Consumer complaint received 2015-10-07
Company: DISCOVER BANK
State: CA
Product: Credit card
Issue: Closing/Cancelling account

Complaint:
After being a Discover Card holder for more than a decade, I received an email dated XXXX XXXX, 2015 stating that, " As a result of a recent review of the Discover card account referenced above, we have suspended your account and it will be closed within 30 days from the date of this letter. This action will be taken for the following reason XXXX XXXX ) : Inactivity on your account XXXX XXXX ). " The letter states that should I have any questions regarding the actions taken on XXXX my ] account to contact Discover at XXXX. 

Upon receiving the email, I contacted Discover and was told by the CSR and her supervisor that my account -- contrary to what the email stated -- had already been closed. " Why, '' I asked, " would you have already closed my account when I had just today received a notice from you telling me that the account would be closed within 30 days from the date of the letter? Why even send the letter if the account was already closed and there is 'nothing you can do about it '? " It is my contention that this was a punitive action on the part of Discover as " maintaining '' a zero balance account in a computer database costs them nothing. 

For my part, I communicated to Discover that the elimination of my zero balance against a credit limit of {$10000.00} would adversely affect my credit rating and that this was unacceptable. I was then informed that I was welcome to apply for a NEW account and that my credit report would be pulled for a new line of credit with Discover. I told Discover that this too was unacceptable as an unwanted credit inquiry can also negatively affect my credit rating. 

Time and time again I was told that " there was nothing they can do '' and " that I have no other options. " I informed Discover that the reason for my inactivity was because -- after contacting Discover on numerous occasions -- they refused to lower my interest rate from an egregiously high XXXX percent. I have a current FICO score of XXXX and, knowing that I was receiving much, much lower rates on my remaining XXXX card, chose simply not to use my Discover card until such a time that Discover lowered my interest rate to one that more accurately reflected my creditworthiness. 

Ultimately, Discover has made a unilateral decision -- based not on my creditworthiness, delinquency or any act on my part -- that has the absolute potential to adversely affect my:1 ) Existing credit rating ; 2 ) The interest rate ( s ) that I am being charged for my existing credit, and ; 3 ) My ability to obtain credit in the future. 

Discover is in effect blackmailing me use their card when it is my prerogative not to do so ; and furthermore insisting that if I do acquiesce to their demand, that I pay an exorbitant interest rate to do so. 

I have informed them directly that I will be filing a complaint with this Bureau and will be pursuing legal action against the regarding this matter. 

It is my intention to have my account reinstated and that my hard-earned credit rating remain unaffected, completely whole and in tact.

Company response to consumer: Closed with non-monetary relief