Consumer complaint received 2021-11-01
Company: DISCOVER BANK
State: TX
Product: Payday loan, title loan, or personal loan
Sub-product: Personal line of credit
Issue: Getting a line of credit

Complaint:
I called Discover to apply for a home equity line of credit. The representative asked for my name, social security, home address and the value of my home. Which I provided. The she asked me for my race and gender which I reluctantly provided. I informed her that the value of my home was between {$370000.00}. After providing my information she put me on hold. Then moments later she returned and told me my loan application was denied. She alleged that my home was valued {$340000.00}. I informed her that the value she quoted was wrong. I then disclosed that I had two certified appraisals with my home valued at {$370000.00}. She put me on hold then when she came back on the phone. She stated that Discover policy states all appraisals for the State of Texas have to be done from inside the home. I then asked her why she had not adhered to Discover Policy. Her response was vague at best. Then she continued by telling me that I wont qualify because my debt to income ratio was too high and that she would have to deny my application. She made mention of a XXXX loan that was on my credit. She continued that my income to debt ratio was over by about {$40000.00}. I informed her that the XXXX loan had been paid off and asked if she would be willing to put my application on hold to give me time to submit supporting documents from XXXX. I also asked her if paying off my house which would better my chances. She stated that paying off my house was no guarantee for approval. I then asked if she could place my application on pending status to give me time to submit proof of payment from XXXX. She refused insisting that application would have to be denied. I asked to speak to her supervisor. When they supervisor came on the line. I informed him that I needed time to provide the XXXX document and all the other documents which I knew would be needed to complete my application. I suggested that I can provide the XXXX documents along with other documents ( paystubs, home mortgage, insurance ) which are the norm for all home loans. The supervisor agreed. When I informed the supervisor that I was uncomfortable working with the representative who transferred me to him. The supervisor glossed over my discomfort as a mistake. I informed him that it almost seems like the representative 's knee jerk reaction was to deny my application without do her due diligence. I asked the supervisor if it was Discover policy to deny an application from the State of Texas without an interior appraisal he replied no. I then asked him why my application had been denied prematurely he didn't have an answer and repeatedly tries glossing over my concerns as a big misunderstanding. I then informed the supervisor that it seems applications from people like me were not welcomed. I informed him that I thought such biased, prejudicial practices were ancient. I then asked for my application to be withdrawn. I also demanded that the hard inquiry that Discover had placed on my credit report be removed immediately. He indicated that I provided verbal consent for my credit to be pulled. I responded by telling him that I provided consent to be treated fairly not to be denied even before my application was complete.

Company response to consumer: Closed with non-monetary relief