Consumer complaint received 2023-08-20
Company: DISCOVER BANK
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
After wasting hours politely talking with several different Discover Card supervisors on XX/XX/23 about astonishingly high rates for a balance transfer that I was set to repay on that day, and which I presumably can not now without waiving my rights, I hereby submit this complaint. Please note the attachment preceded by my additional comments : More generally, I mention the following : Discover Card entices folks to use a balance transfer check from them and then when one does and subsequently sees how expensive the transaction actually was, Discover tells them that the check was used in such a way ( online, for example ) that it's actually a cash advance. So instead of one 's getting the promotional rate, one gets ripped off while Discover claims that its choice of legal forum agreement was actually agreed to ( even when it wasn't by the astonished consumer ). 

Meanwhile the inflated rates for a cash advance apply despite balance transfer assurances made on the conspicuous documentation on the sheet containing the actual balance transfer checks that are merged together with " interest and fee information ''. The inflated rates apply also despite the front of the promotional sheet that may or may not have been included in the envelope with the promotional checks, too. On the back of that alternative sheet though ( not the one including the checks ) there's fine print buried within a large paragraph saying if one uses the transfer check in other than paper form, cash advance rates apply. So instead of 0 % interest for a year and maybe a 4 % transfer fee, like one had bargained for, one finds that one 's been surprisingly billed around 30 % annually plus a significant start-up fee. Meanwhile one 's reliance damages grow, too. 

Discover profits from the deception while claiming it's not deceiving, and while expecting surprised consumers not to sue them in their state pursuant to their consumer protection laws. It's not the first time that Discover has violated consumers ' legal protections. Your office has previously taken action against Discover. For example : https : //www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-settles-with-student-loan-servicers-discover-bank-the-student-loan-corporation-and-discover-products-inc-for-violating-a-bureau-consent-order-and-other-unlawful-practices As for the attachment : Pages 1 & 2 are of the front and back of the envelope that I received in the mail with Discover 's so-called promotional offer. Nowhere is the cash advance risk mentioned. Why not? Meanwhile : Pages 3 & 4 are of the promotional checks. There were four. Page 4 has redundant copies of checks 3 & 4, along with the " Interest & Fee Information '' beneath them. Please note that pages 3 and 4 are actually the same elongated page. Do you see how nothing at all is included there regarding how Discover can quietly morph its balance transfers into exorbitantly expensive cash advances that one discovers the hard way? Why is that? Anyhow the same goes for all pages except the final page ( 8 ), a back page where a brief advisory is buried as fine print within a paragraph. That's what page 8 is, just a back page that one doesn't even notice. Furthermore : Pages 5 & 6 are the blank sheets that appear on the back of the checks and the abovementioned information page ( i.e. pages 3 & 4 ). Notice the lack of any warning or advisory about cash advances? Given those two sheets ' blank status, why would anyone even think to look at the back page of 7, which just reiterates the promotional information? And why isn't Page 8 's tiny little advisory mentioned conspicuously ( or even at all ) anywhere at all on the other 7 pages? They are not.

ANSWER : Because profits are greater when such surprises happen and folks believe Discover when it tells them they waived their right to a trial in their home state, much less a jury trial. Discover has no such waiver from me but I want to share this information with CFPB so it can try to help folks who are similarly misled by Discover. How can we make enough money to pay our taxes and try to help pay down the national debt ( XXXX XXXX XXXX ) when we get tripped up with surprise traps like Discover 's? 

We consumers don't have time for these distractions from our supposed allies. I had alternative credit card offers I could have used, and even more affordably than Discover 's promotion ( not to mention its exorbitant cash advance fees which, in my case, amount to a XXXX digit sum ). Furthermore, now I presumably can't pay down the rest of my debt hosted with Discover ( not to mention with my own funds, which I have, instead of a balance transfer check, which I don't need to use ). I can't make a payment without paying the inflated amount and all but waiving my rights to recover it later ( per the accord & satisfaction doctrine ). 

I spoke politely with several different Discover employees about this surprise and their ultimate definite conclusion was that I am out of luck. How can they justify the punitive fee? It's not like using the check one way instead of the other to transfer a balance costs Discover significantly more, if at all. It's certainly not like that ( reasonable and even encouraged ) approach warrants cash advance fees and compound interest. 

It's not fair to honest credit card companies to let their competitor Discover get away with this. Please take action.

Company response to consumer: Closed with monetary relief