Consumer complaint received 2024-11-06 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: DISCOVER BANK
State: AL

Complaint narrative:
I am filing a formal complaint against Discover Bank, issuer of my Discover credit card, regarding a late payment that was inaccurately reported on my credit report for my account number ending XXXX. The payment was made on time, but Discovers internal payment processing system caused a delay, which led to the payment being marked as late on my credit report.

I made my payment via ACH bank transfer from my linked bank account. However, Discover did not process the payment immediately, which led to a situation where my bank balance was {$0.00} short of the required payment amount by the time Discover finally deducted the funds from my account, causing the payment to be returned as insufficient funds. 

Key Issues : 1. Delayed Payment Processing : Discover does not allow for immediate payment processing, nor does it allow debit card payments via their website only over the phone. While I am aware that payments can be made via the phone, I was out of the country on military service at the time of the payment. Being abroad, I had no access to phone services, making it impossible for me to make the payment in a timely manner using the only available method.

2. Insufficient Funds Due to Payment Delay : As a result of Discovers delayed processing, I was unaware that my bank balance was {$0.00} lower than required for the payment. I could have transferred the necessary funds into my account, but due to the lack of transparency in when Discover would process the payment and the limitations of available payment methods, and my obligation to military making impossible to for to keep checking my account to see if discover took the money yet to make sure the balance is high even ever second of every day, this issue could not have been reasonably avoided.

3. Unreasonable Payment Method Restrictions : I believe Discovers payment system is unreasonable and unfair. The company does not allow for immediate payment processing via debit card on its website, and the only alternative is to call in the payment over the phone. This lack of flexibility, particularly when a customer is abroad and can not make phone calls, prevents timely payments. Discover should provide more accessible payment options, such as online debit card payments or instant bank transfers, to prevent situations like this from happening.

Violations of Consumer Protection Laws : 1. Fair Credit Reporting Act ( FCRA ) : Under the Fair Credit Reporting Act, all information reported to credit bureaus must be accurate and complete. Since the payment was made on time, and the late payment occurred
solely because of Discovers delayed processing and the unavailability of timely payment methods, I believe this late payment was inaccurately reported. This is a violation of the FCRA, which mandates that only accurate information be reported.

2. Electronic Fund Transfer Act ( EFTA ) : The Electronic Fund Transfer Act requires financial institutions to process electronic payments in a timely manner. Since Discover does not allow immediate processing of payments and delays the payment for multiple days, it makes it nearly impossible for customers, especially those like myself who are unable to call due to being abroad, to ensure the required funds are available at the time Discover chooses to deduct the payment. This constitutes an unreasonable delay in processing and violates the spirit of the EFTA. 

Steps Taken : I have already contacted Discover customer service on XX/XX/year> to resolve this issue, but I have not been able to obtain a satisfactory resolution. They have not removed the late payment from my credit report, despite the fact that the payment was made on time and the issue arose because of Discover 's delayed payment processing system and the lack of available payment methods. 
Have made payment of this account via debit card upon returning from overseas and barely have a balance. 


I respectfully request your assistance in resolving this matter. Please let me know if additional information is needed. 

Thank you for your attention to this issue.

Company response to consumer: Closed with explanation