Random Discover 4506-C Request

[KatrinaE]

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?  

[Kforce]

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.

[Horseshoez]

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.

[FinStar]

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@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?  

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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?

[Kforce]

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@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.

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^^^^ This

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

[FinStar]

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@Kforce wrote:

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@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.

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^^^^ This

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

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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 🤷‍♂️

[Jnbmom]

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@Kforce wrote:

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@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.

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^^^^ This

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

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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.

[Horseshoez]

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@FinStar wrote:

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@Kforce wrote:

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@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.

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^^^^ 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 🤷‍♂️

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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:

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

[FinStar]

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@Horseshoez wrote:

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@FinStar wrote:

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@Kforce wrote:

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@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 🤷‍♂️

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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:

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

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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. 

[OmarGB9]

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