Consumer complaint received 2026-01-02 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: DISCOVER BANK
State: NC

Complaint narrative:
PRE-ARBITRATION DEMAND AND NOTICE OF DISPUTE This letter serves as formal pre-arbitration notice and demand pursuant to the arbitration provision contained in Discover Banks Deposit Account Agreement, including Section 35 Arbitration of Disputes. 



Background I was previously enrolled in Discovers Balance+ feature and relied on it for ordinary household cash-flow management, including rent. I used the feature as intended and repaid the Balance+ amount immediately, restoring my account to a positive balance. At no time did I misuse the feature or leave my account overdrawn.

At the time, I was on medical leave from my primary employment and received consistent weekly income of approximately {$400.00} {$600.00} through a gig platform. That income was deposited by ACH into my Discover savings account. I attempted to route this same income to my Discover checking account in order to meet Balance+ eligibility requirements ; however, Discover would not accept this income source into checking, even though it accepted the identical income into savings. 

As a result, Discover created a situation in which it was impossible for me to satisfy the checking direct-deposit requirement and then removed my Balance+ enrollment for failing to meet that requirement. This constitutes a bank-created impossibility of performance. 



Dispute This dispute arises from Discovers conduct, including but not limited to : Blocking a legitimate and recurring income source from being deposited into checking ; Removing Balance+ based on a requirement Discover made impossible to satisfy ; Penalizing me for the absence of a checking deposit that Discover itself prevented ; Providing incorrect legal information through a customer service representative, including statements that my deposit account did not contain an arbitration clause and that I could not pursue arbitration or file complaints because Balance+ is no longer offered ; Mischaracterizing automated system actions as non-disputable.

Arbitration applies to disputes arising from the account relationship and prior conduct, regardless of whether a product is currently offered. Automated decisions do not eliminate a consumers contractual or regulatory rights.

Harm Discovers actions caused financial and housing-related hardship during medical leave and interfered with my ability to manage rent and essential expenses. The harm resulted from Discovers internal restrictions and misinformation, not from any failure on my part. 



Demand and Opportunity to Cure I am providing Discover the opportunity to resolve this matter prior to arbitration. Acceptable resolution includes, but is not limited to : 1. Monetary compensation ; reinstatement of Balance+ if feasible, or account credit equivalent to the loss of the Balance+ benefit and resulting hardship.
2. A temporary accommodation or equivalent relief addressing the bank-created impossibility of compliance ; 3. Written clarification correcting the misinformation provided regarding arbitration and complaint rights ; 4. A written explanation of why Discover accepted the income into savings but refused to accept it into checking.

5. Written assurance that no retaliation or adverse action will be taken against my account ( s ) as a result of this complaint, any CFPB complaint, or the exercise of my contractual arbitration rights. 

If this dispute is not resolved within the required pre-arbitration notice period, I will proceed with filing a consumer arbitration demand with the XXXX XXXX XXXX ( XXXX ) without further notice. 

Nothing in this letter constitutes a waiver of any rights or remedies. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation