Discover 4506-C Request 3 years in

[Anonymous]

I opened a Discover IT card in 2018 and was originally given a CL of 10k. Twice since I've receive a CLI without requesting once for 13k and in September again to 16k. A few days ago, I received a request for 4506-C. I will paste the text from the message at the bottom of this message. I usually pay the card off in full. A few months ago, I charged a vacation on the card for 7k which was paid off. I currently have about $1600 or 10% utilization. I didn't think much of the request at first, so I signed the 4506-C. 

From what I've been reading, this type of request usually results in an account closure one way or the other. My research hasn't turned up much in terms of 4506-C requests that were cleared. It seems like this is just a first step and a way to avoid regulatory scrutiny over discrimination claims when closing accounts. My fico is about 810. My total revolving utilization is about 6%. My income is about 10k thousand higher than when I first applied for the card on my 2020 tax return but significantly higher (140k vs 85k) in 2021 (not yet reported to IRS). For the record, I am a medical doctor. Can anyone confirm that their account remained opened after submitting the 4506-C? I'm thinking it may be better to just call in, pay off the balance and close the account to avoid a "closed by credit grantor" on my report as opposed to a "closed by consumer" on my credit reports. Any help is really appreciated.

Text from email message from Discover:

Discover Financial Services requires your consent to receive tax information from the Internal Revenue Service (IRS) to verify information on your account. Within 5 days, please click the 'Review and sign' link above to provide consent via IRS Form 4506-C. Until this verification is complete, a temporary hold has been placed on your Discover card account. Your account will be closed if you are unable to provide the requested consent by the indicated response date.

This verification process will consider your tax information from the last two years. If you have not filed taxes during this timeframe, please provide consent as described and then contact us immediately to discuss additional required steps.

Please follow the steps below:

1. Upon clicking the link, you will be prompted to enter a Password. The Password is the 5-digit zip code on file with your Discover card account, followed by the last 4 digits of your Social Security Number (SSN). For example, if the zip code on file is 12345 and the last 4 of your SSN is 0000, you need to enter the password as 123450000.
2. Complete Line 4 ONLY if the address listed on your last filed tax return is different than Line 3 (current address on file with Discover).
3. To complete the form, you must provide your e-signature.

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.

For questions or if any information on your 4506-C is incorrect, please contact Discover Customer Protection Services directly at 1-800-203-4969, or call the phone number on the back of your card.

We appreciate your prompt attention and cooperation.

Sincerely,

Discover Financial Services

[simplynoir]

I am on mobile right now so it can be a pain to copy/paste links but from my searching there have been datapoints on people keeping their cards when Discover requests a 4506-C. Even one post where the person hadn't even used the card in awhile was asked to submit the form and the hold was later rescinded

I'm presuming when the airfare charge came through and was immediately paid off their computers flagged your account and now they're just attempting to verify you have the income to support that spend. From what you've shared you have nothing to worry about really. And even in the event that they close your account the notation "closed by credit grantor" has no impact on your scores. It is no different than if you closed the account yourself. So I would just wait and have the situation play out

[SoCalGardener]

Welcome to the forum, @Anonymous!

I'm sorry we're meeting under these circumstances, though.

It seems very odd to me that Discover would require this income verification three years in, but with credit cards....who knows? I've never been asked to provide this kind of proof, and I'm crossing my fingers that it won't turn out to be bad news for you. As long as you can provide proof of your new, so-far-unreported income, i.e., with paycheck stubs or direct deposit records, I don't think there should be a problem. It's not like your score took a nosedive or anything!

I know how hard it is to be patient under circumstances like these, but hang in there and wait to see how this plays out. It may be nothing at all.

[Trini88]

I read someone's post about a month ago saying they received that request from Discover and made significantly less than what they put when they applied for the card. Their account remained open.

[Anonymous]

Thanks @SoCalGardener and @simplynoir 

 . I am going to overnight them pay stubs, offer letters, and bank statements with my new income. My past two years tax returns do show a higher income than when I first applied though. I would just want them to know that my income is significantly higher than that (it was 85k in 2020 but 2021 about 133 plus an 18k bonus - all in writing). I'm hoping that works. I have high limits with amex, citi, us bank, chase, macys amex  (10-15k each) and a target credit card too. I've never had to do anything like this. I've never had any credit issues - not even a 30 day late.

[practical1]

I have no idea if this is actually relevant or not... but there is another thread where people with secured Discover cards are also, seemingly out of the blue, being asked to provide 4506-C forms as well, which to a disinterested, outside observer, seems mighty peculiar.

If this is a pattern (and not enough data here to determine for certain, but your post taken with others I've read seems to add to the mystery), perhaps  might there be some kind of Discover-wide, internal risk reassesment going on, triggering these requests, maybe even on a random or spot-basis?  Certainly, COVID has provided condiditons which could trigger this kind of re-evaluation by any large financial firm.

I'm just speculating (don't even have a Discover product)....  Does anyone else have any insight or thoughts which might shed light on @Anonymous 's situation? 

[NoMoreE46]

Subscribed.

OP please keep us posted.

[Anonymous]

@NoMoreE46  definitely will

[firefox100]

What is up with Discover card, I asume when you open the creditcard with Discover you put down occupation and employer on the orignal application. There computer system should have pulled it up, I can't see Discover closing your account you may not pay intrest your kind of card holder they would want. Discover must be getting burnt lot for them doing this tto card holders who have been with them for couple of years and never miss payments. Just for info I have a Discover card with cl of 29K since 2016 only put about 50 dollars per month, what would if I suddenly charge five to teen grand on account what would they do. When the card was first open I put about 32K of spend in the first year never carrcarried a balance paid it off each month did dental work which cost about 27K. Good luck.

[practical1]

@firefox100 

Apropos of your comment RE: Might not be the kind of customer Discover wants.

True story: Years ago, one of my Board members was a former CEO of one of the three largest card networks.  Over lunch, one day, when we we shooting the breeze, he told me that in his industry, there was a special term for card holders who paid their bills, in-full, each and ever month..... it was deadbeat.   Lol

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