Consumer complaint received 2017-12-29
Company: DISCOVER BANK
State: TX
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:
I have been a Discover Finance customer for many years. In XX/XX/XXXX i was informed about the new product DISCOVER IT card with its benefits including reward miles. My previous account with Discover was XXXX balance and I assumed closed due to me moving to new account. Letters relating to this account that were sent in the meantime where returned back to Discover - including one stating that my limit had gone from {$4000.00} to {$500.00}. I did not receive any communications relating to account ending in ..XXXX. I assumed this account had been closed in XX/XX/XXXX and has never since been used. 
My new account is Discover IT account ending .XXXX which I have used responsively since opening it. I have made all payments required and not exceeded my limit. When my limit was reduced to {$6400.00} in XX/XX/XXXX I followed this request. On my credit score it indicated an excellent payment and relationship history with no concern expressed by Discover. 
I was however quite puzzled as to 2 emails sent on the XX/XX/XXXX informing me that both accounts had been closed. I received no communication regarding issues on my account causing Discover concern. I monitor my account regularly and make payment adjustments when needed to keep my account in a good state of affairs. I did this with my last additional payment of {$300.00} which was more than the minimum amount set up as an auto payment from my XXXX accounts. 
On receiving the emails i contacted Discover on Friday XX/XX/XXXX and spent 2 hours and 31 minutes trying to discuss the issue. I spoke to 5 agents ranging from the Hardship Department ( which i was confused as to why i had been directed to her as i have no financial hardship issues ), Accounts and Accounts Supervisor and eventually a Customer Services Supervisor, none of which were able to resolve my concern and reason for calling. It is this reason that i am now contacting the CFPB. 
I am confused to why Discover closed my account on the XX/XX/XXXX and then told me of this decision on XX/XX/XXXX bu email - the letter by mail posted XX/XX/XXXX has yet to be received. I received no calls or communication on my online account that an issue had potentially been identified which could have been discussed. 
As a XXXX I am aware of the importance of Credit Reporting Bureaus and educate clients not to open or close accounts when trying to securing credit. It was for this reason that I was concerned by Discovers decision to close my account. On speaking with agent they all agreed my payment history with Discover was fine so I was very confused as to why Discover now deem me as not worthy of an account with them. I could understand if i was reckless with my spending and repayment but this did not apply to me. 

I was told the reason for my account and relationship with Discover to be dissolved was related to 3 factors that were automatically reviewed with no customer/human intervention and that a decision was automatically decided after review with no way of reversing the issue. 
If i was contacted, as I was when they reduced my credit limit in XX/XX/XXXX this could have been explained. I am in a position to clear my accounts fully but I take advantage of the offers and promotional rates offered by lenders. 
The decision was made due to 3 criteria and each of the 5 agents discussed with me as I moved up the chain of command! - my previous account which i requested and assumed had been closed ending in .XXXX was seen as being a negative factor. When i explained i no longer used the account and was not aware that it was still active i was told communications relating to this has been returned as the address on file was incorrect. The address sent to was XXXX XXXX XXXX XXXX and mail goes into my home mailbox. This is my current address and is still used as a contact for my existing account. 

2. Derogatory remarks on my credit report posted by XXXX. This was an amount disputed and currently resolved by XXXX and was related to me switching and closing my XXXX phone account and moving to XXXX. I disputed this upto Presidential Level with XXXX and they are now forwarding me payment to pay XXXX the amount due to them. If I was made aware by Discover that this was an issue i could have explained and forwarded necessary documentation. This mark on my credit report was however in place when Discover reviewed my account in XX/XX/XXXX and reduced my credit limit. I am confused as to why it now caused an issue and that they did not reach out to a customer to seek clarification. 
3. Other accounts having a high balance. As a consumer I have taken advantage of 0 % promo rates from other lenders. These lenders have been paid mlore what is required during the terms of the promotion and will be cleared when the rate reverts to its non promo rate. These lenders have never had cause to have issues with my repayments. As a XXXX and XXXX XXXX I pride myself with my financial handling and responsibilities and up to my recent dealings with Discover have never had any cause for concern. 

My complaint is related to negative effect Discover closing my account with have on my credit score and history. 
I advise others as to the penalties involved in opening and closing accounts so I am aware i will be impacted when i refinance my current mortgage to release equity and when opening other lines of credit that i may try to do in future months, I feel i have been penalized by Discover unfairly as my history with them has so far been good and showed no sign of concern. As i explained to the agents if i was an individual who did not make payment and used the account recklessly i could understand the decision. But as ex valued customer i have been treated unfairly. 
I have basically been told I am no longer a customer but someone who still has a debt with them. I am aware if I did have repayment issues i could have contacted the Hardship Department ( which i was mistakenly first sent to on the XX/XX/XXXX ) and my account would have been dealt with and Discover would have worked with me but would not of actually closed my account. I did not fall into this category as repayment is not an issue and I am in a position to pay off the full balance. 
My concern is the handling of my issue. I was left after speaking to the Customer Services Supervisor that nothing can, or will be done to assist me. I did inform from the onset that my intention was to contact the BBB, CFPB, Federal Reserve and the Social Media consumer sites to post my concern. 

My reason for contacting CFPB was seek assistance in showing Discover how the ill informed decision and lack of customer care and contact can negatively affect a client when that client has a good relationship and financial dealings with them. Also I would like to be informed why I am now not seen as worthy as being a customer of Discover when i am welcomed by XXXX, XXXX and XXXX. 
Basically I feel i have been treated very unfairly!!

Company response to consumer: Closed with explanation