Consumer complaint received 2020-06-18
Company: DISCOVER BANK
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
On XX/XX/XXXX, I entered into a program through Discover to help pay my credit card. The agreement was that the card would be inactive for 12 months and I would pay {$100.00} until the end of the year agreement. 
On XX/XX/XXXX, I reached out to a Financial counselor through a XXXX XXXX  center in XXXX XXXX XXXX in an effort to work on my credit. We pulled my credit and started looking at issues to fix. We agreed that I would keep paying one of my credit cards and work with XXXX XXXX to pay down my other two credit cards that I was having a hard time paying. I reached out to XXXX XXXX and set up an agreement. I received word that one of my cards had accepted the agreement but Discover rejected it. I was then called by XXXX XXXX and they stated that they would try again with Discover. I received another call from XXXX XXXX saying that because I was already enrolled in a program through Discover they were unable to add it to my XXXX XXXX account unless I closed it. I felt that I could afford the {$100.00} a month agreement with Discover so, I decided to stay with them and complete the Discover program and re asses when I completed it. 

On XX/XX/XXXX, I met with my financial counselor via phone to discuss my progress over the last 5 months. He pulled my credit to see the difference from XXXX. Good news, my score had gone up 50 points. Bad news, Discover closed my account with a balance. 

I was unaware of this, I wasn't notified and I have been in good standing with the program since I started it so I was confused as to why it was closed. 
My Financial Counselor found that odd as well and suggested I contact Discover. I reached out to Discover and after a lengthy online chat they stated that XXXX XXXX should've told me that my account was closed ( I have the copy of this chat ). That sounded weird so, I contacted XXXX XXXX via chat ( I have a copy of this as well ) and they stated that some credit card companies automatically close the account when they are contacted by an organization like XXXX XXXX and that Discover was one of those companies. I asked why I wasn't informed and they stated that I should've been told.

I circled back to my Financial Counselor and he suggested that I reach out to Discover to see if they would reopen my account. Which is what I did. They said, '' I  do apologize that you are going through this difficult time, however once the account is closed, it can not be reopened '' To which I responded, " Is that a hard line? No exceptions? '' And, Discover said, '' Yes, we are unable to reopen your account. You are able to reapply for a new card! '' My complaint is, how is it possible that I was not informed that mt account was closed AND how is it protocol that they automatically close an account when contacted by an organization like XXXX XXXX? Especially since I never added that card to my XXXX XXXX account. Additionally, If I am still paying discover, how are they able to " close my account with balance " but not report to the credit companies that I a paying on this card?

Company response to consumer: Closed with explanation