Consumer complaint received 2023-10-08
Company: DISCOVER BANK
State: FL
Product: Payday loan, title loan, personal loan, or advance loan
Sub-product: Installment loan
Issue: Problem with additional add-on products or services

Complaint:
134 STAT. 282 PUBLIC LAW 116136XXXX. XXXX, XXXX The CARES Act was passed by Congress on XX/XX/XXXX and signed into law on XX/XX/XXXX Several time customer supports asked if I have received any basic support from family members, and or income support from the government. I stated that I have received a one-time payment to help with short-term costs basic income, at that point I was told that I was to use that income to pay my payment. 

Phone call on date : XX/XX/XXXX Payments were made until all finances were depleted. 

I ask if Forbearance or a temporary pause or reduce on the amount to the loan payments for a limited time while you build back your finances. I was told no and that I should ask family or friends to help make payments. 

Phone call on date : XX/XX/XXXX I stated that Under the CARES Act, due to the unforeseen situations, lenders are required to report my accounts as current, I was told that wasnt true and that Discover will report my account delinquent. 

Account reported several times. 

After several attempts I was finally permitted to make partial payments and was informed that the terms of my loan were changed and that it would be a permanent change. 
XX/XX/XXXX XX/XX/XXXX Loan Term changed XX/XX/XXXX late fee XX/XX/XXXX Loan Term changed XX/XX/XXXX Loan Term changed XX/XX/XXXX short term XX/XX/XXXX short term Modify loan or contract modification documents was requested over the phone on a recorded line, which is the same way Discover had me agree to for the agreement. Every time the loan changed terms ; I requested the document. I was told that they were online when I looked, they were not. I was even told that they would be mailed to me and they were not. 

Loan was modified : XX/XX/XXXX XX/XX/XXXX I have asked several times with Discover bank under the Contract agreement for arbitration and was denied when ask why I was told that it does not apply to my account/contract. 

On XX/XX/XXXX a formal request for Arbitration was set to Discover Bank representation XXXX XXXX XXXX they did not respond. 

On XX/XX/XXXX during court mediation, I asked for Arbitration the legal counsel stated that I can not receive Arbitration because it was only for credit cards.

Arbitration : Agreement to Arbitrate. In the event of a dispute between you and us arising under or relating to this this Account, either you or we may choose to resolve the Claim by binding arbitration, as described below, instead of in court. Any Claim ( except for a Claim challenging the validity or enforceability of this arbitration agreement, including the Class Action Waiver ) may be resolved by binding arbitration if either side requests it. THIS MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION, NEITHER PARTY WILL HAVE THE RIGHT TO LITIGATE SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL. ALSO, DISCOVERY AND APPEAL RIGHTS ARE LIMITED IN ARBITRATION. 
Even if all parties have opted to litigate a Claim in court, you or we may elect arbitration with respect to any Claim made by a new party or any new Claims later asserted in that lawsuit.

This arbitration agreement does not apply if, on the date you submit your application or on the date we seek to invoke this arbitration agreement, you are a member of the XXXX XXXX or a dependent of such a member covered by the federal XXXX Lending Act. If you would like more information about whether you are covered Under the term of the Contract and Federal Arbitration Act : Discover bank has denied my right to Arbitration and has taken this to small claims court and seek judgment. 
Case number : XXXX File number : XXXX Account XXXX. XXXX XXXX XXXX XXXX. XXXX, XXXX, XXXX XXXX. XXXX XXXX. Failure to arbitrate under agreement ; petition to United States court having jurisdiction for order to compel arbitration ; notice and service thereof ; hearing and determination A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction under title 28, in a civil action or in admiralty of the subject matter of a suit arising out of the controversy between the parties, for an order directing that such arbitration proceed in the manner provided for in such agreement. Five days ' notice in writing of such application shall be served upon the party in default. Service thereof shall be made in the manner provided by the Federal Rules of Civil Procedure. The court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement. The hearing and proceedings, under such agreement, shall be within the district in which the petition for an order directing such arbitration is filed. If the making of the arbitration agreement or the failure, neglect, or refusal to perform the same be in issue, the court shall proceed summarily to the trial thereof. If no jury trial be demanded by the party alleged to be in default, or if the matter in dispute is within admiralty jurisdiction, the court shall hear and determine such issue. Where such an issue is raised, the party alleged to be in default may, except in cases of admiralty, on or before the return day of the notice of application, demand a jury trial of such issue, and upon such demand the court shall make an order referring the issue or issues to a jury in the manner provided by the Federal Rules of Civil Procedure, or may specially call a jury for that purpose. If the jury find that no agreement in writing for arbitration was made or that there is no default in proceeding thereunder, the proceeding shall be dismissed. If the jury find that an agreement for arbitration was made in writing and that there is a default in proceeding thereunder, the court shall make an order summarily directing the parties to proceed with the arbitration in accordance with the terms thereof.

On this Dated I submitted this letter bellow I was completely ignored and was told that neither the payoff or the Arbitration would be accepted. 

XX/XX/XXXX Dear XXXX XXXX XXXX. 

I am offering to settle this debt in the amount of XXXX XXXX dollars ( {$5000.00} ) to DISCOVER BANK. Under Florida Statute 222.11 I am classified as head of house hold and this is all that my family and I have to settle this case, if you decide to accept the terms, conditions which are to remove any and all negative remarks that DISCOVER BANK has placed on my credit profile from any and all credit reporting agency system. 

If DISCOVER BANK chooses not to accept then I would like to request a COMPELLING PRIVATE ARBITATION per the ( Arbitration Clause ) agreement in the contract. 

Throughout the year XXXX, DISCOVER BANK has changed the terms and conditions of the Loan a total of five times, I have asked for the new loan terms and a copy of the terms every time only to be denied. 

The amount that has been entered in court documents are not factual nor are they a true reflection of what is owed according to last statement or account balance. 

Feel free to contact my attorney if you have any further questions. If you choose to accept, please reach out to my attorney on file. 

You have until the date of XX/XX/XXXX to respond if no response is received XXXX XXXX BANKRUPTCY will be filed. 

Yours truly, XXXX XXXX.

Company response to consumer: Closed with explanation