Discover account closed

[Cred4All]

@Ahava18 any chance you can share what exactly the reasons were in the letter?  I believe we're all in the dark as to any reason that was provided unless you listed it and I missed it.

[Ahava18]

@Cred4All I'm as much in the dark as you. In my OP I shared the letter Discover sent stating the reason for account closure.

Here is the highlight:

The following reason(s) will help explain our decision:
- WE ARE NO LONGER ABLE TO MEET YOUR SERVICING NEEDS

Unfortunately that's all I got.

[CreditInspired]

Hi OP

After re-reading everything, I suggest before deciding on which route to take—begging and pleading or guns ablazing—find out from the horse’s mouth—your AU(s)—what the heck has he/she done to cause your CC account to be closed.

IMHO, that’s where I would start first.

Then, understand where other members’ responses to your questions are coming from. That yes, the actions of an AU can and will reflect on you. It doesn’t matter that you’re ultimately responsible for the AU charges, which of course you are, Discover wants to extricate itself from any foreseeable risks.

You/We don’t know what the AU might have been doing that spooked Discover and that’s why it’s important to find out from him/her.

Also, extremely important from my POV. If same AU is on any other CCs of yours, IMHO, I would remove them ASAP so this same scenario won’t happen with another lender.

Just my 2 cents and GL2U on whatever you decide to do.

[UncleB]

Hi @Ahava18, here are some questions that might help you figure out what's going on (you don't have to answer here if you don't want to, but these are some things Discover might be concerned with):

• Do you have multiple AUs?  Are you related to them?  Do you have the same last name?
• Has your AU been using the card in an odd way, such as cycling your credit line (maxing out, then quickly paying off over and over)?
• Has your AU been using the card for large purchases that could easily by converted back to cash?
• Has your AU been using the card extensively for Paypal, Venmo, or similar?
• Has your AU been using the card for cash advances, even if quickly paid back?
• Is your AU a US citizen?

There are of course many things they might look at (and any of these things alone might be fine), but these are some of the 'biggies' that can sometimes trip people up. 

As for your question about going in 'tough' I would personally avoid that myself.  Lenders are are not required to offer anybody an account, and being difficult at this point might further discourage them from wanting your business (i.e. you have rights as a consumer, but there is no "right" to an account).  Just my 2¢.

[Queen_Etherea]

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@UncleB wrote:

Hi @Ahava18, here are some questions that might help you figure out what's going on (you don't have to answer here if you don't want to, but these are some things Discover might be concerned with):

• Do you have multiple AUs?  Are you related to them?  Do you have the same last name?
• Has your AU been using the card in an odd way, such as cycling your credit line (maxing out, then quickly paying off over and over)?
• Has your AU been using the card for large purchases that could easily by converted back to cash?
• Has your AU been using the card extensively for Paypal, Venmo, or similar?
• Has your AU been using the card for cash advances, even if quickly paid back?
• Is your AU a US citizen?

There are of course many things they might look at (and any of these things alone might be fine), but these are some of the 'biggies' that can sometimes trip people up. 

As for your question about going in 'tough' I would personally avoid that myself.  Lenders are are not required to offer anybody an account, and being difficult at this point might further discourage them from wanting your business (i.e. you have rights as a consumer, but there is no "right" to an account).  Just my 2¢.

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Wait... please explain to me why these things look bad. Isn't the whole purpose of getting cash back cards to use them on large/many purchases so we can get as much cash back as possible? Why would using it for PayPal be a bad thing? I'm honestly confused here!

[UncleB]

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@Queen_Etherea wrote:

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Wait... please explain to me why these things look bad. Isn't the whole purpose of getting cash back cards to use them on large/many purchases so we can get as much cash back as possible? Why would using it for PayPal be a bad thing? I'm honestly confused here!

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Yes, the purpose of cards is to use them, and under normal circumstances most banks would love for your to use their cards heavily.  In this case, though, something more is going on and we're trying to help the OP figure that out.

Using a card for Paypal isn't a bad thing by itself, but if you continuously use Paypal (or similar) to send large amounts of cash to a family member (or your own business) it's well-known that this can cause problems. 

Like I mentioned above, these things by themselves are often not a problem, but combined with other issues can be problematic.  That said, without knowing more about the OP's specific situation all we can do is speculate at this point.

[HeavenOhio]

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@Ahava18 wrote:

Should I reach out begging and pleading to have my account reopened (I have a Discover Checking as well that I can maybe use to have them reconsider my case), or should I come in tough talking legal jargon and consumer rights, demanding to have my account reopened.

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Split the difference. Use businesslike verbiage politely requesting that your account be reopened.

@Queen_Etherea, using PayPal to send cash is a problem because the bank thinks you're trying to get around a cash advance (along with its fee and immediate interest). If you want to send cash to someone via PayPal, do it from your checking account rather than from a card. Using PayPal and a card is absolutely fine if you're buying a product or service from a merchant.