Random Discover 4506-C Request

[KatrinaE]

I'm a business owner - so I use my cards constantly for points and cash back but usually rarely cary a ballance.   Have 2 cards.  Have had them for 10+ years.  20k on one and 10k on the other.  Most recent CLI about 6-7 months ago.  Cannot remember when I was asked to update my income - few to several months ago.  Literally out of the blue as far as Discover goes.  

Updated  - So not to offend those on one side or the other.  

My theory is that certain processes and procedures are being put in place to have people, small and medium businesses self report income information to the government through healthcare benfits, loan or loan forgiveness benefit, mortgage privelages and now credit card privelages for the benefit of the taxing authority.  Theorize as you will.

[Remedios]

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@KatrinaE wrote:

I'm a business owner - so I use my cards constantly for points and cash back but usually rarely cary a ballance.   Have 2 cards.  Have had them for 10+ years.  20k on one and 10k on the other.  Most recent CLI about 6-7 months ago.  Cannot remember when I was asked to update my income - few to several months ago.  Literally out of the blue as far as Discover goes.  

My theory is that the creditors have alerts on your credit like we do and somehow I flipped a flag.  Business doubled in size last year and nearly trippled since 2019.  Lots of borrowing to do that.  In addition, just like Obama Care 1.0 and PPP I believe this is in cahoots to find tax dogers.  Obama care was the self employed and small businesses to get their 1099 employees and cash under table employees to report them.  PPP was for businesses to tattle on themselves and their employees.  This is 3rd step in the taxation and audits.

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No need for tinfoil hats, you're self-employed, they want to make sure there is steady income. 

Also, you're nearing politics, that's off limits, so let's stay with credit cards and related  issues. 

Lastly,  it's called Affordable Healthcare Act. 

[markhs777]

Leave the gun take take the cannolis. It's only business. All businesses want to maximize profit and I'm sure Discover anticipates some cancellations vs loses due to fake reported incomes. A good business will adjust to the conditions and no doubt Discover has competent individuals making decisions. May not always be correct however all a company can due is put the odds in their favor.

[marmaladepie]

I'm new to discover. Applied last week for the IT card. It was in the evenig, went pending then when I tried to check the status , the site was under maintenance. 
the next morning I checked and was approved for $8500. Got all the welcome emails. 
Today, I got an email asking for tax info and all that stuff while the account is on hold. Haven't received the physical card even. 

[CreditCuriosity]

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@marmaladepie wrote:

I'm new to discover. Applied last week for the IT card. It was in the evenig, went pending then when I tried to check the status , the site was under maintenance. 
the next morning I checked and was approved for $8500. Got all the welcome emails. 
Today, I got an email asking for tax info and all that stuff while the account is on hold. Haven't received the physical card even. 

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Submit it or call and ask if can provide bank statements?

[xenon3030]

It might be the time to move on from Discover, if it would be too much hassle to provide such documents. Discover was not actively used in my wallet in the past year, because of overlapping its 5% categories routinely to my other cards like CFF.

PS: If somebody decides to close the account and in future, tries to open the same CC again, would it likely to receive 4506C again?

[FinStar]

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@xenon3030 wrote:

PS: If somebody decides to close the account and in future, tries to open the same CC again, would it likely to receive 4506C again?

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Potentially. Lenders aren't really limited to the frequency of such requests. Then again, it depends on the particular scenario, the profile and what sticks out for an algorithm to perform additional due diligence.

[7774x]

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@marmaladepie wrote:

I'm new to discover. Applied last week for the IT card. It was in the evenig, went pending then when I tried to check the status , the site was under maintenance. 
the next morning I checked and was approved for $8500. Got all the welcome emails. 
Today, I got an email asking for tax info and all that stuff while the account is on hold. Haven't received the physical card even. 

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Lol.. Discover didn't want the info before approving the card .. Why is that ? 

[7774x]

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@Anonymous wrote:

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@crystal626 wrote:

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@Horseshoez wrote:

@CreditCuriosity, I'm good with due dilegence, I'm not good with sharing tax information.

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Exactly. I would happily provide bank statements or my Social Security award letter (which specifically says it is to be used for the purposes of getting credit) but there aren't many banks I'm willing to give my taxes to, same for these services like Plaid and Yodlee that watch my account balances and transactions. 

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I think for many the decision not to give tax info is more a matter of principle than anything else.   Most of us don't have anything particularly interesting on our tax returns that wouldn't be revealed by bank statements or pay stubs etc, banks just prefer to be able to go to the IRS so they don't have to worry about authenticating the info we would otherwise provide.

But these discussions will continue as long as there are issuers that tend NOT to require such things, so that those that do look intrusive.  I haven't seen many complaints about mortgage companies demanding such things:  yes, it's usually a lot more money, but it is secured so the risk is much less.  It's just that nearly all companies require this, with no documentation loans being more expensive.

Caveats:

1) Yes, I know there are things on the transcript, such as disability status of spouse or child, and apart from the fact that this shouldn't matter, these individuals may not be on the card at all.   Similarly income of spouse if household income wasn't part of the application.

2) For a few individuals, such as say DJT, there are concerns about the information becoming public, for the most of us, the banks probably won't find someone willing to pay for a leak!

3) If your business life is, um, close to the edge, you can always just not report that sort of thing.  The IRS always likes to invoke Al Capone, but hey, one guy, a long time ago!

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Check out the Dark Web .. stolen CC numbers , account  passwords .. all there for someone to use

[marmaladepie]

I know right? I would have liked that request to pop up during the application process.

I'm going to just let it ride and see what happens. If they close the account, that's fine.