Consumer complaint received 2020-03-12
Company: DISCOVER BANK
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Privacy issues

Complaint:
I have been a Discover Card holder since XXXX. I have never had ANY problems with my account. I was never delinquent, never late, never had big spending, not a single red flag. Three days ago, as usual, I tried to log into my Discover Card online account in order to make a payment ( to avoid being late on my payment, I mailed out a check by snail mail ). Suddenly, a window popped up saying that due to some concerns with my account, my access was blocked and I needed to call the toll free number on the screen. I called that number, and I was told that Discover allegedly sent out a letter in the mail requesting that I verify my address. I assured them that I never received anything like that in the mail. Then another representative got on the phone and corrected that I should have received an email. At that time I checked my emails again and didn't find anything. So I requested that they re-send me that. When I received the 2nd email, I realized that Discover is asking me to sign the IRS Tax for 4506T to obtain my tax return transcripts for the years XXXX   and XXXX. and if I did not comply, they would close my account  on XX/XX/XXXX. This came as a shock to me. I called Discover again and demanded an explanation as to the fact that there are many other ways to verify a person 's address, why do it via taxes. I asked the rep. if this very clause is found in my card terms and conditions, to which he responded, that he wasn't sure about that, just that they are allowed to verify person 's information by whichever means they deem necessary. I requested that Discover sent me my Card Agreement Terms and Conditions again since I did not keep the one from XXXX. I wondered why they needed my XXXX and XXXX returns? This is an odd request, unrelated to anything, and a breach of a person 's privacy. The representative tried to explain that IRS keeps the most up to date address. I told the rep. what more proof of address would there be if I receive my paper billing statements in my address and I never missed a payment, and I never did anything to trigger such inquiry into my private tax returns, I did not apply for new account, I didn't request to increase my credit limit, I didn't have large purchases, I didn't have anything but to pay my remaining balance, and always more than the minimum payment. I told the rep. that I did not feel comfortable sharing  my private tax information with Discover or any other credit card, and I was not willing to authorize Discover to request my private tax returns for XXXX just to verify my address. To make matters worse, Discover uses XXXX  to run that inquiry ( after all what we went through with XXXX  data breach ). Taxes happen to be a very confidential information to share with a any credit card company for a good credit standing that I maintained with Discover since XXXX. And it is my right to refuse it. However, they threaten to close my account, which will impact my credit rating. I called an attorney to discuss this matter, and the attorney was equally surprised by this unusual request. I intend to hire an attorney for this illegal and unfair business practices by Discover.

Company response to consumer: Closed with explanation