Hi all, sorry, this will be a bit lengthy, but any insight is appreciated.. Discover continually raised the APR even though I was in good standing. When I called to get the rate lowered, I was told I was not eligible, but the rep could't tell me why. Supposedly, I had to fill out a manual form that will authorize them to run a credit check, and based on that result, they would make a decision. I pointed out that that would constitute universal default, which was not mentioned in the Cardmember Agreement. As per agreement, they could only look at 11 months of billing. Under their Privacy section they just state that they may conduct credit checks 'from time to time', but nowhere does it say that these checks would determine my APR. The supervisor then told me that this was a 'proprietary information that does not need to shared with the public'. I replied that I am not the public but a cardmember with an established business relationship governed by the CA. And if that procedure was not in there it wouldn't really be allowed. Well, she got testy and referred me to the corp office to file a petition. I researched their website which states under "Important Information" that ALL conditions of this account are in the Cardmember Agreement. Thus, if it is not in the CA, I can't be enforced, right? Additionally, I was unable to find an actual CA online, unless I am really dense. The only copy I have was one that I requested after my initial conversation in December 2005. I sent 2 dispute notifications my mail, 1 in January and 1 in March, which I can prove I sent, but got absolutely no response, another violation of their own agreement. After the March letter I quit paying on the card, and it went into collections. The account was closed in July by them. In August I got a notification of attorney placement to get a judgment against me if I did not contact them. While I prepared my third letter with all the documentation again, I called them again just to let them know I was sending yet another letter of dispute. They stated they had no record of my dispute, and if it went to corp it would not be noted on the acct. They tried to tell me I had no leg to stand on, and pressured me into paying. They asked for an outraguous sum to get the payment plan going by the next day ( !!). I sent the third letter of dispute CM/WRC, so hopefully that will stir them into action. I asked to cease any legal action against me immediately, clean up my credit report, and also mentioned in the letter that they are in violation of FDCPA and FCRA which I will legally pursue if they don't comply. BTW, Discover was sued in Oct 2004 by UCAN.org San Diego over universal default provisions in their CA, and they lost and had to change the CA in spring 2005. Now it seems they are back at it again, trying to get it done through the back door... I'm still researching Texas state laws, but it's a slow going.. I am also wondering if Discover's state of jurisdiction, which is Delaware, applies here, or if they would have to file a suit in my county of residence... I have about 12K at stake here, so any honest feedback would help..Thanks!
discover i got my rate at variable from discover for 24% , it started at 12% and i paid $163 last month and they took $4 off the balance, i called them then threw my bill in the trash! can they swipe my bank account if i dont pay?
debwel, from what I have read, yes, they can get your assets, garnish your wages, put a lien on your house unless it's a homestead, IF they can get a judgment against you. And that is the scary part, that a initially unsecured debt now becomes secured through a tangible asset. So the key is, I guess, to block that judgment. But I am not an attorney, so I can only hope that what info I have is correct. I do have an appointment for a consultation next week. BTW, I tried again to find a Cardmember Agreement on the account web site - have you tried that? Have you been able to find it?? If so please share, I don't want to be proven wrong by 'the enemy' at such a crucial moment..
Ok, first off, I think CC companies pulling this crap is wrong. With that said, they don't just jack you. You have the right to close the account at the same APR. The problem with doing this is your credit will take a hit until the balance is paid off.
Debwel, as per Texas attorney general, they can not garnish wages or seize a homestead... http://www.oag.state.tx.us/ag_publications/txts/debt.shtml Hey gib, thanks for the input, I agree. They already shot my credit, so no major loss there,. BTW, I saw another case just like this one in Maryland, a lady sued them for breach of contract due to raising interest rates. They sued here in state court, she counter sued in federal court, and then they argued she did not have the right to sue, but had to go to arbitration instead...don't know yet how that all panned out in the end, but I'll keep looking ... it's getting better by the minute.
enough, no i havent found the agreement, i owe discover 8000, and they raised my credit limit and also uped my monthly payment to 175, so i guess if i were to pay this bill 5 dollars will come off my balance. its in the trash, i refuse to pay that, i told the woman i spoke to on the phone it would take several lifetimes to pay that off! i should go max out my card, still has about 880 till i reach the limit! but i cant do that! i think discover is a legal mafia group! i am just worried they will swipe my bank account too. i think i will get my name taken off our bank account. cause this was my cc account before me and my husband got married. i dont care if my credit gets ruined, i have 6 cars , dept store cards and a homesteaded home. i dont need this bs from discover , and i am not paying, but if u find out if they can swipe our banks, let me know. i live in texas too! thanx!
Debwel, I'm glad I'm not the only one having a hard time finding the agreement.. interesting... there's another nail in the coffin. Could it be they have something to hide? Would any other card holders in this forum please please check if they are able find the CA online? Discover did the same thing to me like they did to you, increasing the credit limit to lure you into buying more stuff (although I didn't fall for that), and to allow them to post more finance charges and fees, thus inflating the overall balance they think they are entitled to. It seems you're way better off then me, so by all means quit using that card. Also because I keep hearing this rumor that they can't really sue you for any charges that are more than 6 months old, but I have not found the law to back that up yet... if I did, I'd be done with this whole drama, it's a nail biter. BTW, check out the new Privacy Policy on the web site, effective January 2006.
debwel, I talked to my attorney, he confirmed that they can swipe your cash, but would have to jump through all sorts of judicial hoops to do so. He agreed I brought up some interesting points. He advised me to wait until their attorney contacts me, and deal with the attorney directly, present my case to him, and trying to settle with him rather than the CC. Supposedly, noone likes to drag this to court and spend a lot of time on it until something is settled and then needs to be enforced. I need to think about that, I will certainly wait for Discover's response to my last letter first. BTW, did you get the CA agreement in the Jan 24, 2006 statement? Did you notice that they changed the APR to be able to charge you 5% higher APR as soon as you are late paying? Has anybody else on this forum had trouble with this CC?
Oh I forgot, the issue about not being liable for charges older than 6 months is obviously not true. SOL for Texas is 4 years, so they are entitled to that. And they may file suit in Delaware, but usually do that in the customer's jurisdiction. We shall see ..
So they can get into our checking accounts? or freeze them? please respond soon to this so i can get my name taken off of my account. i think they would jump through hoops for 8 grand, plus the interest that is about to start piling up! thanks enOugh! i wish you luck as well ,dealing with this "con" company.
about the card agreement , i dont know, i usually dont read all that stuff. cause i use to be to trusting.sure learned a lesson with this card! i shall read everything from now on! but i was never late and they raised mine anyway.
If you are depending on a particular rate on a CC, with no way out to an alternative, you are setting yourself up. Any CC company will raise your rates if they think your credit picture has worsened, even with no negs, but just higher balances, and even if it is a "fixed rate" card. Your best protection is to have available credit, with multiple CC companies, of 2 to 3 times your total balances, so you don't appear as risky, and if one company jacks your rate, you move to another. In addition, if the interest rate is for purchases, they are more likely to raise it than if it was a BT to a fixed rate until paid. Even well managed, CC borrowing is no substitute for spendable cash flow. Based on your financial position as you have described it, you have dug yourself into a CC hole, and Discover doesn't want to be the one stuck. You have more debt than you can handle payments on and make real progress paying off, and the faster you cut your expenses, or raise your income, and get it paid down, the sooner you will get out of this jam.
i am not going to pay it , i threw it in the trash. just bought a brand new, $50,000 taho (cant even spell it) lol, since my credit is going to be gone, just bought a pathfinder in nov. i am gonna let them repo it, it is such a junky suv. so that is our last vehicle , we have too many which are paid for, but i have decided we dont need anymore credit, we have enough stuff! but i am gonna take my name off bank account, cause this stuff i am refusing to pay is in my name, not my husbands. might put my moms name on our account, just to be safe! and take both of our names off of it! but i will not pay that cc one more dime. they can stick it. $4 off of my balance a month is BS!
Debwel, I haven't heard back from them on my registered mail with return receipt yet, it's been 12 days, and I don't even have the signed receipt back. Maybe they are refusing to accept it.. we'll see. They will have to get a court order first before they can seize or freeze anything. But I am not about let it come to that point. Keep in mind, though, that if you don't dispute, you won't have a leg to stand on later on, and you removing your name off the account may be construed as a deliberate attempt to circumvent your obligations.... I don't think a judge would like that.. Hey Ontrack, I generally agree with your points, and I have been a very good CC customer for many many years. BUT if they decide to VIOLATE their own agreement that binds both of us, they are just as responsible for that as I am if I violate it. They don't waste a minute to penalize you if you break one of their agreement provisions, but they seem to be very nonchalant about their own obligations, and flat refuse to deal with you when you point out their own transgressions...during my last conversation with them they told me outright they did not have any more time to talk to me.. The point is not that I am not willing or able to pay, the point is that THEY decided not to follow their own rules repeatedly, both by the way they calculate the interest rate and by failure to respond to a dispute, and they way it was reported to the CRAs, but they expect ME to carry that burden. There are laws in this land that go for all of us. Plus, I don't believe they want you paying off the card, as long as you carry and increase a balance, they make more money. I remember one conversation with them a few years back, they called me to sell me the credit protection protection program, which I declined because it would effectually increase the balance even more.. And then the rep asked me (quote):" I see that you have not been using this card in almost a year, are you trying to pay it off or something?" - yes, that would be the goal, I replied.
