topic Re: Discover account closed in General Credit Topics

Discover account closed

Ahava18 — Thu, 18 Oct 2018 00:39:08 GMT

A couple weeks ago my Discover card wouldn't let me make any transactions, so I called CS and they told me that my account was under review because of another Discover member's account that is under review and I have been associated with that user. When I asked how I have been associated, they said it may be an AU. They asked me regarding all my AU's and said that I'll get further information late on.

A couple days later my account was closed altogether. They just sent me a message through the secure message center saying:
Dear ****,
As part of normal account review procedures, we have reviewed your account. Based on this review, we are closing your credit line to further transactions. The following reason(s) will help explain our decision:
- WE ARE NO LONGER ABLE TO MEET YOUR SERVICING NEEDS
Our credit decision was based in whole on the information found on your account.

Has anyone rlse had this happen to them, what did I do wrong? I cannot think of anything that might have caused this. Would it be normal for a credit issuer to close an account because of your AU's account has an issue?
Does anyone have any suggestions or best contact details for corporate.
Lastly, does it affect my credit/score in any way?

Re: Discover account closed

AndySoCal — Thu, 18 Oct 2018 12:13:33 GMT

Were you an authorized user on someone account or did you have authorized user on your account?

Re: Discover account closed

mitchblue — Thu, 18 Oct 2018 12:38:05 GMT

And yes you can be closed because of AU activities.

Re: Discover account closed

AverageJoesCredit — Thu, 18 Oct 2018 18:10:25 GMT

The key issue here is the AU under suspicion. Who is an AU under you ? Or are you / were under AU ? Discover normally doesnt just close an account for no reason.

Re: Discover account closed

Cred4All — Thu, 18 Oct 2018 18:18:56 GMT

By the way it's worded Op it sounds like the person you had as an AU was under question. Obviously if thats the case, anything and anyone under your account means you bear that responsibility. Curious to hear more.. if you care to share the activity by the AU?

Re: Discover account closed

zerofire — Thu, 18 Oct 2018 22:00:53 GMT

Sounds like your AU did something that Discover did not like. They then cut you and the AU off to protect themselves. Remember that anything still owed on the account is still due.

Re: Discover account closed

Anonymous — Fri, 19 Oct 2018 00:00:53 GMT

Sorry about this. How long have you had the card? Did you have multiple AUs on your account?

@Ahava18 wrote:
A couple weeks ago my Discover card wouldn't let me make any transactions, so I called CS and they told me that my account was under review because of another Discover member's account that is under review and I have been associated with that user. When I asked how I have been associated, they said it may be an AU. They asked me regarding all my AU's and said that I'll get further information late on.
A couple days later my account was closed altogether. They just sent me a message through the secure message center saying:
Dear ****,
As part of normal account review procedures, we have reviewed your account. Based on this review, we are closing your credit line to further transactions. The following reason(s) will help explain our decision:
- WE ARE NO LONGER ABLE TO MEET YOUR SERVICING NEEDS
Our credit decision was based in whole on the information found on your account.

Has anyone rlse had this happen to them, what did I do wrong? I cannot think of anything that might have caused this. Would it be normal for a credit issuer to close an account because of your AU's account has an issue?
Does anyone have any suggestions or best contact details for corporate.
Lastly, does it affect my credit/score in any way?

Re: Discover account closed

Cred4All — Fri, 19 Oct 2018 00:16:20 GMT

Looking at a previous post by the Op in July... it looks like the Op's sister was added as an AU to the Discover card, approx 20 years old. Still hope to hear more data points on this to get a better grasp.

Re: Discover account closed

Anonymous — Fri, 19 Oct 2018 02:57:10 GMT

@Ahava18 wrote:
A couple weeks ago my Discover card wouldn't let me make any transactions, so I called CS and they told me that my account was under review because of another Discover member's account that is under review and I have been associated with that user. When I asked how I have been associated, they said it may be an AU. They asked me regarding all my AU's and said that I'll get further information late on.
A couple days later my account was closed altogether. They just sent me a message through the secure message center saying:
Dear ****,
As part of normal account review procedures, we have reviewed your account. Based on this review, we are closing your credit line to further transactions. The following reason(s) will help explain our decision:
- WE ARE NO LONGER ABLE TO MEET YOUR SERVICING NEEDS
Our credit decision was based in whole on the information found on your account.

Has anyone rlse had this happen to them, what did I do wrong? I cannot think of anything that might have caused this. Would it be normal for a credit issuer to close an account because of your AU's account has an issue?
Does anyone have any suggestions or best contact details for corporate.
Lastly, does it affect my credit/score in any way?

Just guessimating from your post that you are the primary cardholder and not the AU. If DISCO closed your account, I'd reach to your AU and find out exactly what may have led to this outcome. Hoping you get to the bottom of this...

Re: Discover account closed

Ahava18 — Wed, 24 Oct 2018 00:33:28 GMT

Sorry for not getting back sooner, I didn't have a chance in the past couple days.
To all those asking, I want to clarify that I was referring to an AU on my account. I believe I'm not an AU on any Discover card.

@Cred4All wrote:
Obviously if thats the case, anything and anyone under your account means you bear that responsibility. Curious to hear more.. if you care to share the activity by the AU?

There was nothing going on on my account. The AU on my account was for whatever reason under review on a different account.

@zerofire wrote:
Sounds like your AU did something that Discover did not like. They then cut you and the AU off to protect themselves. Remember that anything still owed on the account is still due.

That doesn't make sense nor does it seem fair. As Cred4All said, ultimately I'm the one responsible for any activity on m account so even if the AU screwed up on a different account, that shouldn't impact my relationship considering I've been a longtime customer and had no issues on my account. I fail to see what the risk was that they needed to 'protect themselves' against.

@Anonymous wrote:
Sorry about this. How long have you had the card? Did you have multiple AUs on your account?

I actually ~~have~~ had two cards with them, going back to 2013 and 2014. Yes I did have 3-4 AU's

@Cred4All wrote:
Looking at a previous post by the Op in July... it looks like the Op's sister was added as an AU to the Discover card, approx 20 years old. Still hope to hear more data points on this to get a better grasp.

She does not have her own Discover card yet.

@Anonymous wrote:
Just guessimating from your post that you are the primary cardholder and not the AU. If DISCO closed your account, I'd reach to your AU and find out exactly what may have led to this outcome. Hoping you get to the bottom of this...

I did reach out to them, all the rep would tell me was basically repeating what was on the letter.
I asked what options I now have and they told me to reach out to corporate. I'm considering doing just that, however, I'd like some advise on which tone to use. Should I reach out begging and pleading to have my account reopened (I have a Discover Checking as well that I can maybe use to have them reconsider my case), or should I come in tough talking legal jargon and consumer rights, demanding to have my account reopened.

Re: Discover account closed

Cred4All — Wed, 24 Oct 2018 01:35:34 GMT

@Ahava18 any chance you can share what exactly the reasons were in the letter? I believe we're all in the dark as to any reason that was provided unless you listed it and I missed it.

Re: Discover account closed

Ahava18 — Wed, 24 Oct 2018 05:30:58 GMT

@Cred4All I'm as much in the dark as you. In my OP I shared the letter Discover sent stating the reason for account closure.

Here is the highlight:

The following reason(s) will help explain our decision:
- WE ARE NO LONGER ABLE TO MEET YOUR SERVICING NEEDS

Unfortunately that's all I got.

Re: Discover account closed

CreditInspired — Wed, 24 Oct 2018 12:50:57 GMT

Hi OP

After re-reading everything, I suggest before deciding on which route to take—begging and pleading or guns ablazing—find out from the horse’s mouth—your AU(s)—what the heck has he/she done to cause your CC account to be closed.

IMHO, that’s where I would start first.

Then, understand where other members’ responses to your questions are coming from. That yes, the actions of an AU can and will reflect on you. It doesn’t matter that you’re ultimately responsible for the AU charges, which of course you are, Discover wants to extricate itself from any foreseeable risks.

You/We don’t know what the AU might have been doing that spooked Discover and that’s why it’s important to find out from him/her.

Also, extremely important from my POV. If same AU is on any other CCs of yours, IMHO, I would remove them ASAP so this same scenario won’t happen with another lender.

Just my 2 cents and GL2U on whatever you decide to do.

Re: Discover account closed

UncleB — Wed, 24 Oct 2018 21:12:58 GMT

Hi @Ahava18, here are some questions that might help you figure out what's going on (you don't have to answer here if you don't want to, but these are some things Discover might be concerned with):

Do you have multiple AUs? Are you related to them? Do you have the same last name?
Has your AU been using the card in an odd way, such as cycling your credit line (maxing out, then quickly paying off over and over)?
Has your AU been using the card for large purchases that could easily by converted back to cash?
Has your AU been using the card extensively for Paypal, Venmo, or similar?
Has your AU been using the card for cash advances, even if quickly paid back?
Is your AU a US citizen?

There are of course many things they might look at (and any of these things alone might be fine), but these are some of the 'biggies' that can sometimes trip people up.

As for your question about going in 'tough' I would personally avoid that myself. Lenders are are not required to offer anybody an account, and being difficult at this point might further discourage them from wanting your business (i.e. you have rights as a consumer, but there is no "right" to an account). Just my 2¢.

Re: Discover account closed

Queen_Etherea — Wed, 24 Oct 2018 22:45:50 GMT

@UncleB wrote:
Hi @Ahava18, here are some questions that might help you figure out what's going on (you don't have to answer here if you don't want to, but these are some things Discover might be concerned with):

Do you have multiple AUs? Are you related to them? Do you have the same last name?
Has your AU been using the card in an odd way, such as cycling your credit line (maxing out, then quickly paying off over and over)?
Has your AU been using the card for large purchases that could easily by converted back to cash?
Has your AU been using the card extensively for Paypal, Venmo, or similar?
Has your AU been using the card for cash advances, even if quickly paid back?
Is your AU a US citizen?

There are of course many things they might look at (and any of these things alone might be fine), but these are some of the 'biggies' that can sometimes trip people up.

As for your question about going in 'tough' I would personally avoid that myself. Lenders are are not required to offer anybody an account, and being difficult at this point might further discourage them from wanting your business (i.e. you have rights as a consumer, but there is no "right" to an account). Just my 2¢.

Wait... please explain to me why these things look bad. Isn't the whole purpose of getting cash back cards to use them on large/many purchases so we can get as much cash back as possible? Why would using it for PayPal be a bad thing? I'm honestly confused here!

Re: Discover account closed

UncleB — Wed, 24 Oct 2018 23:19:46 GMT

@Queen_Etherea wrote:
Wait... please explain to me why these things look bad. Isn't the whole purpose of getting cash back cards to use them on large/many purchases so we can get as much cash back as possible? Why would using it for PayPal be a bad thing? I'm honestly confused here!

Yes, the purpose of cards is to use them, and under normal circumstances most banks would love for your to use their cards heavily. In this case, though, something more is going on and we're trying to help the OP figure that out.

Using a card for Paypal isn't a bad thing by itself, but if you continuously use Paypal (or similar) to send large amounts of cash to a family member (or your own business) it's well-known that this can cause problems.

Like I mentioned above, these things by themselves are often not a problem, but combined with other issues can be problematic. That said, without knowing more about the OP's specific situation all we can do is speculate at this point.

Re: Discover account closed

HeavenOhio — Thu, 25 Oct 2018 03:07:56 GMT

@Ahava18 wrote:
Should I reach out begging and pleading to have my account reopened (I have a Discover Checking as well that I can maybe use to have them reconsider my case), or should I come in tough talking legal jargon and consumer rights, demanding to have my account reopened.

Split the difference. Use businesslike verbiage politely requesting that your account be reopened.

@Queen_Etherea, using PayPal to send cash is a problem because the bank thinks you're trying to get around a cash advance (along with its fee and immediate interest). If you want to send cash to someone via PayPal, do it from your checking account rather than from a card. Using PayPal and a card is absolutely fine if you're buying a product or service from a merchant.