Consumer complaint received 2022-06-05
Company: DISCOVER BANK
State: MI
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
My mother made a payment on my account using an ACH authorization that was scheduled with a live agent on XXXX XX/XX/XXXX with a live agent. The authorized ACH was in the amount of approximately XXXX dollars. XXXX, the live agent scheduled the payment and provided my mother with the reference number XXXX. The payment posted and no payment reports as having been returned. However, on or around XXXX XX/XX/XXXX I received notification that my account had been automatically closed due to non-receipt to keep the account open. On or around XXXX XX/XX/XXXX I spoke with a live agent. The live agent informed me that no payment had been returned. However, he did allege that Discover did present the authorization for payment to the financial services institution, but the financial services institution replied to the ACH authorization with an error code indicating that no such account existed with the information as presented by Discover to the institution. My mother contacted her financial services institution or around XXXX XX/XX/XXXX. Her financial services institution stated that NO request for an ACH authorization from Discover had been made since XXXX of XXXX. That is, the financial services institution has no record of any ACH transaction request from Discover for XX/XX/XXXX, and as such there was never a reply to an ACH withdraw from the financial services account. Despite this, Discover has stated it is unlikely they will reopen my account even if the error is on their part and instead opted me to place me in a payment program that temporarily reduces interest rates. Moreover, program enrollment erquired me to allow pre-scheduled automated ACH authorizations that can not be cancelled or changed other than using a live agent. There is no ability to modify those payments online, even to change accounts. This is intentional as Discover has wagered it is more likely that payments will go through by providing obstacles to alter payment information. The account became delinquent because I have been XXXX XXXX XXXX XXXX XXXX XXXX XXXX- not because there was an inability to make payments. While I understand I am not blacklisted from reapplying for a new card, and appreciate the interest rate reduction program, the entirety of this situation seems to constitute an unfair practice under the CFPA, as I was never notified that the ACH transaction did not process for whatever the reason and therefore was never given the opportunity to cure the situation. In contarst, I have been given the opportunity to cure a returned payment, either by the system representing payment, or by me making a replacement payment online or over the phone. What's more it is my understanding that Discover has reported a missed payment for the month of XX/XX/XXXX and additionally reported that the account was closed by the creditor -- all because Discover 's system did not present the payment to the financial services institution as expected. As consequence, I was never able to exercise my due process rights pursuant to 12 CFR 1026.13. That is I was not able to exercise my right of notice and opportunity to be heard by filing a billing error notice BEFORE the system automatically closed out my account because I was never notified of any issue and Discover 's system reported the payment posted on or around XXXX XX/XX/XXXX. As consequence, the closing of the account, and the subsequent reporting of late payment and account closure to the CRAs would seem to constitute an unfair practice under 12 U.S.C. 5531. Finally, my payments became behind as I have struggled o communicate while XXXX XXXX XXXX XXXXXXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. In fact, my credit reports due not indicate periods of serious delinquency within the last seven ( 7 ) years other than a single thirty ( 30 ) day late payment for XX/XX/XXXX. That is, I continued to maintain the obligations after I first XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX of XXXX and struggled with XXXX from XXXX through XXXX, having XXXX XXXX XXXX XXXX in XXXX of XXXX. While I understand that credit scoring, credit modeling, and risk analysis never anticipated the far reaching changes that may come about as the result of a pandemic we are over two ( 2 ) years into the pandemic and it would appear financial services institutions have been entrenched in their desire to continue their usage of pre-pandemic risk exposure models to close accounts that, while perhaps unintentional, unfairly target individuals like myself who have struggled after XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Yet, if I needed to make changes to account information for any automated payment, I would be forced to endure pain My underlying condition is itself considered a XXXX under the ADA. XXXX is considered a XXXX under the ADA. XXXX  is considered to be a XXXX under the ADA. I don't think the totality of discrimination here could be any clearer, nor could the unfair practices be any more striking. I have filed a dispute internally with Discover. The Discover case number is XXXX.

Company response to consumer: Closed with explanation