Consumer complaint received 2025-07-17 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Can't use card to make purchases
Company: DISCOVER BANK
State: DE

Complaint narrative:
On XX/XX/year> i recieved an email from Discover Card saying my account will be placed on hold because it requires my consent to receive tax information from the Internal Revenue Service ( IRS ) to verify information on your account. They said i can expect a separate email from " XXXX Verification Services '' ( sent via XXXX ) with the subject line : " Response Required : On behalf of Discover Card, XXXX XXXXerification Services Has Sent You IRS Consent Form XXXX to Sign on hold. 

On XX/XX/year>, at XXXXXXXX XXXX I engaged in a conversation with XXXX, a representative from Discover 's verification department, regarding the issue of my card declining transactions despite having an avaliable credit of {$1400.00}. I was informed that this issue arose because my account required verification, necessitating the completion of a 4506-C form. I communicated to XXXX that I had neither filed my taxes nor applied for a loan or credit increase, and inquired whether there was an alternative method to verify my identity. XXXX responded that Discover exclusively verifies accounts through the aforementioned form, despite the existence of other verification methods, and insisted that this form was specifically required from me. 

On XX/XX/year>, at XXXXXXXX XXXX, I contacted Discover again and spoke with XXXX to inquire whether my Discover account had been flagged for fraud. XXXX informed me that it had not been flagged. I explained my situation regarding my card being declined, and she transferred me to the verification center. Upon speaking with customer representative XXXX, she indicated that I needed to complete the 4506-C form, despite not having filed my taxes. Subsequently, I would be required to fill the 4506- C form and sign another form and provide additional information, such as a pay stub. I informed her that I had not requested a credit line or loan, to which she responded that everyone receives a verification request with a Discover account. When I inquired whether everyone must file a 4506-C form as the sole method of account verification, XXXX affirmed this. I requested a written statement explaining the necessity of completing that specific form, but she stated she was unable to provide one. When I asked if she could escalate the case or if I could speak to someone with higher authority, she indicated that she was the highest authority available. Upon inquiring about filing a complaint, she stated that the only method was to send a letter to a XXXX XXXXXXXX, with the address provided by XXXX being XXXX XXXX XXXX XXXX XXXX, OH XXXX. However, this is not the correct address for filing a complaint ; the appropriate addresses are Discover Financial Services XXXX. XXXX XXXX, XXXX XXXX XXXX, UT XXXX, and Discover Financial Services XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, DE XXXX. 

From my understand Discover does not Discover does not exclusively use IRS Form 4506-C to verify accounts but they may request it in specific situations, especially involving : Credit line increases, New credit card or loan applications, and Income verification ( especially for high-risk or high-limit requests ) IRS Form 4506-C is used to authorize a third party ( like Discover ) to request your tax return transcripts directly from the IRS. It provides : Proof of income, Tax filing status, Verification that income matches your stated application. It is typically used when : Your income is self-reported ( self-employed, gig workers, etc. ) W-2s or pay stubs are unavailable or insufficient, and Youre applying for large credit limits or personal loans Form my understandsind Discover might request 4506 -C when : Income verification is required for a high-limit request, There are discrepancies or fraud flags, and Youre applying for certain financial products ( like a personal loan ). none of these apply to me.

While most applicants are verified using : credit bureaus XXXX XXXX XXXX XXXX XXXX or Pay stubs, W-2s, or direct deposit records Common Ways Discover Verifies an Account Credit Bureau Verification - Pulls data from XXXX XXXX XXXX XXXX Confirms this includes identity ( name, DOB, SSN ), credit history reported, income existing accounts or debt. This is most common for credit card applications 2. Two-Factor Authentication (
2FA ) - Used when logging in, resetting password, or making changes, may send a one-time passcode to : my registered mobile phone Your email address. This is used to verify account access 3. Document Upload- Discover may request copies of : government-issued ID ( drivers license, passport ), proof of address ( utility bill, lease agreement ), social security card , pay stubs or W2s for income verification. This is often required if your info can't be verified electronically or for fraud review 4. IRS Form 4506-C- authorizes Discover to retrieve your tax return transcripts from the IRS Used for : high credit limits, self-employed income verification, personal loans or special accounts. This is not always required used when standard documents are insufficient 5. Phone Verification- Discover may call you to verify your identity or details on an application or transaction. You can also call XXXX to verify inbound requests. This is often used after suspicious activity or if online verification fails XXXX. Account Activity Verification- Confirming recent transactions or security questions. This may happen during suspicious login attempts or account recovery. This is a common fraud prevention step.

Company response to consumer: Closed with explanation