Discover 4506T

[Remedios]

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@Anonymous wrote:

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@Remedios wrote:

I don't believe that for one second.

These requests have to be looked at by a human being.

Discover has 44 million issued cards, and 15,500 employees. 

Out of those employees, maybe 5% are the ones capable to perform this task. 

Unless they are willing to hire outside companies to perform this task and lose a lot of money by paying them, logistically it's not happening. 

I'm certain requests will continue but not for everyone.

Some may be triggered, some may be random, but regardless of who gets them, the sample should give them a good idea on how often they should expect income to be misstated, and act accordingly. 

The logistics behind IV on 44 million (even when adjusted for those with two cards) is mind numbing, and logistically impossible. 

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I don't see why this would have to be reviewed by a human. Equifax automates the 4506-T process, its very easy to look at income on 4506-T and income reported to Disco and act accordingly.

When bank statements get involved, yeah, that has to be reviewed by a human but that would also explain why Disco was totally unwilling to go that route until IRS delays from the pandemic forced their hands.

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Why?

Because automation only works on getting transcripts and extracting data. 

It can determine that income is within certain percentage of reported income, but EQ doesn't decide what happens to it afterwards

When Amex started using EQ for IV,  CLI requests that prompted request were denied w/o discrepancy in income.

Some of denials were for high DTI, balances etc. EQ did the leg work, human made a decision. 

Why not bank statements..ease of forgery, consumers submitting statements from multiple banks..

My own direct deposit is split between three FIs. It makes reaching anything resembling a conclusion much harder. 

CSRs say whatever they say, sometimes even to make us feel better 

"This will be requested from everyone eventually" sounds so much better than "Your account was flagged because...*

These same CSRs don't know their cards can be combined and that's been going on for many years. 

I can just imagine the wealth of information they possess on income verification. 

With that said, my reported income is one half what my tax returns and bank statements show. I don't have a horse in this race and no reason for wishful thinking in either direction. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

They have been accepting bank statements since the pandemic has slowed down the 4506-T processing time. Offer those since that will show the income you currently have, not the income you had previously. 

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Just in tbe past couple weeks Disco refused to accept bank statments from my SO and said they would only accept the signed 4506T. When he said he did not get it ( had not checked his email) and explained the time to sign it had passed (i believe there is a time window to sign it) and that they were shutting his card down. He appd and got the card june 21st, i believe the date for the 4506T was a week later (but expired like 2 days it was sent to him), but somehow they said it had to be signed by Aug 5th? The CSR was rude and said it was going to be considered a "bad mark" on his credit since they closed the account.

Oh well!

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Hmm. Seems it's hit or miss. A number of people have reported succeeding in being able to send bank statements. Worth asking either way though. 

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Well the mystery continues.

As of today's ACR pull, the Disco account is still being reported as "open".

Looks like the last update they did was on 7/26, so I guess we will find out between tomorrow and next week's ACR pull if they are going to report it as "closed".

Again, we never received the card, so have never been able to do anything with it or even create an online account to see what is up.

Oddly enough, on today's ACR pull, I did notice that Disco did a TU SP on 8/8 and EX SP on 8/10. Strange if they shut the account down on 8/5 to still be doing SPs, no? What would be the purpose of that?

Until we get the security deposit back I guess we are in limbo! I am thinking if we don't see it in the next couple weeks we will be giving them another call.

[Rmullens2208]

So I got information back from discover sent my last three months of bank statements W2 and they got the IRS transcripts the hold was removed and thank me for helping to keep my account secure? I'm now online with app first three purchase went thru then denied! Called and they said they still had a hold on my account but are closed! Dam! But I can still see everything online and for the hell of it I paid the charges I've made! Is this common place to freeze unfreeze and freeze again ?

[Anonymous]

I experienced this just yesterday. Discover has immediately gone from a company that I advocated for, valued and enjoyed being a customer of to a company that I despise and will never do business with again. I was a customer for about three years and have never paid late and have never paid even close to just the minimum payment. My discover card was my primary card and the only reason is wasn’t my only card was because the limit wasn’t adequate. My card was declined at a higher end retailer, I checked the app, it was down, I called customer service , the number was busy. So I used another card. I called when I got home as was told I needed to sign a 4506T in order to keep my account open. I argued, asked why they would treat and good customer like this, question my integrity and honesty invade my privacy for a credit card that’s never been paid late and that they had just 30 days prior increased the credit line of. I received no reasonable answer. So I called the executive integrity line with discover and received the same responses in a more polite and polished manner. I don’t need a discover card, I was a fan and a good customer, but this is ridiculous and unbelievably invasive and inappropriate for a credit card Company to request tax transcripts on a 10k revolving credit line that’s been paid like clockwork and regularly paid off and charged back up (very profitable for them). I’ve paid off of my card and now I’m determined to tell my story as many times as it takes to get an apology and a real explanation

[ccquest]

Is there any indication whether the 4506-T request is coming for certain CL threshold or is it instead a certain income level? Just curious honestly, because it seems to be hitting both new and old accounts either way.

[CreditCuriosity]

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@Anonymous wrote:

I experienced this just yesterday. Discover has immediately gone from a company that I advocated for, valued and enjoyed being a customer of to a company that I despise and will never do business with again. I was a customer for about three years and have never paid late and have never paid even close to just the minimum payment. My discover card was my primary card and the only reason is wasn’t my only card was because the limit wasn’t adequate. My card was declined at a higher end retailer, I checked the app, it was down, I called customer service , the number was busy. So I used another card. I called when I got home as was told I needed to sign a 4506T in order to keep my account open. I argued, asked why they would treat and good customer like this, question my integrity and honesty invade my privacy for a credit card that’s never been paid late and that they had just 30 days prior increased the credit line of. I received no reasonable answer. So I called the executive integrity line with discover and received the same responses in a more polite and polished manner. I don’t need a discover card, I was a fan and a good customer, but this is ridiculous and unbelievably invasive and inappropriate for a credit card Company to request tax transcripts on a 10k revolving credit line that’s been paid like clockwork and regularly paid off and charged back up (very profitable for them). I’ve paid off of my card and now I’m determined to tell my story as many times as it takes to get an apology and a real explanation

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explanation is people obviously have set off red flags with discover whether income difference, debt load going up, unusual charge behavior, etc. or they would not be doing this.  As echoed above bank statements can easily be forged and 4506-t come straight from the IRS thus cannot be.  Afterall it is unsecured credit and you said 10k that is a decent amount of money to possibly lose times many of customers.  They have been taking alot of losses being Cap1, discover, etc.   So they are just protecting their shareholders.  Like it or not it is what it is either comply or not just like other lenders like Amex due during their FR's.  It isn't random either as echoed by others.  There is a reason to whom they pick whether big income differences in various years, 3rd party data sources like the numberworks or charging differences, etc.  Hate saying this as becoming all to common it is just business and you have other options and this is why everyone who is able should diversify their lenders being have several incase one does this and you feel uncomfortable supplying what they ask for.

[Anonymous]

Something similar happened to both my husband and I. We provided what they asked, which supported our income. They opened the cards up. Then within a week, they were both closed. They held the security deposit for my account for a little over a month, my husband still hasn't gotten his back. 

[quikj9]

@CreditCuriosity I think that's a valid explanation, but how does that account for people who are being hit with 4506-T forms after being approved for secured cards?

[CreditCuriosity]

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@quikj9 wrote:

@CreditCuriosity I think that's a valid explanation, but how does that account for people who are being hit with 4506-T forms after being approved for secured cards?

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Hionestly that one has me scratching my head other then they want to possibly make sure if they give you the chance to build credit with them and unsecure it in time that all is square?  Only reason i can possibly think about, but i agree it is strange for a secured card.

[Rmullens2208]

My card has been opened back up yet again I think I'm not comfortable traveling over seas with just my discover that would suck to be out the country and Discover wagging!