Consumer complaint received 2020-11-24
Company: DISCOVER BANK
State: IL
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Need information about your loan balance or loan terms

Complaint:
Since XX/XX/XXXX I have consistently requested Discover, who in XXXX took over my XXXX XXXX XXXX XXXX for the proper documentation that shows the interest I agreed to with XXXX XXXX. Since XX/XX/XXXX, Discover has consistently refused to provide this documentation and have just recently hit my credit with three delinquent accounts and one charge off. I am now getting threatened by Discover that the last three accounts as charge offs and this will be on my credit for seven years. 
On or about XX/XX/XXXX, I received a message from Discover stating that your request to have a waiver or credit applied to your account has been approved. I never made such a request, so I called Discover to inquire about this message. I spoke to an agent who informed me that it was a credit for an overpayment of interest. I also inquired about the fact that I noticed that when interest goes down, by payments for whatever reason goes up. On XX/XX/XXXX, I never received anything in writing to confirm what that this was not my request. On XX/XX/XXXX, I composed a message on Discovers portal and memorialized the conversation that took place with a representative on XX/XX/XXXX, why the XX/XX/XXXX letter states that this was my request. I also requested that my account be looked further into, as in XX/XX/XXXX, Discover had taken upon themselves to put my account in deferment, when I never requested it nor agreed. I called immediately when I received notification and all was to be taken care, however, somehow their accounting showed that I never made a payment and added additional payments. I received a correspondence on XX/XX/XXXX, which for some reason stated that Discover determined an interest rate reduction applied to my student loan account that was inadvertently suspended and as a result a credit of {$21.00} was applied. 
As I was preparing for the bar and had little time to look further into this, I pulled out my promissory notes to look at the interest I should be charged and it states the following : " The " Variable Rate '' is the sum of the Prime Rate published in the XXXX XXXX XXXX under the " Money Rates '' section for the day which is 30 days prior to the first day of XXXX, XXXX, XXXX and XXXX of each year ( the " Index '' ) PLUS OR MINUS THE PERCENTAGE, AS IDENTIFIED ON MY CONDITIONAL APPROVAL LETTER THAT I RECEIVE WITH THIS NOTE, WHICH IS INCORPORATED INTO THIS NOTE, per annum ( the " Margin '' ), rounded to the nearest hundredth ( .XXXX % ), but in no event greater than the maximum allowed by New York law .... 



My Promissory Note that I signed with XXXX further states Entire Agreement : The terms and conditions of your Application, this Note AND THE CONDITIONAL APPROVAL LETTER constitute the entire agreement between you and me. THE TERMS OF THE CONDITIONAL APPROVAL LETTER REGARDING YOUR INTEREST RATE ARE HEREBY INCORPORATED INTO THIS NOTE. 

On XX/XX/XXXX, I called discovery requested this documentation. The below timeline goes into detail from XX/XX/XXXX to present of the numerous communications I have had since and my consistent effort to receive this documentation. To date, I have not received it. I have been told that this documentation does not exist ( XX/XX/XXXX XXXX Supervisor stated my promissory note was not even binding and that I would probably never receive the Conditional Approval Letter because it does not exist ). 
However, if this documentation does not exist, then how is Discover able to charge whatever interest they feel like, without any proof that I signed or agreed to the interest. My right to proof of documentation and an audit of whether or not the interest calculated is correct, has consistently been denied and ignored. However, since Discover refuses to provided me with such, they have decided to taint my credit and just Saturday place on account and threatening the other three in seven days with a derogatory mark on my credit as a charge off. 
My credit prior to Discovers claims, was a XXXX. Due to Discovers derogatory marks and delinquency claims, my credit has significantly dropped and now is a debt I have to claim on my character fitness. Discover should not be allowed to threaten and damage someones credit, when they are entitled to prove the documentation and audit that I have requested. If this should place a hold on my professional license, I will be seeking damages. 
I have the money to pay this off, and have no issue to pay in full, should Discover provide the documentation to show the interest I had agreed to and that a full audit shows what I actually owe. If I were to pay this off, and Discover has been fraudulently collecting the incorrect interest, I have no avenue to take to recover any overpayment. 
Without the conditional approval letter, according to my promissory note, which states that it is part of the entire agreement, Discover is fraudulently reporting a debt that they have no proof of and but for Discovers denial, it would not be delinquent. I have a right to an audit of my account and Discover refused to provide such, along with actual documentation that they are required to have in their possession, the conditional approval letter. Discover should not be allowed to strong arm their customers by tainting their credit because of their own denials a student loan customer is entitled to. 
Finally, I would like to recap the numerous times, as Discover seems to have no problem damaging my credit, especially as I wait my XXXX  results, but take no accountable for their failure to provide actual proof I have requested. I clearly had no issue paying this up and until Discovers refusal to provide the documents and their assignment papers. I will not pay a loan which Discover has been fraudulently collecting interest on. 
Timeline of communication and requests I have made with Discover since XX/XX/XXXX, and the documents are attached, just in case Discover states this is incorrect. This may not include all communications from XX/XX/XXXX and I have a right to supplement any communication that is missed in this timeline. If needed, I will also provide you with my phone records and actual notes from phone calls and discussions that are not incorporated in messages I sent to Discover through your system. 
- XX/XX/XXXX Spoke with XXXX and requested documentation of the conditional approval letter which states the plus or minus my interest should be from the variable rate. I was told he would need to look into this. 
- XX/XX/XXXX XXXX called my cellphone and stated that he was escalating the matter, as they will need to request this document from XXXX and that another department would be reaching out to me. 
- XX/XX/XXXX I sent a message through Discovers portal recapping my XX/XX/XXXX phone call with XXXX and that I was told a department would be reaching out to me. I never received a call and would like to be advise as to where the conditional approval letter was and that I would discontinue payment if I did not receive these documents within the next two weeks. 
o XX/XX/XXXX I received a response from Discover stating that they are working diligently to get needed documentation to me. 
- XX/XX/XXXX I called Discover requesting documents again. Spoke with representative for ten minutes. 
- XX/XX/XXXX I, again, sent a message through Discovers portal stating I was still waiting for the documents, as it has been over a month, and have not received them. 
o XX/XX/XXXX I received a response stating that Discover was currently processing my request and appreciates the patients. 
- XX/XX/XXXX I, again, sent a message through Discovers portal stating I have still not received the original documents I requested regarding the conditional letter which reflects the interest I agreed to. Now 44 days from the original date of request. 
o XX/XX/XXXX I received a response stating I was requesting relief related to Covid-19, which I was not. 
- XX/XX/XXXX I responded to XX/XX/XXXX response stating I was not asking for Covid-19 relief and requesting the documents I requested on XX/XX/XXXX. 
o XX/XX/XXXX I received a response apologizing the inconvenience and to allow them additional review and processing time. 
- XX/XX/XXXX I called Discover again to request the documents of the Conditional Approval letter. I was told that my interest was calculated by my credit score at the time I applied for the loan, which clearly is not what my promissory note states. I called again requesting for a supervisor and requested that my automatic payments be discontinued until I receive this information. 
- Discover sent out a correspondence dated XX/XX/XXXX stating that my auto payment was cancelled and that I will no longer received a .25 % reduction from interest. 
- Discover sent a correspondence dated XX/XX/XXXX stating the new repayment scheduling and showing interest rate for one loan at 5.750 % and for the other three loans an interest rate at 4.620 %. The money market rate at this time was 3.25 % - XX/XX/XXXX I received a response from Discover stating that they may adjust my interest rate on each XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, ( interest rate change ) based on the prime30 Index published in the money rates section of the XXXX XXXX XXXX. The variable rates are broken down by ( Prime30+margin=total rate ). Your margin is determined by the credit evaluation and always stays the same. The prime Index is currently 4.75 % and is subject to change quarterly. This is how your rate can fluctuate. 
o So there is a lot of misinformation just alone in this response from Discover. First their definition to margin is not at all what the promissory note states. Second, what prime index was 4.75 % in XXXX. The prime index has been consistent at 3.25 % since XX/XX/XXXX. I have no idea what Prime 30, but my promissory note Prime Rate as published in the XXXX XXXX XXXX under Money Market. Further, on XX/XX/XXXX just like promissory note states interest rate changes on these dates. Never changed. 
o Once I received this response and notice that the prime index rate that they state is incorrect, I stopped payment. I stopped payment until the conditional approval letter was provided and an audit occurred, as clearly by this message alone, there is inconsistent information communicated. 
- XX/XX/XXXX I sent a message through Discovers portal with an attachment of the terms and definitions of my promissory note. 
o XX/XX/XXXX Discover Responded stating that they did not receive the attachment. 
- On XX/XX/XXXX I called Discover starting at XXXX XXXX. with three phone calls made during that time requesting, again, my conditional approval letter. I was hung up on by two customer service representatives. Finally, the third representative XXXX took my information and stated that she would look into this and get back to me. 
o I also sent a follow up message in Discovers portal to memorialize my conversation with the representative. 
o On XX/XX/XXXX I received a call from XXXX who stated that another request was being made to XXXX, as XXXX has not provided Discover with the Conditional Approval Letter and that Discover has been requesting it since XX/XX/XXXX. 
- XX/XX/XXXX I received another response from Discover stating that they are unable to provide specific information regarding my student loan via e-mail and in order to assist me I must contact Discover directly. 
o I responded to this message again stating that I did contact Discover directly since XX/XX/XXXX for this information. It is now 115 days since I made my original request. 
XX/XX/XXXX I received another response from Discover stating that they are unable to resolve my concerns through the Secure Message Center. 
Discover correspondence with my promissory note was dated XX/XX/XXXX. No conditional approval letter was with the promissory note, despite it stating it is part of it. 
- A correspondence sent from discovered dated XX/XX/XXXX shows that one loans interest rate is now 4,25 % and the other three at 3.120 %. Reflecting a total 8 payments due. 
- XX/XX/XXXX I called Discover and again requested my Conditional Approval letter along with a copy of the Assignment that was made from XXXX to Discover. 
- XX/XX/XXXX - I received XX/XX/XXXX Promissory notes. 
- XX/XX/XXXX I spoke with XXXX XXXX, from XXXX XXXX XXXX who transferred me to XXXX who was a supervisor. I again, made the request and stated I have been waiting since XX/XX/XXXX, for this. 
- XX/XX/XXXX I sent another message through Discovers portal stating that I uploaded my promissory note which states the entire agreement and the document upload number. 
- A correspondence sent from discovered dated XX/XX/XXXX shows that one loans interest rate is now 4.750 % and the other three at 3.620 %. Again the prime rate was 3.25 %. This showed a total amount of payments left 8. 
o XX/XX/XXXX I received a response from Discover stating that they encourage me to contact them directly regarding my document. 
- XX/XX/XXXX, I called Discover and spoke with XXXX a manager in XXXX XXXX XXXX who stated the my promissory note was not binding but that the Final Disclosure was. I further was told that I would not be receiving the Conditional Approval Letter, as there was none. 
o I memorialized my conversation in a message to Discover through their portal right after. 
o XX/XX/XXXX I received a response from discover apologizing for the inconvenience this may have caused and to contact them directly again. 
- A correspondence dated XX/XX/XXXX was sent from Discover stating that they had not received payment for my loan. 
- A correspondence dated XX/XX/XXXX and another copy of my promissory notes were sent to mean. 
- XX/XX/XXXX I received Discovers correspondence and copies of my promissory note and called Discover. At which time I spoke with XXXX from XXXX XXXX XXXX. I, stated that my conditional approval letter was not included and that I making yet another request for it and for the assignment from XXXX to Discover. 
- A correspondence dated XX/XX/XXXX was sent from Discover with an updated payment plan which showed one loans interest at 4.750 % and anothers at 3.620 %. With five payments left. 
- XX/XX/XXXX I sent a message through Discovers portal stating that I have been requesting my Conditional Approval Letter since XX/XX/XXXX and still have not received it. 
o XX/XX/XXXX I received a response from Discover stating they have record of my concern but are unable to provide information regarding my student loan via email. 
- A correspondence dated XX/XX/XXXX was sent from Discover stating that Urgent Action was Needed : Charge Off Pending. 
- XX/XX/XXXX, I called Discover and spoke with XXXX from XXXX XXXX who stated he was making the request for the Conditional Approval Letter and the Assignment papers and that I should receive them within 7-10 business days. ( XX/XX/XXXX is when I would be receiving them ) - XX/XX/XXXX I received an email from Discover StudentLoansRA dated XX/XX/XXXX and I responded yet again stating that I have been requesting documents since XX/XX/XXXX. 
- XX/XX/XXXX A cease and desist email was sent to DiscoverStudentLoanRA to cease and desist from placing a charge off on these accounts and another request was made. 
- XX/XX/XXXX Another cease and desist email was sent to DiscoverStudentLoanRA to cease and desist from placing a charge off on these accounts and another request was made. 
- XX/XX/XXXX, which I was told by XXXX Discover would be sending out copies of the Conditional Approval letter would be received by. Nothing was sent from Discover. 
- XX/XX/XXXX, while I was on a XXXX meeting I received a phone call from Discover student loan representative that stated that a representative was looking to talk with me. Back in XXXX, I had sent Discover a Cease and Desist for telephone calls. When the representative was put on the line the representative asked why I was calling. I stated that I was not calling and that I was just told you wanted to talk with me. I stated that I have made numerous requests and that I am still waiting for these requests to be answered. I was told that I had no choice but to make a payment. I again explained that until an audit was done I was not making a payment. I then asked how a phone call was made to me when I specifically have a cease and desist. 
- XX/XX/XXXX, I received a message from XXXX XXXX that my account had delinquent accounts ( total of 15 ) along with a derogatory mark from Discover. That this derogatory remark would be on my credit report for seven years now. 
- XX/XX/XXXX I called Discover student loans at XXXX XXXX. and spoke with XXXX in XXXX XXXX XXXX who transferred me to his supervisor XXXX. I expressed my issues and concerns. I was informed that she sees the numerous requests and that to-date they all remain open. XXXX stated that she would be looking into this, along with request other supervisors. I agreed to communicate with XXXX and provided a written consent for XXXX to contact me with information relating to my requests and the delinquency and charge off that has been placed on my credit report. XXXX provided me with a telephone number XXXX. I was told that once I received a representative to request to speak with XXXX. I was informed of her work hours which are Monday through Friday XXXX XXXX to XXXX XXXX  XXXX XXXX XXXX. XXXX requested a time to reach Monday, XX/XX/XXXX, which we agreed to XXXX XXXX 
Discover is failing to provide the full promissory note with XXXX which this debt was originally with must show an audit of the interest charged to reflect the promissory notes language regarding interest. Should you need any further information please do not hesitate to reach me at XXXX or XXXX.

Company response to consumer: Closed with non-monetary relief