Consumer complaint received 2018-04-05
Company: DISCOVER BANK
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
Dear Sir or Madam, I am writing you to file a grievance of Discovers mishandling of my checking accounts in an attempt to resolve suspected fraud. 

On XX/XX/XXXX, I received an email that my debit card PIN had been reset. I logged-in to my online banking to notice that someone had withdrawn {$400.00} from an ATM in XXXX, NE. I immediately called Discover and alerted their fraud department. ( enclosure DFS PIN Reset Confirmation ) I was told that a debit freeze would be placed on my account that would prevent further money from being taken out of my account. I was told that I could not open a new checking account and transfer my frozen funds until pending transactions had cleared. During this time Discover rejected an attempted debit for a XXXX credit card payment. ( enclosure XXXX Returned Pmt ) On XX/XX/XXXX, I called Discover again to check on the status of the pending transactions. A new checking account was opened, and funds were transferred from account ending in XXXX to the new account ending in XXXX. I was also told that a replacement debit card would be expedited, and new checks would be printed and mailed. It is my understanding that after transferring the funds, the agent was supposed to reinstate the security freeze on my old account. She failed to do so. 

On XX/XX/XXXX I called Discover again because I had not yet received my new debit card. I was told that a debit card was never ordered, but the agent placed the order while they had me on the phone. In short, the agent I spoke to on XX/XX/XXXX made a mistake. 

On XX/XX/XXXX I called Discover because a small positive balance remained on my old account ending in XXXX, and I wanted the funds transferred to my new account ending in XXXX. I was told that a pending transaction in the amount to {$1900.00} ( my monthly rent payment ) was in process and so funds could not be transferred. It was reasonable for me to think this transaction would be rejected ( because the attached XXXX transaction had rejected ) I contacted my landlord and let them know the issue. I also authorized my landlord to debit my new checking account in the amount of {$1900.00} to cover XX/XX/XXXX rent payment. I was attempting to avoid having a late fee assessed on my rent. Late fees are assessed after the 3rd day of the month. 

That evening I received an email a little after XXXX XXXX alerting me that I needed to deposit funds into my old account ( ending in XXXX ) by XXXX XXXX in order to cover a deficiency balance, otherwise a NSF charge would be assessed. ( enclosure DFS NSF Email ) Note : The email was sent at XXXX XXXX, but according to the email, I needed to provide funds 10 hours prior in order to avoid a fee. This seems unfair. I can do a lot of things, but I can not travel backwards through time. 

I immediately called Discover and alerted them to the issue. I asked two questions. 1 ) Why is a transaction pending on my old account? It was my understanding that a debit freeze was implemented. and 2 ) Will I be charged an NSF fee? 

I was told by the agent not to worry that the transaction would be rejected, and the agent made a note to check my account the following day when she arrived at work so she could reimburse the fee if needed. She also admitted that the security debit freeze was not re-added to my old account after the previous agent had shifted funds from my old account to my new account. I appreciated the agents helpfulness and honesty, but in short, the agent I spoke to on XX/XX/XXXX made a mistake. 

After we addressed that issue I asked the agent if my checks were on their way. I was told by the agent that checks were never ordered, but she placed the order while I was on the phone. In short, the agent I spoke to on XX/XX/XXXX made a mistake. 

Around XXXX XXXX that same evening, I checked my account balance in my new account and was SHOCKED to learn that {$1900.00} had been moved from my new account ( ending in XXXX ) to my old account ( ending in XXXX ) in order to cover the deficiency balance. 

I immediately called Discover again and protested the charge. I asked them to stop payment. I was told that nothing could be done, and that I should attempt to call the fraud department the following morning. 

The morning of XX/XX/XXXX, I called Discovers fraud department and asked them to fix their mistake regarding erroneously lifting the debit freeze on my old account. I was told the Fraud department couldnt do it, and that I should talk to Customer Service. I was transferred. Customer Service told me they couldnt do anything, and I needed to speak to the Dispute Department. The agent placed me on hold and called the Dispute Department, and then told me the Dispute Department would not assist me until the second transaction cleared. 

This is not my fault. Discover mishandled my accounts and I was forced to choose between paying rent late, and incurring a fee, or making two rent payments, and avoiding a fee. Discover should have prevented the first transaction from clearing, and they surely shouldnt have transferred funds from a new account to and old account that was being investigated for fraud. On top of that I did not sign up for overdraft protection, and I did not authorize Discover to shift funds from one account to the other. 

I pleaded with Discover to fix their mistake and reject one of the two transactions, and they refused to help me. I shifted {$2000.00} out of my savings account to cover the second transaction. 

So now I have a credit of {$1900.00} with my landlord. In essence I paid rent for XX/XX/XXXX and XX/XX/XXXX. I would like Discover to credit me the interest I would have earned in my Discover savings account on that amount for 27 days. The time between me initiating the second transaction and the date XX/XX/XXXX rent would have been due. 

It is absurd that Discover was unable to provide a provisional credit for {$1900.00} while they reversed the unauthorized transaction that stemmed from the ineptness of their agent. aIts absurd that they wouldnt allow me to dispute the first transaction, and insisted that I wait for the second transaction to clear, and then dispute the second transaction. Two missteps do not cancel each other out. 

According to my phone logs, I have spent 3.15 hours on the phone with Discover attempting to resolve this issue without success. 

I believe the actions of Discover are unfair and deceptive as defined by Section 5 ( a ) of the Federal Trade Commission Act ( FTC Act ) ( 15 USC Section 45 ) and the Dodd-Frank Act Discovers failure to reject one of the two transactions of {$1900.00} has caused substantial injury to me, and is unfair. Discovers actions of telling me that new checks and a debit card where being sent to me when the agent didnt process the order is deceptive, because it is likely to mislead. 

Throughout this whole process I was provided conflicting and contradictory information by Discover. 

It is my hope that the CFPB can intervene and require Discover to own their mistake, apologize, and offer reasonable restitution. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with monetary relief