- Report: #1048256
Complaint Review: DISCOVER CARD - SALT LAKE CITY Utah
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Author Not Confirmed
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DISCOVER CARD
PO BOX 30421 SALT LAKE CITY, 84130-0421 Utah, USA
Phone:
18003472683
Web:
WWW.DISCOVER.COM
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DISCOVER CARD CHANGING CARD AGREEMENTS AND HIGH INTEREST SALT LAKE CITY Utah
I am writing today about the predatory lending practices of the Discover Card. I opened the account in 2005 with the standard cash back bonus. I have never paid late in this time. In 2008 Discover card sent me a change of agreement which I could not accept. I chose to opt out and close the account. At this time there was only a charge of slightly more than $300 on the high interest rate. This charge was made to a utility company for electricity.
The Discover card sought to make this a cash advance even though it was clearly not. I did close the account even though this dispute was not settled. Over the years they have sent me statements that appear to have the total interest due each month being paid from the monthly payments I have made. I noticed that over time the interest charges were going up each month until the payment was barely even covering them. I have contacted Discover Card & this is what I was told.
Even though it looks like the monthly interest for the 22.99% cash advance is paid , it has not been credited, instead only the low interest balance has been paid. They also told me that it is completely up to them where the payment is posted. Therefore any payment made can be applied to the low interest balance and no interest has to be credited, and the interest is transferred to the highest rate applied to the account. If they continue to due this the high rate balance will increase unless I pay 2 to 3 times the normal payment.
At the present time they have my balance for 22.99% cash advances at $1482, which was originally only the utility payment that I tried to dispute as not a cash advance. I believe these practices of transferring low interest balances to high interest balances thru a loophole they have tried to establish is entirely illegal and is directly opposite the guidelines of the fair credit & lending act. I have few options at this point other than non-payment until this is resolved, or I can find someone to help with this mess.
