Credit card or prepaid card -- Fees or interest -- Complaint #5868386
Complaint Overview
Complaint ID: 5868386
Company: Discover Bank
Product: Credit card or prepaid card
Sub-Product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-Issue: Charged too much interest
State: Nebraska
ZIP Code: XXXXX
Date Received: 2022-08-11T12:00:00-05:00
Date Sent to Company: 2022-08-11T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I reached out to Discover customer service on XX/XX/XXXX to understand how my payments were applied considering I had multiple different interest rates via promotional opportunities. The agent replied : Minimum goes to the lowest apr ( 0 % ) and the rest of the payment applies to the highest apr. and if the highest apr is paid to {$0.00}, then the payment will go to the next highest apr ( promo 4.99 % that expires soonest, XX/XX/XXXX. However, this is not what occurred. On my statement ending on XX/XX/XXXX my balances were as shown below and my minimum payment amount was {$230.00}, due XX/XX/XXXX. {$240.00} at 15.49 % {$5200.00} at 4.99 % ( promo expires XX/XX/XXXX ) {$3100.00} at 0 % ( promo expires XX/XX/XXXX ) {$4000.00} at 4.99 % ( promo expires XX/XX/XXXX ) By the agent 's reply, considering for my statement ending XX/XX/XXXX, and the fact that I made a payment total of {$2300.00}, I should have seen my 0 % balance decrease by {$230.00}, and then my remaining {$2000.00} would have paid the {$240.00} balance completely, and the remaining {$1800.00} would have paid down the 4.99 % APR balance for the promo expiring XX/XX/XXXX. On my statement ending XX/XX/XXXX my balances were shown as below and my minimum payment amount is {$210.00}, due XX/XX/XXXX. {$200.00} at 15.49 % {$4200.00} at 4.99 % ( promo expires XX/XX/XXXX ) {$2900.00} at 0 % ( promo expires XX/XX/XXXX ) {$4000.00} at 4.99 % ( promo expires XX/XX/XXXX ) I reached out to Discover to have them explain and all they replied with is : " We usually apply your minimum payment to the balance with the lowest APR. Anything paid over the minimum typically applies to balance with the higher APR. When you have multiple promotional balances at the same rate, payments apply to the balance expiring first. '' I think Discover is not applying my payments correctly so they can collect additional interest. If the logic Discover gave me held true, my XX/XX/XXXX statement should have seen {$230.00} come off of my 0 % balance, and instead, the balance was only reduced {$220.00}. The my highest apr should have been paid completely, but it was only reduced by {$41.00}, and my remaining payment should have applied to the 4.99 % APR with the promo ending XX/XX/XXXX, and that balance was only reduced by {$1000.00}. My balances were only reduced by a total of {$1200.00} ( not including my balance on the other promo offer increased in the amount of {$17.00} ) but I made payments in the total of {$2300.00}.
Frequently Asked Questions
What is Complaint #5868386 about?
Complaint #5868386 was filed against Discover Bank regarding Credit card or prepaid card specifically about Fees or interest. It was received by the CFPB on 2022-08-11T12:00:00-05:00.
How did Discover Bank respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Credit card or prepaid card) and describe your issue in detail.
Can I see other complaints against Discover Bank?
Yes, visit the Discover Bank company profile at readthecomplaint.com/company/discover-bank to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.