Consumer complaint received 2020-03-30
Company: DISCOVER BANK
State: VA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Problem with customer service

Complaint:
While focused on news of a widespread Covid Pandemic, received a letter from Discover indicating their desire to increase late fees as part of a general terms of cardmember agreement. 

I did not take a liking the idea of these changes and increased fees, and thinking their choice of timing was distasteful given how many businesses are instead trying to help customers adapt to the current economic shocks related to closures and quarantines, while D

iscover is taking the opportunity to raise fees. So, I  contacted Discover to inquire about the changes, and if they were related to my recent Balance Transfer Promotion, or if they were company wide. 

After a bit of a wait I was put on the line with a representative in Delaware, who informed me the call would be recorded. And as per my preferred practice, if the other person is recording the call, I began to as well. 

I also tried to ask if I could opt out? 

I was advised that I can not opt out. 
I was told their internal directive says you can not opt out. 

I asked why not, and I was told " it means you have no legal right to opt out of these changes. " I asked to confirm that I hadn't signed away any form of personal agency that would allow me to choose whether or not to change or modify or enter into any new contracts. 
I was put on hold. 
While on hold, I typed into a popular internet search engine, XXXX, " Opt out Credit Card change rights? '' And among the results I found were an article of Consumer Finance Gov 's website : " updated XX/XX/2017 Can my credit card company change the terms of my account? 

The credit card company has the right to change the terms of your credit card agreement. For significant changes, the card issuer generally must give you notice 45 days in advance. 

Significant changes generally include increases in certain interest rates and fees, increases to the minimum amount due, or changes to the grace period or the way interest is calculated. You might not receive notice 45 days in advance about changes to the benefits you get from your credit card, such as points or cash rewards, or changes in the brand ( for example, changing from Visa to MasterCard or vice versa ) because these changes are generally not considered to be significant. 

There are restrictions on what changes the card company can make. For example, card companies generally can not increase the interest rate you pay on existing balances, except in certain circumstances. 

For many changes, you have the right to opt out of the newly changed terms. However, if you opt out, the card company might close your account. If your account is closed, you do not have to pay the balance in full immediately after the account is closed, but you are still responsible for making payments until the balance is paid in full. Depending on the card companys policies, your minimum payment may increase. The amount of the new payment can not be more than the amount needed to pay the balance off in five years or double your prior minimum periodic payment, whichever is higher.

Note : Closing your account may negatively affect your credit score because closing the account will lower the amount of available credit you have and increase the percentage of available credit you are using. " When the Discover representative came back on the line, I inquired as to whether or not I could opt out, and it would simply result in Discover doing something similar to what was described. 

I was unable to obtain a clear answer during the call and subsequent transfers as to why I would have " no legal right to opt out of these changes. '' After the call, and playing back the recording, it still made no sense to me why I wouldn't have any rights, and I attempted to find a better phone number for discover, finding one for their executive customer service line that fields complaints. 

I contacted their office, and spoke to a representative named XXXX, who relayed my concerns to some team, and said they would review the call and then I would be contacted back in a few days. 

I received the response from XXXX at Discover 's executive customer service office today, which was to inform me of the two following responses : 1. ) The calls were reviewed and any coaching opportunities were addressed.

2. ) You do not have a right to opt out of the changes to the cardmember agreement.

3. ) Our representative did not say you have no legal rights. 

When XXXX informed me of the third item above, I suggested that they must not have fully reviewed that call, and offered to share my own recording. 
This was not something XXXX at Discover was receptive to, and instead said Discover does not consent to having calls recorded.

So I gave him a brief reminder that he himself told me the call was being recorded at the start of each of our calls, and a brief explanation of how consent and 1 and 2 party requirements for recording calls work. And, that If the question is merely whether or not the representative did say that " you have no legal right to opt out of these changes to the cardmember agreement. '' It would be very easy to just play back the record. But do I have any rights?

Unfortunately, being unwilling to continue the call unless I assured him the call would not be recorded on my side, ( while he continued to record on his side at Discover, ) led to his unwillingness to continue the call ; and he politely and professionally wished me to have a good day before the call ended.

I seemingly am unable at this time, to further raise my concerns with Discover 's call center.

None of the paperwork I have signed with Discover seems to suggested that I have no right to agree or disagree with any changes to my account.

It would be helpful if someone at Discover could listen to my record of the phone call with Discover customer service representative in Delaware, in which I was told that " you have no legal right to opt out of these changes ... ''

Company response to consumer: Closed with explanation