Here's why minimum payments going to $25

[MarineVietVet]

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@Cory wrote:

Hello People,

For those with Discover Cards, did you get the new card member terms/conditions and privacy policy letter or email? From what I understand, begining February 2011 Discover will charge interest from the date of transaction, instead of the old 23 or 25 day grace period. I did not understand the full letter, but did key in on the fact that you can no longer try to pay in full to avoid interest charges.

Please let me know.

Cory

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I either haven't received anything like that yet or I ignored it (I admit that is a bad trait of mine) but I'm about to fire off a message to Discover about this and see what the response is.

ETA: Can you copy and paste what was in the statement? I also asked Discover to send me a copy of the card member agreement just in case I have ignored the first one.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Cory]

Sure,

I"ll do that in a box below by itself. It's very long to read. I might not be conveying the message correctly about the interest charges, but that is what it sounds like at least is going to happen to me.

They might be targeting out card holders with these upcoming changes.

Take a look below for the post.

Cory

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@MarineVietVet wrote:

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@Cory wrote:

Hello People,

For those with Discover Cards, did you get the new card member terms/conditions and privacy policy letter or email? From what I understand, begining February 2011 Discover will charge interest from the date of transaction, instead of the old 23 or 25 day grace period. I did not understand the full letter, but did key in on the fact that you can no longer try to pay in full to avoid interest charges.

Please let me know.

Cory

---

I either haven't received anything like that yet or I ignored it (I admit that is a bad trait of mine) but I'm about to fire off a message to Discover about this and see what the response is.

ETA: Can you copy and paste what was in the statement? I also asked Discover to send me a copy of the card member agreement just in case I have ignored the first one.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

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[Cory]

IMPORTANT CHANGES TO YOUR ACCOUNT TERMS The following is a summary of changes that are being made to your Account terms. These changes will take effect on February 1, 2011. For more detailed information, please refer to the Explanation of Changes to your Cardmember Agreement below. You have the right to reject these changes, unless you become more than 60 days late on your Account. However, if you do reject these changes you will not be able to use your Account for new transactions. You can reject the changes by calling us at 1-800-347-3084 by January 31, 2011. Revised Terms as of February 1, 2011 Paying Interest Your due date is at least 25 days after the close of each billing period, except that your due date is at least 23 days after the close of each billing period that begins in February. We will not charge you any interest on new purchases, or any portion of a new purchase, paid by the due date on your current billing statement if you paid your entire balance on your previous billing statement in full by the due date on that statement. Late Fee Up to $35

EXPLANATION OF CHANGES TO YOUR CARDMEMBER AGREEMENT

We are changing the Discover® Cardmember Agreement.  Unless otherwise indicated below, these changes will be effective as of February 1, 2011. THE FOLLOWING ARE CHANGES YOU CAN CHOOSE TO REJECT AS EXPLAINED BELOW. THESE CHANGES ARE LISTED IN THE ORDER IN WHICH THE APPLICABLE SECTION APPEARS IN YOUR CARDMEMBER AGREEMENT. IF YOU REJECT THESE CHANGES YOUR ACCOUNT WILL BE CLOSED AND YOU WILL NOT BE ABLE TO USE IT FOR NEW TRANSACTIONS. Paying Interest.  We are changing the grace period for purchases. It will be at least 25 days except that it will be at least 23 days after the close of each billing period that begins in February. We are replacing the “Paying Interest” section of your Cardmember Agreement with the following: “Paying Interest.  We begin to impose Interest Charges on all transactions and fees from the Transaction Date shown on your billing statement for the transaction or fee. However, if a transaction or fee is posted to your Account after the close of the billing period in which it occurs, we begin to impose Interest Charges on that transaction or fee from the first day of the billing period in which it is posted to your Account. We begin to impose Interest Charges on Interest Charges from the date they are added to your Account. We continue to impose Interest Charges on all transactions, fees and Interest Charges until you pay the total amount you owe us. Your due date will be at least 25 days after the close of each billing period except that it will be at least 23 days after the close of each billing period that begins in February. If you paid the New Balance on your previous billing statement by the Payment Due Date shown on that billing statement, we will not impose Interest Charges on new purchases, that is purchases first appearing on the current billing statement, or any portion of a new purchase, paid by the Payment Due Date on your current billing statement. We call this the "grace period." As more fully described in the section titled "How We Apply Payments," we apply payments in a manner most favorable or convenient for us and, to the extent your payments exceed the Minimum Payment Due shown on your current billing statement, we will apply such excess amounts generally in order of the APR applicable to the balance of each transaction category (as referenced in the INTEREST CHARGES section), from highest to lowest, beginning with the balance subject to the highest APR as of the date we credit your payment. This means that if you do not pay your balance in full each month, then, depending on the balance to which we allocate your payment, you may not be able to get a grace period on new purchases.”

[Cory]

There were other changes in reference to the "Bonus Rewards Program" just stating that if you default on your account/and or minimum payment, you forfeit the bonus rewards you accumalate.

The message had to many characters to post here, so I did what I could.

Cory

[Cory]

This is all the reason more why I'll convert to Credit Union cards at least now before they follow suit with what the larger banks are doing. The little percentage of rewards they offer on your Discover Card, will just be enough to pay those interest charges accrued from transaction. Which then makes you think, the card is not worth it. Of course, if your income is large and you are a big spendor, this will not even effect you.

Also, they state if your account is inactive for a consecutive 18 months, that your forfeit your rewards.

But with my income, I'll just have to do what is best for me.

Sorry for the long email guys.

Cory

[MarineVietVet]

I don't see any significant changes.

We will not charge you any interest on new purchases, or any portion of a new purchase, paid by the due date on your current billing statement if you paid your entire balance on your previous billing statement in full by the due date on that statement.

This is the same as it's always been. 

We are changing the grace period for purchases. It will be at least 25 days except that it will be at least 23 days after the close of each billing period that begins in February

The grace period remains so overall I see nothing to be concerned about. 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Cory]

Oh I'm sorry, I must of woke up on the wrong side of the bed this morning, and then fell and hit my little head.

After going back and reading it, I still some clarification of to what they mean by new purchases. Currently, how does it work?

Cory

[Anonymous]

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@Cory wrote:

Oh I'm sorry, I must of woke up on the wrong side of the bed this morning, and then fell and hit my little head.

After going back and reading it, I still some clarification of to what they mean by new purchases. Currently, how does it work?

Cory

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Very few people totally understand this.   These changes are typical.   If you PIF every month, there is no interest.   If you don't you are paying interest starfting from when the new purchase is posted.   A new purchase is when you charge a good or service.    Cash Advances and Balance Transfers are not new purchases.

[Anonymous]

Cory,

I'm an official rep of Discover. Thanks for asking about recent changes to the cardmember agreement. In reply to your statement "you can no longer try to pay in full to avoid interest charges" I'd like to clarify—This change only means that for your billing period that begins in February, you will now have 23 days, instead of 25 days, from the statement/closing date to pay your balance in full and avoid interest charges on purchases (provided you pay in full each month). As always, as long as you pay off your balance in full each month by the due date, you will not receive interest on your purchases. If you have any more questions about your account, please contact us: http://bit.ly/adlKHu

Thanks for being a Discover Cardmember.

– Suzanne

Social Media & Brand Manager, Discover

social@discover.com

Discover.com/community

[fused]

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