topic Re: Discover 4506-C Secured Request ~ Declined in Credit Card Applications

Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 14:33:34 GMT

Morning,

13th statement closed a couple days ago. Received 4506-C email request. Immediately called to close the card.

~Never unsecured. Started at $200, increased to $1500. Never late, never over the limit, moderate usage etc.,

~Haven't falsified income but if I submit to this request it needs to be for a new account, didn't feel secured was worth it.

Recently approved for a $1000 Target card which is far more valuable to me based on spending habits so this wasn't a particularly hard decision. Might consider Discover again in the future, loved the customer service.

Re: Discover 4506-C Secured Request ~ Declined

Trini88 — Sun, 07 Nov 2021 15:02:28 GMT

Did your request come in a letter with Discover labeled on the front of the envelope.

Re: Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 19:09:26 GMT

@Trini88 wrote:
Did your request come in a letter with Discover labeled on the front of the envelope.

Hi there. It was an email request.

Its possible they also sent it via regular mail but I haven't checked the mail this week.

Re: Discover 4506-C Secured Request ~ Declined

Rebuild2019 — Sun, 07 Nov 2021 15:28:21 GMT

Interesting OP. My question is where does this info end up when you sign off on it. My job of 30-years allowed me to obtain all kinds of information, but your taxes were not part of that. There is a reason your taxes were not part of it. We all need to be a little more careful who you give that access too and why. I would have closed it out. Just MHO.

Re: Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 15:33:20 GMT

@Rebuild2019 wrote:
Interesting OP. My question is where does this info end up when you sign off on it. My job of 30-years allowed me to obtain all kinds of information, but your taxes were not part of that. There is a reason your taxes were not part of it. We all need to be a little more careful who you give that access too and why. I would have closed it out. Just MHO.

Understandable. Honestly I'm not 100% certain I'd comply with this in the future.

If its for income verification purposes check stubs and bank statements should suffice. If its ID verification there are multiple documents I could submit. 🤷🏽‍♀️

Re: Discover 4506-C Secured Request ~ Declined

Rebuild2019 — Sun, 07 Nov 2021 15:38:45 GMT

100% agree. If it’s for a mortgage I completely understand.

Re: Discover 4506-C Secured Request ~ Declined

Trini88 — Sun, 07 Nov 2021 19:10:13 GMT

@Anonymous wrote:
@Trini88 wrote:
Did your request come in a letter with Discover labeled on the front of the envelope.
Hi there. It was an email request.

Its possible they also sent it via regular mail but I haven't checked the mail this week.

Thank you. I also have a secured card with them and yesterday I saw online that I was getting this random letter from Discover but I reported that it never came to my mailbox. Thought it was that same form but you said they email you first so thank you for responding 😃.
As for your situation, that really sucks, I always said if they ever asked me for the same info that it better be after I get my cash back match 😂

Re: Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 19:10:42 GMT

@Trini88 wrote:
@Anonymous wrote:
@Trini88 wrote:
Did your request come in a letter with Discover labeled on the front of the envelope.
Hi there. It was an email request.

Its possible they also sent it via regular mail but I haven't checked the mail this week.

Thank you. I also have a secured card with them and yesterday I saw online that I was getting this random letter from Discover but I reported that it never came to my mailbox. Thought it was that same form but you said they email you first so thank you for responding 😃.
As for your situation, that really sucks, I always said if they ever asked me for the same info that it better be after I get my cash back match 😂

Makes sense. I'd already deposited mine so didn't think about it. 😂

Re: Discover 4506-C Secured Request ~ Declined

practical1 — Sun, 07 Nov 2021 16:07:26 GMT

My initial response to reading your posts would be: this is likely a scam, an attempt to secure very private information for identity theft. It seem preposterous that any legitimate credit issuer would ask for -- or need -- income verification for a secured credit card, specially after you've had an account with them and without any explanation.

Did you happen to call Discover and ask if they actually made this request, or did you simply close the account? I receive calls all the time from scammers claiming to be "MasterCard and Visa Verification Services" or some such -- an immediate hang-up, if their numbers were not already blocked. This kind of thing is becoming an epidemic -- as email phishing is often being blocked by browsers and anti-virus packages, the crooks are getting more and more creative.

Thoughts anyone?

Re: Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 16:06:53 GMT

@practical1 wrote:
Did you happen to call Discover and ask if they actually made this request, or did you simply close the account? I receive calls all the time from scammers claiming to be "MasterCard and Visa Verification Services" or some such -- an immediate hang-up, if their numbers were not already blocked. This kind of thing is becoming an epidemic -- as email phishing is often being blocked by browsers and anti-virus packages, the crooks are getting more and more creative.

Hi there. I confirmed with the rep that this was in fact Discovers request before I asked to close. Never actually clicked anything in the email bc it does look slightly suspicious at first glance.

But based on numerous other threads about the same issue, including a mega thread I can't seem to locate, I was fairly confident this wasn't a scam or fraud. Seems to be Discovers thing.

Re: Discover 4506-C Secured Request ~ Declined

practical1 — Sun, 07 Nov 2021 16:09:52 GMT

@Anonymous

Thanks for the response. All I can say is this seems mighty peculiar to me.

The more I learn about credit card lending and underwriting, the less I seem to understand....lol

Re: Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 16:14:39 GMT

@practical1 wrote:
@Anonymous
Thanks for the response. All I can say is this seems mighty peculiar to me.

The more I learn about credit card lending and underwriting, the less I seem to understand....lol

It is peculiar and seems unnecessarily invasive. Especially for established accounts. Either ask for it from the start or accept the information I've given. smh But all lenders seem to have their quirks.

Just have to assess whether the card value or relationship is worth it. In this case its a no. Aside from hearing > You're doing everything right, don't worry, you're definitely on the right track etc., while waiting for this card to unsecure I didn't find it nearly as useful as I initially thought. But I did add another card in the meantime and shifted most of my spend there the last couple months so that was part of it.

Re: Discover 4506-C Secured Request ~ Declined

Remedios — Sun, 07 Nov 2021 16:15:05 GMT

@practical1 wrote:
My initial response to reading your posts would be: this is likely a scam, an attempt to secure very private information for identity theft. It seem preposterous that any legitimate credit issuer would ask for -- or need -- income verification for a secured credit card, specially after you've had an account with them and without any explanation.

Did you happen to call Discover and ask if they actually made this request, or did you simply close the account? I receive calls all the time from scammers claiming to be "MasterCard and Visa Verification Services" or some such -- an immediate hang-up, if their numbers were not already blocked. This kind of thing is becoming an epidemic -- as email phishing is often being blocked by browsers and anti-virus packages, the crooks are getting more and more creative.

Thoughts anyone?

It's not a scam/phishing/crooks. Utilize search function and you shall see that this is a very common request from Discover.

Re: Discover 4506-C Secured Request ~ Declined

practical1 — Sun, 07 Nov 2021 17:13:42 GMT

Thanks for this education, folks. I've never had a Discover card nor had any reason to explore their particular corporate behaviors -- so my ignorance shows.

If in a similar situation, I'd certainly agree with other posters for a major, long-term loan (e.g. a mortgage, etc.) then I'd view tax returns requests as completely appropriate. For secured products, way too invasive -- and completely beside the whole point! Lenders are fully protected with cash collateral; why on Earth would anything else be required to support the extension of credit.

Not that this is at all to the point, but a perhaps interesting story for anyone interested in "thinking outside the box" to address financial situations:

Many years ago, my then-wife insisted that we purchase a co-op apartment in New York City. Very long story, but cutting to the chase: I had more than enough verifiable income, assets, credit, etc. to support the purchase, including a firm mortgage committment from a major bank. None of this was good enough to satisfy the co-op board of my financial standing. They demanded that I pre-pay the first 2 years of common charges, to be approved for the building. Totally outrageous! Of course, I walked away.

My wife, however was 8 1/2 months pregnant at the time and absolutely disconsolate. She loved that apartment and wanted it desparately. After hearing her cries for days, I relented -- but still wasn't willing to accede to this stipulation -- I didn't trust these lousy people with 10 cents of my money and further, there was a larger principle at stake.

My solution: I offered them a stand-by letter of credit, issued by any bank of their choosing. Kept my cash in an interest-bearing CD, made my payments and solved the problem. Of course, it took my lawyer hours to explain what this was and how it would work -- no personal transaction like this had ever been done New York previously, but everyone got what they needed.

Of course, it helped that I was teaching Finance and Risk Engineering at the time and knew a thing or two about the subject....

The moral of the story remains the same old bromide "Illigitemi non te carorundum" MOD CUT - Language

Re: Discover 4506-C Secured Request ~ Declined

Remedios — Sun, 07 Nov 2021 17:24:11 GMT

@practical1 wrote:
Thanks for this education, folks. I've never had a Discover card nor had any reason to explore their particular corporate behaviors -- so my ignorance shows.

If in a similar situation, I'd certainly agree with other posters for a major, long-term loan (e.g. a mortgage, etc.) then I'd view tax returns requests as completely appropriate. For secured products, way too invasive -- and completely beside the whole point! Lenders are fully protected with cash collateral; why on Earth would anything else be required to support the extension of credit.

Not that this is at all to the point, but a perhaps interesting story for anyone interested in "thinking outside the box" to address financial situations:

Many years ago, my then-wife insisted that we purchase a co-op apartment in New York City. Very long story, but cutting to the chase: I had more than enough verifiable income, assets, credit, etc. to support the purchase, including a firm mortgage committment from a major bank. None of this was good enough to satisfy the co-op board of my financial standing. They demanded that I pre-pay the first 2 years of common charges, to be approved for the building. Totally outrageous! Of course, I walked away.

My wife, however was 8 1/2 months pregnant at the time and absolutely disconsolate. She loved that apartment and wanted it desparately. After hearing her cries for days, I relented -- but still wasn't willing to accede to this stipulation -- I didn't trust these lousy people with 10 cents of my money and further, there was a larger principle at stake.

My solution: I offered them a stand-by letter of credit, issued by any bank of their choosing. Kept my cash in an interest-bearing CD, made my payments and solved the problem. Of course, it took my lawyer hours to explain what this was and how it would work -- no personal transaction like this had ever been done New York previously, but everyone got what they needed.

Of course, it helped that I was teaching Finance and Risk Engineering at the time and knew a thing or two about the subject....

The moral of the story remains the same old bromide "Illigitemi non te carorundum" MOD CUT - Language

I am not sure what exactly you mean by "Lenders are fully protected with cash collateral". This card graduates, deposit is returned, collateral gone. Consumer is no longer playing with their own money.

As far as why, lenders have many ways of independently verifying income, typically a discrepancy between reported income and data they receive will trigger requests like this ( as an example, couple keeps their finances separate and files taxes separately, but include each other's income on application). If lender receives income information from third party, they will proceed to verify since now there is discrepancy in income. If one cannot prove it, one should not put in on the application. Those who decided to comply with the request and income matched had access to card restored, those who did not with to proceed or where income did not match (majority of cases) had cards closed.

As far as sending tax returns for any purpose, personal call. It's been discussed many times and it's also accessible via search function. It's up to the individual to determine when/if they want to give them up...or not.

Re: Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 17:44:25 GMT

@Remedios wrote:
@practical1 wrote:
Thanks for this education, folks. I've never had a Discover card nor had any reason to explore their particular corporate behaviors -- so my ignorance shows.

If in a similar situation, I'd certainly agree with other posters for a major, long-term loan (e.g. a mortgage, etc.) then I'd view tax returns requests as completely appropriate. For secured products, way too invasive -- and completely beside the whole point! Lenders are fully protected with cash collateral; why on Earth would anything else be required to support the extension of credit.

Not that this is at all to the point, but a perhaps interesting story for anyone interested in "thinking outside the box" to address financial situations:

Many years ago, my then-wife insisted that we purchase a co-op apartment in New York City. Very long story, but cutting to the chase: I had more than enough verifiable income, assets, credit, etc. to support the purchase, including a firm mortgage committment from a major bank. None of this was good enough to satisfy the co-op board of my financial standing. They demanded that I pre-pay the first 2 years of common charges, to be approved for the building. Totally outrageous! Of course, I walked away.

My wife, however was 8 1/2 months pregnant at the time and absolutely disconsolate. She loved that apartment and wanted it desparately. After hearing her cries for days, I relented -- but still wasn't willing to accede to this stipulation -- I didn't trust these lousy people with 10 cents of my money and further, there was a larger principle at stake.

My solution: I offered them a stand-by letter of credit, issued by any bank of their choosing. Kept my cash in an interest-bearing CD, made my payments and solved the problem. Of course, it took my lawyer hours to explain what this was and how it would work -- no personal transaction like this had ever been done New York previously, but everyone got what they needed.

Of course, it helped that I was teaching Finance and Risk Engineering at the time and knew a thing or two about the subject....

The moral of the story remains the same old bromide "Illigitemi non te carorundum" MOD CUT - Language

I am not sure what exactly you mean by "Lenders are fully protected with cash collateral". This card graduates, deposit is returned, collateral gone. Consumer is no longer playing with their own money.

Except the consumers card in question had not graduated. Discover seems to send this request to unsecured members as frequently as with graduated cards. But agree its a personal choice in the end.

As far as the search engine...its not particularly helpful. Its never been especially helpful on this platform honestly. Even playing around with settings. So I understand encouraging its use but for any of you that did in fact attempt it with less than adequate results I understand that too.

Re: Discover 4506-C Secured Request ~ Declined

practical1 — Sun, 07 Nov 2021 17:47:06 GMT

As long as a card is secured, it has required cash collateral behind it.

No one mentioned "graduation" in these few posts -- that's an entirely different matter. When, where and if credit is actually extended by lender, they of course, may choose to verify creditworthiness in any manner that their underwiting criteria requires; then it becomes up to the potential borrower to decide whether they choose to comply with documentation requests (or not) and seek credit approval. As we all know, many secured cards offer this future potential, under varying terms and policies.

Not seeing the ambiguity here. Am I missing something?

Re: Discover 4506-C Secured Request ~ Declined

Jnbmom — Sun, 07 Nov 2021 19:10:30 GMT

If you search using key words, it is highly effective. This happens very often with disco secured and unsecured.

I too would not give them access, but that's my personal choice.

Re: Discover 4506-C Secured Request ~ Declined

Anonymous — Sun, 07 Nov 2021 19:18:25 GMT

@Jnbmom wrote:
If you search using key words, it is highly effective. This happens very often with disco secured and unsecured.

I too would not give them access, but that's my personal choice.

I only search using key words 🤷🏽‍♀️ But the results are usually extremely outdated or not relevant. I do have better luck searching via Google with keyword/myfico forums though. No issues there.

Might just be me. Totally possible

Re: Discover 4506-C Secured Request ~ Declined

Remedios — Sun, 07 Nov 2021 19:26:15 GMT

@Anonymous wrote:
@Remedios wrote:
@practical1 wrote:
Thanks for this education, folks. I've never had a Discover card nor had any reason to explore their particular corporate behaviors -- so my ignorance shows.

If in a similar situation, I'd certainly agree with other posters for a major, long-term loan (e.g. a mortgage, etc.) then I'd view tax returns requests as completely appropriate. For secured products, way too invasive -- and completely beside the whole point! Lenders are fully protected with cash collateral; why on Earth would anything else be required to support the extension of credit.

Not that this is at all to the point, but a perhaps interesting story for anyone interested in "thinking outside the box" to address financial situations:

Many years ago, my then-wife insisted that we purchase a co-op apartment in New York City. Very long story, but cutting to the chase: I had more than enough verifiable income, assets, credit, etc. to support the purchase, including a firm mortgage committment from a major bank. None of this was good enough to satisfy the co-op board of my financial standing. They demanded that I pre-pay the first 2 years of common charges, to be approved for the building. Totally outrageous! Of course, I walked away.

My wife, however was 8 1/2 months pregnant at the time and absolutely disconsolate. She loved that apartment and wanted it desparately. After hearing her cries for days, I relented -- but still wasn't willing to accede to this stipulation -- I didn't trust these lousy people with 10 cents of my money and further, there was a larger principle at stake.

My solution: I offered them a stand-by letter of credit, issued by any bank of their choosing. Kept my cash in an interest-bearing CD, made my payments and solved the problem. Of course, it took my lawyer hours to explain what this was and how it would work -- no personal transaction like this had ever been done New York previously, but everyone got what they needed.

Of course, it helped that I was teaching Finance and Risk Engineering at the time and knew a thing or two about the subject....

The moral of the story remains the same old bromide "Illigitemi non te carorundum" MOD CUT - Language

I am not sure what exactly you mean by "Lenders are fully protected with cash collateral". This card graduates, deposit is returned, collateral gone. Consumer is no longer playing with their own money.
Except the consumers card in question had not graduated. Discover seems to send this request to unsecured members as frequently as with graduated cards. But agree its a personal choice in the end.

As far as the search engine...its not particularly helpful. Its never been especially helpful on this platform honestly. Even playing around with settings. So I understand encouraging its use but for any of you that did in fact attempt it with less than adequate results I understand that too.

I know it did not graduate yet, grammar in my post clearly indicates present continuous tense, indicating an ongoing process.