Consumer complaint received 2022-10-05
Company: DISCOVER BANK
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
September 18th signed up for a working program with Discover.  Gave them my routing and bank account number.  They processed the first payment as ACH then started to process them as CTC.  I don't know what CTC is and my account does not accept CTC.  Discover had a policy change where payments were to be processed as ACH instead of CTC.  They were having too many issues according to a Discover card representative. In XX/XX/XXXX I called to find out why my payments werent going through. Because they were using CTC it did not go through. I recieved no notice from Discover or my bank. My account was charged for a ACH return fee from XX/XX/XXXX. During that time they processed it as an CTC not ACH.  

For the past three months I have been fighting this. Discover refuses to reserve the late payments.  They had my banking account information for automatic payments. Discover refuses to send me documentation stating the payment process.  I asked for a the recording of my call on XX/XX/XXXX. They said that they cannot provide that.  

I am attaching a call transcription of my last call with Discover.  


Speaker 1 Discover-  01:13:06
 Patience, ma'am. Um, my name. My name is XXXX. And this call may be monitored and recorded, and I was told that you need some assistance on your programme. Is that right?

Speaker 2 XXXX XXXX 01:13:18
 Yes, I need I need to get documentation of where Discover, decided that they were going to change the process of the way my payments were after the initial one went from  from ACH to CTC and now back to ACH?

Speaker 1 Discover  01:13:44
 Uh, may I ask what for?

Speaker 2 XXXX XXXX  01:13:47
 Because I did not give permission for Discover to use CTC. I didn't even know what CTC was until April of this year.

Speaker 1 Discover  01:14:02
 So you're worried about the CTC payments. I see it was returned back in April. 

Speaker 2 XXXX XXXX 01:14:12
 It returned back from XX/XX/XXXX until XX/XX/XXXX because I called in XX/XX/XXXX asked what was going on and said to remove that chase account and put in the Truist account.

Speaker 1 Discover- 01:14:38
 Yeah, and we're pulling, and I see that we're pulling from the Truist to bank now. what is it that you need from discover?

Speaker 2 XXXX XXXX
 Discover never said that It the payments were gonna go from ACH to CTC/  My account doesn't take CTC  payments. You also charge me a return Me for ACH returned  payments.

Speaker 1 Discover  01:15:16
 So you are requesting to have the return check charge be rervsed?. So what you're saying is you are requesting to have the return check charge back in April. Reversed? Is that correct?

Speaker 2 XXXX XXXX  01:15:31
 Where is it? Did discover tell me back in September of eight XX/XX/XXXX that my payments were gonna be first ACH, then CTC then ACH.

Speaker 1 Discover   01:15:47
 They didn't. We did not know. It is typical that most banks except CTC. I'm sorry that back inXX/XX/XXXX that you were that we were unaware that they weren't gonna do CTC. Like you said, you didn't even know what CTC was.

Speaker 2 XXXX XXXX  01:16:09
 Right  But no one ever said they were gonna go through as ACH then CTC. So now you guys show I didn't pay my my payment from October to march, and it's affecting my credit.

Speaker 1 Discover  01:16:29
 Oh, so you're worried about your credit score?

Speaker 2 XXXX XXXX   01:16:32
 Yes, it's It shows late payments on my credit history.   It shows late payments from between, um

 between oct between XX/XX/XXXX to  XX/XX/XXXX, And then on top of that, I get charged an ACH  return return fee of $40 for every time that it happened. You guys reversed it. But why would you charge me an ACH return fee iIf you processing the payment as a CTC?

Speaker 1 Discover  01:17:20
 That's an easy question to answer. Um, again, that'd be frustrating to be. It would be frustrating to receive return check fees. Um, it's just a label. It's so regardless, whether it's ACH, it's just a label. It's just basically return. So you don't have to worry about the just returned check whether it's shows up that way. Um, going back to, last year and I see September refund.

Speaker 2  XX/XX/XXXX 01:17:52
 I got the refund I got because you guys said you processed the payment as an ACH. When that wasn't the case, it was processe. So where is it On XX/XX/XXXX that You guys told me they were gonna be CTC payment.

Speaker 1 Discover  01:18:15
 Oh, there isn't. We never told you that it would be a CTC payment. 

Speaker 2 XXXX XXXX 01:18:20 So how wouldI know? So how would I know that they were going to be processed from ACH to CTC. 

Speaker 1 Discover  01:18:29
 You Wouldn't. And so, like I said, most I can look into it for you about the credit. Like you said, there would be no way for you to know whether it's a CTC or not. Most banks accept it, and it looks like they and you're saying you got so it sounds like Discover card reimbursed you for those return check charges. So we don't have to worry about that. And so now the main concern is the fact that you were trying to make payments and you couldn't Because and then it's showing late on your credit port. And  you are requesting is to have that wave, right?

Speaker 2 XXXX XXXX   01:19:05
 Yep. And I've already been told No, But if you're telling me there's no way to know then we would have had no way to know that the payments would have been processed as  CTC. Then why am I getting dinged for it.

Speaker 1 Discover  01:19:23
 It's a valid question. So, um, and have all of those answers and and you can see
them for you.

Speaker 2 XXXX XXXX   01:19:34
 Um, I've talked to the executive office, at least three times already. I have filed

 a consumer  financial, um, uh, complaint, and And all I keep getting back from Discover is that it was ACH then CTC. And because I called in and change the account number, it went back to ACH. Why didn't stay a ch the entire time?

Speaker 1 Discover   01:20:08
 The entire time we recently had a policy changed to what we don't do CTC season specifically requested because we have had, a lot of troubles there in the past. So now all of our payments are unless it's specifically are for ACH. 

Speaker 2 XXXX XXXX    01:20:26
Yeah  I  never requested the CTC and when I signed up, 
 And when did that take place? 

Speaker 1 Discover Yeah, we're talking just, months, not even a year. So originally signed up, it makes sense that they set it up for CTC. There was an issue. Um, because I remember being I've been here for seven years. I remember setting up payments, you know, electronic as electronic checks, etc. That's what it stands for. Check to check. And most banks except that., 
We do. Um, like I said, we don't even have an option unless the customer requests, etc. Like it's all now. And so your main concerns my concern is what? My credit,


 Speaker 2 XXXX XXXX -Right

Speaker 1 Discover -And so I'm just explaining you that we don't do CTC anymore. You? Why was it changed back to ACH And so and so when you made the change, we were able to get just to get you right back on. And you're able to solve the issue with finances financially, you're able to to, to resolve the issue. And we're doing our best. And we did our best and reimbursing you there. And now you're hoping to be able to get the the credit score fixed as well. Me personally, I have no power to fix that. But I know people who can. And so I need, because I can't help you in that area. I know you've been bounced around. This has been a months of work I can't imagine how frustrating this must be for you. Um, I'm a specialist on the programme itself, Not in the, uh, reporting area. I can tell you how we report to the credit bureaus, but, uh, in regards to fixing that, uh, that's that's somebody else. And I am sorry that you're being bounced around and everyone's just trying to be able to do their best to be able to help you. And the last agent that spoke with you, uh, it, you know, had no idea It doesn't have very much knowledge about the programme themselves. And so it is their policy to be able to connect you to a programme specialist, which is me, and because they just don't know. So they're following procedure to be able to get to a programme specialist, which is and and and so I've been able to explain the programme. I'm glad everything's work. My job is to satisfy you financially, and it sounds to me like you're financially satisfied, but the the credit score side is not. And so that somebody else from that that someone else other than the, other than the last agent and me, that's that's a whole nother ball park. And we are just make, you know, just going through the checklist, making sure you're satisfied in every way. And hopefully we're we're gonna get there. 

Okay? So I'm just gonna ask for your patience while I reach out and find that individual and that department who can. Okay.

Speaker 2 XXXX XXXX   01:23:59
 Thank you.

Speaker 1 Discover   01:24:01
 Thank you so much. Yeah, you're absolutely welcome. Let me go find out to speak to about that. So just give me one moment.  Yes. Alright. Thank you so much for holding. Thank you. Thank you for holding. Um, I've found the right person talk to It's just taking a while to get them on the line. Okay.

Speaker 2 XXXX XXXX   01:35:29
 That's okay. I'm working as as I'm on hold anyway.

Speaker 1 Discover   01:35:34
 Oh, you're awesome. Wait a multi task. I just don't want to wasting your time. And so thank you for and I'll I'll come back here in a bit. Okay?

Speaker 2 XXXX XXXX   01:35:42
 Okay. Thank you.

Speaker 1 Discover 01:35:44
 Mhm. Mm. Okay. Alright, Ma'am, You still with me?

Speaker 2 XXXX XXXX  01:51:09
 Yep. I'm here.

Speaker 1 Discover   01:51:11
 You doing awesome. I'm glad that you've got something to to do, because yeah, I'm being bounced around from department to department as well. I thought I had um I thought I had the right person, but it needs to go to somebody else. And so I think we finally found it. But again, just letting you know that it's just taking some time. I appreciate your patience. And I'm glad you've got something else to work on a while. We're doing this. Otherwise you're right. This could be a long call to do that. A lot of trying to get this all figured out. So thank you.

Speaker 2 XXXX XXXX  01:51:45
 Thank you.

Speaker 1 Discover  01:51:48
 Absolutely. One more moment and I'll check back in as as time goes on. Thank you.
 I have an answer for you. And I need you to grab a pen and paper or something to write. With

Speaker 2 XXXX XXXX   01:54:05
 What? Okay,

Speaker 1 Discover   01:54:16
 let me know already.

Speaker 2 XXXX XXXX   01:54:18
 Yes, go ahead.

Speaker 2  01:54:23
 So, So I need need to let you know that you're entitled free annual credit report and and excuse me that you're entitled to a free annual credit report, and we can direct you to that. The website is www dot annualcreditreport dot com.

Speaker 1  01:54:50
 Okay. Why do I need to go

Speaker 2  01:54:52
 there? Just for just for future reference is, um let me go ahead and review all of the information, then If you have questions about our decision and what's and what's happening, then you can continue. Yeah. Let me just give you all the information and I'll explain it all as I give it to you. Okay.

Speaker 1  01:55:14
 Okay.

Speaker 2  01:55:17
 Thank you. Uh, their phone number is, uh, 1877, three, a 228.

Speaker 1  01:55:33
 Okay.

Speaker 2  01:55:36
 Okay. Now, uh, with policy, you want to dispute credit your information reported by Discover, uh, by mail. Uh, then and if so, if you check with that you find there and if you have any disputes. So this is so you can use that information to get the exact details. Not just general, but so that way you can get the exact details. Exact dates, exact months. Um, then you so you can get all that information there. You can then dispute to, uh, Discover financial services. The PO box number to that is 30, 939. And that's Salt Lake City. Utah. 84130.

Speaker 2 XXXX XXXX  01:56:37
 Okay, so I've already done that,

Speaker 1 Discover  01:56:42
 and and you must include your your name, address, phone number, and account number. If you want to continue to distribute it, you can go through there I have spoke with supervisors here. Discover card. They won't go back. They won't go back. They won't fix it. Uh, because, uh because policy, is that, the because it wasn't specified on your end, that had to be a ch only, I know you. I know you weren't aware, of the PC s that you didn't even know that was a possibility. But Discover Card's policy. And I know you may not agree with, nce um, tense. I'm giving you that information, to continue to to continue to fight it. And it's just that the the the policy is that you did not, specify it had to be a ch or C T. C only,

Speaker 2 XXXX XXXX    01:57:54
I don't even know what the CTC is, so I've already I've I've already disputed with credit.
 I've I've already disputed with all three credit rules. I already have a case open with, um, with, uh, with the consumer board. So I'm just gonna have to give them this information and let the consumer board take over.

Speaker 1 Discover  01:58:29
 Yeah, that's that's the best. That's the the best thing you can possibly do right now.

Speaker 1  01:58:36
 I mean, those

Speaker 2  01:58:36
 channels

Speaker 1  01:58:37
 I've even gone to the executive office. So, But you've given me, um, in the most information that I need and I'll be submitted it with my complaint. So, thank you. Thank you for being.

Speaker 2  01:58:51
 I'm sorry. Yeah, you're welcome. Sorry. Couldn't be more help. And I waited the best of luck and and getting that resolved, uh, we definitely want to. We definitely want to do things right. And I just wish there were It was easier.

Speaker 1  01:59:10
 This is not right. So, um OK,

Speaker 2  01:59:13
 well, there's There's just a process to be able to fix bad processes, right? And sometimes they can take a long time. Well, but

Speaker 1  01:59:24
 But it's but
Speaker 2  01:59:25
 it's it's

Speaker 1  01:59:26
 it's affecting, leading to get my home loan. So, um okay, but I'll I'll take the information you've given me.

Speaker 1 Discover  01:59:36
 Yeah, and and I would include that that it's affecting you now and because of what's happened, you know, it's affecting you now, and you're going through all the right process is you're being patient, uh, and then hope hopefully there's recommence for that. Uh, I mean, Discover card is definitely wants to fix any, You know, any issues? We don't want this satisfaction. And I know Right now you're dissatisfied, and we are. And so you're going through the right avenues to be able to get that fixed. I wish Discover card could make those fat those changes. It's just that with with policies that are that big, there's just a process to build to go through it and you're doing it, and you're you're doing it and so definitely include what's what's happening to you now and how it's affecting you now and then. Hopefully it can be more recommends here, uh, later down the road, uh, to be able to make it right. But yeah, we're we're we definitely want to make it right. And I would assume that's probably why they made such a change. Uh, most recently, you know, within these past few months, um, that they quit doing all together because it seems to have been a headache and and hopefully we're gonna see a lot less of these becoming through because of that change, and it's just gonna be taken some time. And so I thank you for your process patients and going through this process with us, ma'am.

Speaker 1  02:01:07
 Okay,

Speaker 2  02:01:08
 So that being said, let me just make sure we got the right contact and everything on here. I've got your address as XXXX XXXX XXXX XXXX XXXX XXXX XXXX. email is, um that's XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Right. Okay, phone number XXXX XXXX XXXX.

Speaker 1  02:01:40
 Yes.

Speaker 2  02:01:43
 Okay. Let me call you, uh, if if there's an issue. Uh, So for your number XXXX You agree to banking facility in agents may call you including text about any current future accounts or applications. With respect, I'll probably discover any funding you provide. And in addition, you agree, discover, make contact using and report voice message. Even if your phone provider may charge you for call text, yes or no? Thank you. Uh, there's not a work number to call you on as a backup. Is there, any alternate numbers that

Speaker 1  02:02:22
 No, this is my current number,

Speaker 2  02:02:27
 okay? And you're doing a great job on your programme, By the way, Uh, so financially, I'm glad you were satisfied in that area. I mean, you're you're getting a lot of assistance and you were almost $8000 and now you're down to $XXXX XXXX XXXX. Uh, plus, that's very tiny amount of daily interest. But you're doing such a good job. Uh, so keep up the good work you still have scheduled as a ch going forward. Uh, the next payment is XX/XX/XXXX. So I'll just get a couple of days for theXX/XX/XXXX. So keep up the good work. Thank you for choosing discover. And I hope you have a good rest of your day. And

Speaker 1  02:03:07
 I really appreciate all your help. Yeah,

Speaker 2  02:03:11
 you're welcome. And you take care. Bye bye.

Speaker 1  02:03:13
 Bye bye.



I do have two more recorded phone calls with Discover discussing the this same issue .

Company response to consumer: Closed with explanation