREVER till they are worth pursuing legally which in itself should be illegal. The federal reserve is trying to change things so go read and chime in.
http://www.federalreserve.gov/newsevents/press/bcreg/20080502a.htm
#1 UPDATE EX-employee responds
Quick Response
AUTHOR: John - (U.S.A.)
SUBMITTED: Friday, July 04, 2008
Just to give some quick info on Discover Cards policies (and not stating if who is right or wrong in this case or anything, this is for information purposes only).
1) Late=higher interest rate. Adjustments will be made if it is not normal for one to be late, however 3 late payments in 12 months SHOULD (sometimes it will get more) only get one adjustment. Basically if you miss 25% of your payment due dates, it is not out of the usual. If you only had a few late payments, it should have been adjusted, but the interest rate is where it should be also (and that does include any health related issues, though it is unfortunate there have been some health issues you have had, Discover must still treat every late payment the same.)
2) Cash advance is usually at a higher rate then purchases. However, 54% is not the annual rate. There is a cash advance fee imposed whenever a cash advance is taken. It is 5% of the cash advance amount. Because it is a fee related to that charge, Discover is required to show it under the cash advance finance charge section and compute it in the rate section. If you look at the next month, it will show the actual rate you are paying. So basically, if it took you a year to pay it off, and the cash advance was at 28.99..(heck, we will say 30% just so I can keep my math easy as I prefer rounder numbers lol) so 30%, and you were charged a 5% fee upfront, you will pay approx 35-37% (compounded fee there).
3) All payments are applied to balance transfers, then purchases, then cash advances. That is the way the agreements are set up and nobody will/can over ride that.
4) I understand you are upset about the card, however you can not notify a company you are suspending payments until agreement can be reached.......basically you do that and the company says...ok.... Then when the payments do not start coming in, they report you late to the credit bureau as being late and more late fees are placed on the account. It continues and the company will revoke the account and report it to the credit agencies that the account was closed at creditor's requests...kinda the credit card version of repossesion or foreclosure (and this is true even if you closed your account prior...it is kinda a Cardmember has become such a high risk we refuse to even consider continuing business on this account kinda status). If it continues you MAY get a settlement...and if you take that their are tax consequences, credit issues that follow as well. Or they will forward it to a lawyer/other company (sell the debt) and be done w/ it or take you to court and get garnishments/liens, etc.
That is just some info on what I suspect might happen and are things that did/do happen. My best recommendation if you do not want to maintain that debt is to pay it off. Either with savings or contact a company you like more and request a balance transfer rate. Keeping the money and refusing to pay expecting them to actually bend to your demands are fruitless (late customers bring in TONS!!!! of money....so in reality..you are helping them and them making consessions are kinda self destructive to their prosperity). Hope I have given some info and good luck in anything you decide.
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