Consumer complaint received 10-12-2017 about Credit card or prepaid card (General-purpose credit card or charge card) with DISCOVER BANK (TX).
Issue: Other features, terms, or problems
Sub-issue: Problem with balance transfer

Complaint: This about a credit card with Discover Card. My wife and I have a joint credit card we have operated sin XXXX and we have never missed a payment. Last month ( XX/XX/XXXX ), we did a balance transfer from a different financial institution for a balance transfer of {$7400.00}. As at the time the balance transfer hit our discover on XX/XX/XXXX the statement balance on our discover account was {$1200.00} leaving a credit on our discover account for the amount of {$6200.00}. Kindly not that our credit limit on our discover credit card was {$5000.00}. So I called discover card over the phone and also sent them a secured message on XX/XX/XXXX ( the next day ) for a credit refund of the balance which was the amount of {$6200.00}. The next day which was XX/XX/XXXX I got an email from discover ( see attached email trail ) that the check of {$6200.00} has been mailed to our address on the account. Now, learning that the refund check has been mailed, I made three transactions for a total value of {$2800.00} on XX/XX/XXXX. 

On Monday XX/XX/XXXX, I logged on to my discover account to check my transactions the previous day, then realized that the check refund I was told in the secured message that has been mailed had not yet reflected on my account. So I wrote to discover through their secured message, wanting to find out why my account is not showing the refund statement yet. That was when I got the first of many responses contradicting what they said they had done. So there and then I told Discover that they should make sure that they refund the complete {$6200.00} as stated in the message on the XX/XX/XXXX because it was on that premise I made those new transactions because I have enough credit limit on the card for those new purchases it should not be deducted from the credit from the balance transfer. I was assured they would do exactly that and refund the {$6200.00}. Which they did because my account statement showed the credit refund of {$6200.00} on XX/XX/XXXX 

All of that suddenly change the next day when the account was put of fraud alert and I realized I could not log in and that I had to call Discover. When I called I was told that they were suspecting the balance transfer and had to verify the source of the money. The first question I asked them was, if they felt that way about an account that has never missed a payment for over 6years, why did they not return the balance transfer rather than locking down my account and threatening to close the account. That was when I realized they were up to something shady. So my wife and I got on the phone with Discover representative and a representative from XX/XX/XXXX, the bank that made the balance transfer of {$7400.00} and the whole issue of fraud or no fraud was resolved that day, XX/XX/XXXX and my account became accessible again. 

To my utmost surprise, on the XX/XX/XXXX, 4 days after the whole issue with the so-called fraud alert was resolved and five days after the credit refund statement on my account, and nine days after I was told the check has been mailed, Discover on their own reversed the payment of {$6200.00}. I was in disbelieve. So I took the matter up and called their corporate customer service number - XXXX XXXX XXXX and spoke with one XXXX XXXX, who said he was going to resolve the issue. The next day or two, I got a message from their secured message that they are not going to honor the check of {$6200.00} because they had an investigation after they mailed me the check - an investigation that was a complete witch haunt that led to nothing. 

The bottom line was that they want to use my credit balance to offset transactions made after I have been informed that my credit balance has been refunded. Discover wants to earn merchant credit with my refund balance and they think they can get away with it. 

Few days later on XX/XX/XXXX, they mailed me a check of {$3400.00} leaving the account with XXXX balance and using my credit refund to pay for those transactions. 

What this people did in Discover - XXXX XXXX and his team is so mean spirited and it is wrong. They felt they had the means to intimidate a customer who is simply a consumer that is trying to meet his financial obligation but unfortunately fell into the hands of very mean and insensitive people in Discover who are willing to rob a client for their selfish gain.

Company response to consumer: Closed with explanation