Consumer complaint received 2018-12-03
Company: DISCOVER BANK
State: PA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
In XXXX of XXXX I took a Cash Advance on my Discover Card in the amount of {$3500.00}. In XXXX of XXXX, I called and asked how I can extinguish the Cash Advance part of my debt, and I was told that any amount I pay above and beyond my minimum balance would be applied to the cash advance balance. In XXXX I paid {$5000.00} which was {$4500.00} above the minimum balance. None of that amount was applied to the cash advance balance. From that point until now, my Cash advance balance has continued to climb due to the 23.99 % interest. I have called 2 additional times to find out how to pay this balance off and I was consistently told the same information. In XXXX I realized something was drastically wrong as the cash advance balance was now over {$7500.00} and I had never used the cash advance after the XX/XX/XXXX date. I called Discover and was finally told " Oh -- You have a business card -- and until XXXX XXXX, no amount was ever applied to the cash advance balance '' In XX/XX/XXXX, they told me they changed the terms of my account allowing them to apply payments to the cash advance. I continued to argue that this was not what I was told, and they agreed, I was told bad information on more then one occassion. On XX/XX/XXXX they adjusted my finance charge {$500.00}. and on XX/XX/XXXX they gave me a courtesy adjustment of {$320.00}. They said they were giving me this because I was given bad information. Although that is appreciated, it does not account for the {$3300.00} in finance charges I have been charged since XX/XX/XXXX. From XX/XX/XXXX until XX/XX/XXXX, my minimum payments totaled {$22000.00}, During this same time, I paid {$44000.00} for an excess over minimum payment of {$22000.00} yet my cash advance balance climbed from {$1800.00} ( XX/XX/XXXX ) to {$8000.00} ( XX/XX/XXXX ). All of this without ever making another cash advance. When I questioned the call center supervisors, I was told the only way I could ever pay off that cash advance was if I paid my entire balance on the card. This was never told to me, and due to the fact that the interest rate on the credit card is only 13.9 % I continued to use this card for small purchases. I am very distraught over this. I feel like I was doing business with a loan shark - without my knowledge. Representatives from Discover tell me this is due to the language of my credit agreement. I asked them on XX/XX/XXXX to please send me the document that shows this language. They sent me language that tells me what they have told me in the past ( that everything over the minimum due is applied to the cash advance ). On XX/XX/XXXX I again argued this with a supervisor and asked to speak with her supervisor. She refused to allow me to speak to a higher person and told me several times that no-one there can help me. She said she would " Try " to get me a copy of the terms. I have not been contacted since. 

In summary, I do not feel that Discover has been open and transparent with me. In addition to the interest rate being compounded, I also paid fees at the start of the cash advance which I was aware of and agreed to. I was told they told me the wrong information because I was a " BUSINESS '' account and they do not treat their personal accounts this way. I feel that I have been discriminated against because I am a female small business person. I have offered DISCOVER 2 ways to rectify this. # 1 - they can recalculate my interest and apply the payments as I was promised over the years. or # 2, they can extinguish the entire account and re-open another account with the present balance calculating it at the 13.9 % going forward. I was refused both of these suggestions. 

I feel that I have been patient and have offered to work with them. I have consistently paid my card on time and above the minimum balance - as I was trying to get rid of the debt. I do not feel that they worked in the same manner as other credit cards, because I was in the same situation with XXXX XXXX and they told me the same information -- " Anything you pay above the min. balance is applied to the highest interest rate '' I was able to extinguish the XXXX  Cash advance easily. 

I respectfully ask your help in this matter. I do not have {$3300.00} laying around to pay needlessly into finance charges.

Company response to consumer: Closed with non-monetary relief