topic Re: Random Discover 4506-C Request in Credit Cards

Random Discover 4506-C Request

KatrinaE — Sat, 17 Dec 2022 19:28:50 GMT

Has anyone had any experience with this situation?
Had my discover cards for at least 10 years. Received an email this afternoon from Discover:

Discover® Financial Services requires your consent to receive income information from the Internal Revenue Service (IRS) to verify information on your account.

You can expect a separate email from "Verification Services" (sent via AdobeSign) with the subject line: "Verification Services" Has Sent You IRS Consent Form 4506-C to Sign. Please follow the step-by-step instructions in the email within five days.

Note: If the email is not in your inbox, please check your junk mail or spam folders.

Prompt action must be taken in order to validate your account information for continued use. Until this verification is complete, a temporary hold has been placed on your account. If for any reason you are unable to complete the consent form, please contact us directly at 800-203-4969, or call the phone number on the back of your card.

Once Discover has received and processed the IRS information, you will be contacted in writing to advise that the review of your account is completed.

We appreciate your prompt attention and cooperation.

Thank you,

Discover Financial Services

I then receieved the subsequent email from Equifax with a link to the filled out 4506 form including SS number for me to sign. They are requesting 2020 and 2021 tax returns. I own two businesses - tax returns for 2020 were filed with an extention and extension was filed and were just filed two weeks ago so there will not be a transcript avail for several weeks.

Anyone know what is going on with the sudden increase for this form that is usually used in Mortgage Lending being used now for Credit Cards?

Re: Random Discover 4506-C Request

Kforce — Sat, 17 Dec 2022 20:18:30 GMT

The last few years, Discover has been asking for them.

Seems random from MyFico posters.

Some have been new accounts, others old and seasoned.

Some right after a BT or CL increase and others just out of the blue.

Low income to high, light use to heavy.

Have never seen any real pattern.

When IRS was way behind (Covid), they were accepting bank statements.

Have no info if that option is still open.

We all have the option to walk away if we don't like the rules they've created.

Because of this recent Disco verification system, I have stoped recomending them.

Use to recomend as a first or second card for young, thin profiles.

Re: Random Discover 4506-C Request

Horseshoez — Sat, 17 Dec 2022 20:24:56 GMT

To kind of dovetail on what @Kforce said, if I any of my credit card issuers hit me with a 4506-C request, the only response they'd get from me is my card(s), cut in half, back in the mail. There are plenty of credit card issuers out there, Discover is nothing special and it is time for them to learn that.

Re: Random Discover 4506-C Request

FinStar — Sat, 17 Dec 2022 20:33:41 GMT

@KatrinaE wrote:
Has anyone had any experience with this situation?
Had my discover cards for at least 10 years. Received an email this afternoon from Discover:

Discover® Financial Services requires your consent to receive income information from the Internal Revenue Service (IRS) to verify information on your account.
You can expect a separate email from "Verification Services" (sent via AdobeSign) with the subject line: "Verification Services" Has Sent You IRS Consent Form 4506-C to Sign. Please follow the step-by-step instructions in the email within five days.
Note: If the email is not in your inbox, please check your junk mail or spam folders.
Prompt action must be taken in order to validate your account information for continued use. Until this verification is complete, a temporary hold has been placed on your account. If for any reason you are unable to complete the consent form, please contact us directly at 800-203-4969, or call the phone number on the back of your card.
Once Discover has received and processed the IRS information, you will be contacted in writing to advise that the review of your account is completed.
We appreciate your prompt attention and cooperation.
Thank you,
Discover Financial Services

I then receieved the subsequent email from Equifax with a link to the filled out 4506 form including SS number for me to sign. They are requesting 2020 and 2021 tax returns. I own two businesses - tax returns for 2020 were filed with an extention and extension was filed and were just filed two weeks ago so there will not be a transcript avail for several weeks.

Anyone know what is going on with the sudden increase for this form that is usually used in Mortgage Lending being used now for Credit Cards?

What is the current balance on your Discover card? Is it one or 2 Discover CCs? When did you last receive or request a CLI? When you initially applied for the card, did you input SE income?

Re: Random Discover 4506-C Request

Kforce — Sat, 17 Dec 2022 20:48:57 GMT

@Horseshoez wrote:
To kind of dovetail on what @Kforce said, if I any of my credit card issuers hit me with a 4506-C request, the only response they'd get from me is my card(s), cut in half, back in the mail. There are plenty of credit card issuers out there, Discover is nothing special and it is time for them to learn that.

^^^^ This

However I also believe you and I are not the norm.

Re: Random Discover 4506-C Request

FinStar — Sat, 17 Dec 2022 20:54:14 GMT

@Kforce wrote:
@Horseshoez wrote:
To kind of dovetail on what @Kforce said, if I any of my credit card issuers hit me with a 4506-C request, the only response they'd get from me is my card(s), cut in half, back in the mail. There are plenty of credit card issuers out there, Discover is nothing special and it is time for them to learn that.
^^^^ This
However I also believe you and I are not the norm.

And, there are others who likely do not mind providing the information, albeit an inconvenience + depending on the circumstances. Discover isn't going "to learn" anything by someone refusing to provide consent. They're still lending daily 🤷‍♂️

Re: Random Discover 4506-C Request

Jnbmom — Sat, 17 Dec 2022 21:01:10 GMT

@Kforce wrote:
@Horseshoez wrote:
To kind of dovetail on what @Kforce said, if I any of my credit card issuers hit me with a 4506-C request, the only response they'd get from me is my card(s), cut in half, back in the mail. There are plenty of credit card issuers out there, Discover is nothing special and it is time for them to learn that.
^^^^ This
However I also believe you and I are not the norm.

I am also in this group no way in heck I am giving any credit card my consent for my taxes . If or when this may happen I will move on from them and not look back .

But there are others that don't mind obliging and that's fine too.

Re: Random Discover 4506-C Request

Horseshoez — Sat, 17 Dec 2022 21:13:54 GMT

@FinStar wrote:
@Kforce wrote:
@Horseshoez wrote:
To kind of dovetail on what @Kforce said, if I any of my credit card issuers hit me with a 4506-C request, the only response they'd get from me is my card(s), cut in half, back in the mail. There are plenty of credit card issuers out there, Discover is nothing special and it is time for them to learn that.
^^^^ This
However I also believe you and I are not the norm.
And, there are others who likely do not mind providing the information, albeit an inconvenience + depending on the circumstances. Discover isn't going "to learn" anything by someone refusing to provide consent. They're still lending daily 🤷‍♂️

Playing "Devil's Advocate" here, I would argue if a significant percentage, say 20%, of folks required to provide 4506-C information opt instead to close their accounts, upper management will become well aware of it. Having watched management in many different industries, Financial Services among them, there will be two questions which bubble to the top:

What percentage of account closures will constitute a need for action?
If a need for action is determined, what will the resulting action be?

Re: Random Discover 4506-C Request

FinStar — Sat, 17 Dec 2022 21:26:42 GMT

@Horseshoez wrote:
@FinStar wrote:
@Kforce wrote:
@Horseshoez wrote:
To kind of dovetail on what @Kforce said, if I any of my credit card issuers hit me with a 4506-C request, the only response they'd get from me is my card(s), cut in half, back in the mail. There are plenty of credit card issuers out there, Discover is nothing special and it is time for them to learn that.
^^^^ This
However I also believe you and I are not the norm.
And, there are others who likely do not mind providing the information, albeit an inconvenience + depending on the circumstances. Discover isn't going "to learn" anything by someone refusing to provide consent. They're still lending daily 🤷‍♂️
Playing "Devil's Advocate" here, I would argue if a significant percentage, say 20%, of folks required to provide 4506-C information opt instead to close their accounts, upper management will become well aware of it. Having watched management in many different industries, Financial Services among them, there will be two questions which bubble to the top:
What percentage of account closures will constitute a need for action?
If a need for action is determined, what will the resulting action be?

Except that Discover has spurred some growth and less losses due to its risk management approach -- shareholders and board of directors are well aware of it. Take a look at their most recent annual reports where such risk strategies were implemented/disclosed by senior management. A variety of people on here (armchair-wise) tend to forget the big picture and how some of these decisions are made by management based on a variety of factors that drive the industry. If you can back up the "20%" number I'm all eyes.

At any rate, rather than go off topic, let's let the OP elaborate a bit more on DPs or others who can provide the OP their actual 4506-C experience.

Re: Random Discover 4506-C Request

OmarGB9 — Sat, 17 Dec 2022 21:45:07 GMT

Not that random, I'm afraid. It's starting to become a bit more commonplace with them as of a couple of years ago.

Re: Random Discover 4506-C Request

GZG — Sat, 17 Dec 2022 22:11:22 GMT

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/Discover-Approval/td-p/6622206

@Santaclausthereal recently reported passing a 4506-C as a non-filer.

Re: Random Discover 4506-C Request

Jeffster1 — Sun, 18 Dec 2022 00:12:32 GMT

5 years one month after IIB Amex, I applied for an Amex Gold. They asked for a 4506-T. Aside from a frustrating experience trying to get my 4506-T recognized by Amex's offshore processing offices, it was a small price to pay to get back in the door with Amex. They have been really good to me ever since. Thank you, Amex, for not just slamming the door in my face.

Im not interested in Discover at all, but if I were interested, I'd gladly comply.

Re: Random Discover 4506-C Request

red259 — Sun, 18 Dec 2022 00:24:58 GMT

@Jnbmom wrote:
@Kforce wrote:
@Horseshoez wrote:
To kind of dovetail on what @Kforce said, if I any of my credit card issuers hit me with a 4506-C request, the only response they'd get from me is my card(s), cut in half, back in the mail. There are plenty of credit card issuers out there, Discover is nothing special and it is time for them to learn that.
^^^^ This
However I also believe you and I are not the norm.
I am also in this group no way in heck I am giving any credit card my consent for my taxes . If or when this may happen I will move on from them and not look back .

But there are others that don't mind obliging and that's fine too.

Yep, I tried to get a BoA business card and they started demanding tax returns etc and I was just like screw that I don't care about your card enough to jump through all those hoops. I could understand if someone had no credit history, but for people who are well established with multiple other options I don't see it being worth the hassle in most cases, especially after ten years of being a customer in I assume what is good standing. To each their own.

Re: Random Discover 4506-C Request

Bill77 — Sun, 18 Dec 2022 00:47:07 GMT

I would just close my account. Discover charges 20%+ interest on cards but wants to underwrite them like a mortgage.

Re: Random Discover 4506-C Request

Jeffster1 — Sun, 18 Dec 2022 01:02:32 GMT

I had a Discover for many years prior to my 13.

Once was enough for me. Never missed a payment, though, and paid back 100 percent. Still I would not apply again for other reasons.

Re: Random Discover 4506-C Request

FinStar — Sun, 18 Dec 2022 01:08:42 GMT

@Bill77 wrote:
I would just close my account. Discover charges 20%+ interest on cards but wants to underwrite them like a mortgage.

Discover has also been reported to be a flexible lender that allows yearly APR reductions on eligible accounts. Several threads from members who have done so over the years. Some APRs were reportedly in single digit territory (mine was) before the recent Fed interest rate hikes. So, not all accountholders are approved in 20%+ APRs from the get-go. Creditworthy profiles can get approved for their current advertised (15.74%).

Also, Discover isn't the only one that can request a 4506-C or tax docs/POI (although more frequent than the others). American Express, Citi, Capital One, Barclays, BoA, FNBO, etc., have been reported to do so as well. A mortgage is secured by the dwelling, a credit card is unsecured.

Re: Random Discover 4506-C Request

marmoset — Sun, 18 Dec 2022 01:08:56 GMT

I would be ok with it myself or for my wife. But only because our tax transcript is awesome. We would be like, "there! you happy? now gimme! gimme! gimme!"

Re: Random Discover 4506-C Request

crystal626 — Sun, 18 Dec 2022 01:14:50 GMT

I am expecting this request from them and I'll comply. Just opened a second one and 10% is quite valuable since Disco categories usually fit my spend 2-3 quarters of the year.

They also gave me the lowest 15.74% and my other card they'll give me 0% every so often when I ask which comes in handy.

Re: Random Discover 4506-C Request

Bill77 — Sun, 18 Dec 2022 05:11:58 GMT

@FinStar wrote:
@Bill77 wrote:
I would just close my account. Discover charges 20%+ interest on cards but wants to underwrite them like a mortgage.
Discover has also been reported to be a flexible lender that allows yearly APR reductions on eligible accounts. Several threads from members who have done so over the years. Some APRs were reportedly in single digit territory (mine was) before the recent Fed interest rate hikes. So, not all accountholders are approved in 20%+ APRs from the get-go. Creditworthy profiles can get approved for their current advertised (15.74%).

Also, Discover isn't the only one that can request a 4506-C or tax docs/POI (although more frequent than the others). American Express, Citi, Capital One, Barclays, BoA, FNBO, etc., have been reported to do so as well. A mortgage is secured by the dwelling, a credit card is unsecured.

I refuse to reward bad behavior. I'm not that desperate for a 15.74% interest rate either. Would never do this for any card company and it's a very rare occurrence that most other card companies would request this.

Re: Random Discover 4506-C Request

OmarGB9 — Sun, 18 Dec 2022 05:29:14 GMT

@Bill77 wrote:
@FinStar wrote:
@Bill77 wrote:
I would just close my account. Discover charges 20%+ interest on cards but wants to underwrite them like a mortgage.
Discover has also been reported to be a flexible lender that allows yearly APR reductions on eligible accounts. Several threads from members who have done so over the years. Some APRs were reportedly in single digit territory (mine was) before the recent Fed interest rate hikes. So, not all accountholders are approved in 20%+ APRs from the get-go. Creditworthy profiles can get approved for their current advertised (15.74%).

Also, Discover isn't the only one that can request a 4506-C or tax docs/POI (although more frequent than the others). American Express, Citi, Capital One, Barclays, BoA, FNBO, etc., have been reported to do so as well. A mortgage is secured by the dwelling, a credit card is unsecured.

I refuse to reward bad behavior. I'm not that desperate for a 15.74% interest rate either. Would never do this for any card company and it's a very rare occurrence that most other card companies would request this.

"Bad behavior?" It's literally just risk mitigation. Also, calling 15.74% "desperate" is a bit much. I'm sure the many people paying 36+% interest would love the chance at paying 15.74%.

Also, if one PIF (as I presume you most likely do), what does the interest rate matter?