Consumer complaint received 2025-06-18 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Getting a line of credit — 
Company: DISCOVER BANK
State: MO

Complaint narrative:
I reached out to Discover to apply for a personal loan on XX/XX/XXXX in the afternoon between XXXX and XXXX XXXX  upon applying for the loan, the associate told me that it was going to be a pre-application and that it only takes a couple of seconds for the system to be determined if Im eligible or not once her system generated that I wasnt available for a loan through them I proceeded to ask her why I wasnt eligible for this loan and she told me that she wasnt sure that I would receive a letter in the mail with the adverse actions on why was denied and being someone that is in the lending department I found that weird that she told me I would have to wait to receive my adverse action so after pressing the situation a little bit, she told me the adverse action on why I was denied with Discover was due to a collection that was placed on my credit through XXXX XXXX from XXXX XXXX XXXX which is a medical bill so I proceeded to ask the lady that I was speaking with if she was aware that the CFPB had published a new regulation and rule regarding lenders using medical collections as a decision factor on a lending application she told me that she wasnt aware of any laws regarding lenders, not to use medical bills as a part of the decisioning factor after she told me she wasnt aware I reached out to XXXX XXXX directly to have them dispute the collection off of my credit which takes 30 days, but in order to try to resolve the issue I called back again today, XX/XX/XXXX around XXXX XXXX  and spoke with a lady named XXXX, who also stated that she was not aware of the CFPB rule regarding lending and that she would give me transferred over to a supervisor once on the phone with the supervisor named XXXX XXXX she also told me that my adverse action that I was given for being denied was due to not only a collection from XXXX XXXX, which shouldnt have been used in the first place because there is a law regarding That She also said I had revolving credit balances that were really high and on none of my credit bureau applications does it show that I have a high balance on any card nor do I have any revolving accounts anymore? I had a revolving account in XXXX and that account moved to a unsecured credit card which is no longer revolving line of credit so after speaking to the supervisor, she told me that the decision would still stick, even though I told her the law that was passed against using medical collections against a consumer for decisioning a loan After she told me I could apply again in 15 days I asked her why would I do that if there are adverse actions being listed against me that should not qualify due to a regulation that was put in place and I asked her if Discover was considered a lender and she replied yes and I asked her so you guys are not aware of a rule regarding lending that was just updated this year and she told me no so I got my reference number for my loan application ref # XXXX also hard to obtain. I was told that I didnt have an application idea reference number at first, and then the second time I mentioned a reference number the supervisor drewelly told me sorry for the confusion and that there is a reference number and provided me with the number. I have listed here after getting off the phone with Discover. I called the CFPB just to see when the regulation that was passed on XX/XX/XXXX of XXXX was enacted the CFPB agent told me that it was an acted on XX/XX/XXXX or XXXX. I cant recall but what I do know is that it was a day before I applied for my loan and I asked the representative for CFPB if a rule or regulation is passed dont lenders have to follow it or abide by it and he simply stated yes, so that is why Im filing this complaint because I had an adverse action that should not have been listed against me used as a decision for my loan and after talking to Discover again today they were not willing to work with me or consider a decision on my loan under the New regulations and rules

Company response to consumer: Closed with explanation