Why did Discover issue refund?

[SouthJamaica]

I was using my Discover card for some balance transfers, on which I would be charged interest.

In order to ensure that I had a zero balance, I overpaid enough to cover the interest.

So what does Discover do? At the statement closing date, it (a) issues me a refund check for the credit balance, and (b) charges the interest, so that I wind up with a balance even though I was looking for a zero balance to be reported.

[BallBounces]

That would irritate me.

[CreditCuriosity]

Would slightly irk me, but pay the residial interest and ask them to report off cycle as they will

[SouthJamaica]

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@CreditCuriosity wrote:

Would slightly irk me, but pay the residial interest and ask them to report off cycle as they will

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Great idea. Thank you for that I had already paid the interest... all of $18. So I called and they said I should call back when the payment's posted, and the balance is back to zero, and they will report it (as you said they would).

Thanks!!!!!!!!!!!!!!!!!!!!!

[Anonymous]

LMAO

You should know better than try to out smart an Idiot.  Preemption doesn't work always.  The nuances of lenders is bewildering while one keeps the cash for a cycle or two before issuing a refund check and others are too honest to keep it for an extra minute while the statement posts.

If you were paying interest on this cycle anyway why not wipeout the majority of the balance, wait for the statement, and cut a payment for the balance?  They tend to waive interest that's trailing if you have a compeling arguement.

*shrug*

Maybe I'm thinking of a different lender.  Might have been Citi/BestBuy that waived something like $600 in promo interest when the person held the debt too long and the promo expired mid cycle or something.

[AverageJoesCredit]

Yes SJ, this is what they do. When i paid back a bt , i accidently overpaid . They sent me a check. Im not sure if i had kept it there whether or not i could have just used that amount in purchases to equal out or not but i do temember getting a check.....that i accidently shredded the first time with all my cli denial letters lol.

Sorry SJ

[AverageJoesCredit]

Only Disco can go from Idiot to Hero

[SouthJamaica]

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@AverageJoesCredit wrote:
Yes SJ, this is what they do. When i paid back a bt , i accidently overpaid . They sent me a check. Im not sure if i had kept it there whether or not i could have just used that amount in purchases to equal out or not but i do temember getting a check.....that i accidently shredded the first time with all my cli denial letters lol.

Sorry SJ

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Yes but in this case on the same day they issued the refund and charged me the interest.

Why couldn't they deduct the interest from the credit balance before the refund if they were so bound and determined to issue a refund?

[AverageJoesCredit]

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@SouthJamaica wrote:

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@AverageJoesCredit wrote:
Yes SJ, this is what they do. When i paid back a bt , i accidently overpaid . They sent me a check. Im not sure if i had kept it there whether or not i could have just used that amount in purchases to equal out or not but i do temember getting a check.....that i accidently shredded the first time with all my cli denial letters lol.

Sorry SJ

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Yes but in this case on the same day they issued the refund and charged me the interest.

Why couldn't they deduct the interest from the credit balance before the refund if they were so bound and determined to issue a refund?

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Because they're idiots?😄

[HeavenOhio]

It's known that Discover (and Chase) will report upon request, so that part isn't a big deal. I'd be more annoyed about the possibility of taking an extra month to reset the grace period. I wonder if it would have helped had you involved customer service when you wanted to pay to zero.