Consumer complaint received 2018-06-26
Company: DISCOVER BANK
State: MA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
I have been a credit card holder of Discover for many years. My payment due date is on the eighth of every month. I did not have any issues with Discover until the year XXXX. 
My first problem with Discover started in XX/XX/XXXX. On XX/XX/XXXX, I made my minimum monthly payment of {$66.00} after the cut off time at XXXX but on that same day. I realized that a late fee was assessed on my account, which I called and got it waived. I also realized that the next months minimum payment ( XXXX ) had increased to over {$100.00}. I believed the bank arrived at this new minimum payment due in XXXX based on the late payment that occurred in XXXX. Unfortunately, for me I lost my job in XXXX, so I called and told them that because of my situation I can not afford to pay the new minimum amount due. I told them I was prepared and can afford to pay the minimum amount of {$66.00} that I had paid the previous months ( assuming no more purchases for the month ). The person that I talked to said she would discuss with her supervisor and get back to me. I did not hear from Discover, either by phone or mail, therefore I made a payment of {$66.00} on XX/XX/XXXX and continued to make payments of {$66.00} every month until XX/XX/XXXX. 
Discover reported me to credit bureau that I made insufficient payments on my account. I never missed any payment and never used the card since XX/XX/XXXX. Discover Credit Card considered the {$66.00} monthly payment insufficient. I got 100 points reduction on my credit score. I called Discover to find out what could be done. The person I talked to suggested that I sign up for a hardship program for one year, which will give a low interest rate of 9 % and a reduced minimum monthly payment of {$49.00}. I agreed and signed up and later realized that another 100 points had reduced my credit score. I had no other option so I decided not to use that card again and have still not used it up to today.. The hardship program ended in XX/XX/XXXX and l began paying {$66.00} as monthly minimum payment required by Discover.

The second problem with Discover, which is the reason of my complaint, started in XX/XX/XXXX. One of the conditions of the hardship program was to set up automatic monthly payment, which I did using my XXXX XXXX XXXX ( XXXX ) bank checking account ending XXXX. Then in XX/XX/XXXX, I opened a new XXXX checking account and decided to stop using the banking account ending in XXXX for my Discover Credit Card payment. I therefore set up a new payment of {$66.00} using the new checking account ending in for the required minimum monthly payment in XXXX. What happened was that the payment of {$66.00} that I set up went through and Discover dot paid. I later found out that Discover again managed and took another {$66.00} out of the new checking account although that new checking account was not the one been used for the automatic payment. I ended up making two payments in XXXX ( refer to exhibit 1 ). 
I immediately called Discover and informed them what had happened. I was told initially the refund would be credited to my checking account. After waiting for some days without seeing the refund, I called again and was told the refund will be in a form of a check from Discover. On the XX/XX/XXXX, a day to my XXXX payment due date I had not received the check so I called again and told them that they have my money with them for almost one month and I have not received the check, they should use the money with them for my XXXX monthly minimum payment. I again said they can either cancel the check or I return the check when I receive it. I called again the following day, which was my payment due date and was told they will get back to me. No one got back to me so I did not make any more payment in XXXX. I received the check in XX/XX/XXXX but did not cash it because I had already told Discover to use if for XXXX payment ( refer to exhibit 2 ). As states earlier, I did not make any payment in XXXX and Discover considered it as a missed payment. Since XX/XX/XXXX to XX/XX/XXXX, I have been paying {$66.00} every month, never missed a payment. I have not missed a payment, and never used the card since XX/XX/XXXX so I believe my minimum monthly payment should not be more than {$66.00}. 
Somewhere in XX/XX/XXXX, I got a call from Discover and the man I talked to told me that if I make a payment of {$120.00}, he would clear or remove all the late payment fees on the account. I decided to cash the check I received from Discover and made two payments ( {$130.00} ) in XXXX, but to my surprise, the late payment fee on my account was not removed. 
I have been denied online access to my account. I can not make my monthly payment of {$66.00} online. I always have to call to make a payment. 
As at the time of writing this letter the outstanding balance on the account is more than the same period two years ago even though I have not used the card since XX/XX/XXXX and also been paying {$66.00} every month. What Discover want me to pay as the minimum payment due is basically the late payment fees and insufficient payment fees that have been wrongfully charged to my account.

Company response to consumer: Closed with monetary relief