I have a closed credit card account with Discover Card. The original credit line was $1000, but the balance more than doubled with the interest and over-the-limit fees that accrued when I wasn't paying (I was very stupid in college). Currently, the balance is just under $2000. In July 2001, when I was out of school and able to start repaying (and much smarter about my credit) I began to send in at least the minimum balance each month. I realized rather quickly that my balance was still growing rapidly by just paying the minimum, so in January 2002 I called them up and enrolled in their special program for people in my situation (I forget what exactly it's called). They dropped my interest rate to 9.9%, waived the over-the-limit fee, and reduced the minimum payment. For the next twelve months, I continued to pay on time and my balance slowly began to decrease. Then in January of 2003 they contacted me to let me know the program was over and that my interest rate would be returning to the normal rate, the over-the-limit fees would return, and my minimum payment would almost double. Right now, I am paying about $50 a month on the account and my balance is still increasing by about $15/month. I have contacted several departments at Discover to no avail. I am also unable to pay any more beyond what I am currently sending in each month. Needless to say, this is extremely frustrating. While I want to continue to pay on time each month (and I don't want ruin the two years of on-time payments showing on my credit report), I feel like all I am doing is throwing away my money on something that will never go away. Yes, it is completely my fault for being a deadbeat in college and I am fine with paying the extra $1000 in interest and fees. But at this point, I feel like I'm getting so screwed. I'd appreciate any advice or opinions on this situation, particularly from anyone who has dealt with Discover before in this capacity. Sorry this was so long - and thank you in advance.
My first suggestion is to stop being so hard on yourself about the past. We've all screwed up at one time or another. The important thing is that you've made a super effort at showing that you're honorable. Although I've never dealt with Discover, if it were me I'd contact the most senior person (executive offices) that I could. Your explanation as to what has transpired is clear and to the point. Why not cut and paste and send it along to an appropriate executive. As for who that would be or what address is correct, I'll have to leave that to another CNetter. Let us know how it turns out, and be persistent. The only for sure advice I can share is don't give up.
Thank you for the words of encouragement - it is most appreciated! I've sent two letters via PFB and also two to Brice Brown - with no responses. Does anyone have the name and address of a top executive that they've been in contact with? Thanks.
I am going through the same exact thing as you with Discover. My year for that "hardship" program was over in Feb. After that, the minimum payment went up to $125 a month!! I could not pay this much so I paid what I could but I was told by a Discover rep. that by not paying the minimum amount my payment would be considered "late", therefore adding more to my balance. Can't win for losing!!!! Uuuuuuuuuuggggggg!
Well, the "executive offices" at Discover finally called me regarding my letters and told me there was absolutely nothing that they could do for me - couldn't lower my interest rate, waive any fees, nada. They suggested that I should enroll in a credit counseling service that would take over the account and supposedly "stop all the fees and significantly lower the interest" according to them. I know that having credit counseling service on your report is not great, and I've also heard horror stories about companies taking your money and paying late or not at all. On the other hand, I'm throwing money in the toilet and I'm at a loss for other ideas. Any thoughts on this would be very appreciated, especially from anyone who's used a credit counseling service and it worked for them. thanks.
Sorry about Discover. I have not used a credit counseling service, but there's a consumer guru on the radio who is always pointing his callers to the following site. Hope this helps: http://www.nfcc.org/
Thanks for posting again. I really think this is my best bet for now - find a reputable agency and just get this debt paid off. All of my other accounts are paid off or are in good standing - and I'm just so anxious to not have to deal with Discover anymore.
Here's more (from www.clarkhoward.com) Beware of phony credit counseling companies Clark gets so many calls from listeners who are facing huge levels of debt. So, itâ??s no surprise that the number of families seeking credit counseling help each year is outrageous. The crummy thing is that there are a number of crooks in the business that pretend to want to help you. They say that if creditor are hounding you, they have people standing by to negotiate with your creditors and to get you out of debt. They claim to be non-profit services, so people buy in. But as the Consumer Federation of America found out, these outfits are not interested in anything but your money. They sign you up for Debt Management Plans or DMPs, which allow them to take hundreds to thousands of dollars from you and never help you resolve your credit problems. They make their money by taking a cut from what you pay the credit card companies. And, on top of that, they charge you to do it. Many customers end up in the hands of a collector as a result. A real credit counseling agency will do no negotiating with creditors because they are simply there to help you budget. Legitimate agencies also wonâ??t charge you money up front. Or, if they do, itâ??s no more than $20 or $30. And remember that itâ??s very easy for anyone to file as a non-profit with the IRS. Itâ??s traditionally been done on an honor system. But the IRS is now looking into this system and has revoked the non-profit status of many of these companies. The Better Business Bureau gets tons of complaints against these companies. So, if you want to find a legit branch, go to the National Federation of Credit Counseling or the NFCC. The Web site is nfcc.org. They will get you in a plan of action to help you change how you to spend and save your money. And they wonâ??t ask for anything in return.
