Horrible Experience with Discover Fraud Dept

[roseblanch]

Hey Everyone,

I wanted to share my recent nightmare with Discover. I am long time reader here - I dont post very often. I started pretty much at the bottom about 5 years ago, rebuilding wise. Got my shopping cart trick cards and credit one.  Happy to report several years later, I am in prime territory now and recently got a Chase Freedom and we closed on our first home end of March ( with 4% !).  A Discover It was always the card I wanted, I had applied in the past but was denied.  After closing, I saw an ad on Amazon offering 75.OO back with your first Amazon purchase w a Discover It.  I decided to go for it and was instantly approved for 6k. Wooohooo! This was Fri.  Today I get contacted from their Fraud dept, they needed verification since my address didnt match my credit report. I explained that we just bought a home and moved, like 2 weeks ago. The only documentation they would accept was a copy of my DL showing my new address.  I do not have that yet - the whole recent move thing.  They said if they didnt get this within 14 days, they would close my account, which shows as negative - closed by credit grantor.  She would accept any alternative documents like the print out of where I changed my address online for my DL etc. I am in TX and they mail ID cards, they dont print them at the DMV, so its out of my control whether it arrives within 14 days or not.  I chose to close my account with them rather then risk them closing it on.  I am soo angry. I have a background in fraud management and there are soo many other ways they could have verified my identity.  I'm just speechless at how rigid she (the Discover rep) was about the copy of a DL being the only solution.  Mind you I do have a valid DL I offered to send - it just doesnt reflect my new address yet.

[HeavenOhio]

Sorry to hear about your experience.

"Closed by credit grantor" has no effect on scoring. Of course, it's nicer when you're the one to close, but it's no big deal.

When you move, it's best to make sure your new address is on your credit report before applying for anything new. This can be accomplished by changing your address on your current accounts.

[mumbogray]

If you want to give them a second chance, maybe you could ask them to reopen the account after you get your ID!

[Anonymous]

Did you try calling back to speak with another specialist or even supervisor? Sometimes it's amazing what talking to someone else or a superior can do in a situation like this if you haven't already gone ahead to close the account.

[UpperNwGuy]

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@HeavenOhio wrote:

When you move, it's best to make sure your new address is on your credit report before applying for anything new. This can be accomplished by changing your address on your current accounts.

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This is really important.  I've seen too many stories here of people who applied for a new credit card for home improvements the very next day after they closed on a house purchase, and problems nearly always arise.  In today's world of "know your customer" the banks want your drivers license and your credit bureau information to reflect your new address.  It's easy to prove that you use used to live at your old address, but that's not good enough for the banks.  It isn't just Discover.

[roseblanch]

Already done.  I just checked my report, my new address reported as of 4/3.   My issue wasnt that they requested proof of address, that is reasonable.  My frustration was the limited ( one) way they chose to verify.  I have any number of documents I could have sent over.

[zerofire]

Generally when it comes to address mismatch the only way to verify is a drivers licence or state id card. For simplicity a drivers licence acts like a state id card so they will only issue one or the other. The state id card is for kids and other non-driving individuals. Like mentioned earlier you should update your other cards as soon as you move so that they can report the new address for you. Texas like most states should have handed you a temporary driving permit at the office so you can drive in the state while you get the new card. Also some states only require you to pen the new address on the line in the back if you stayed in the state as well as report it and it would have been valid. The common saying is going to stand "do not get attempt to get new credit shortly after you move".

[tcbofade]

I'm sorry that happened to you. 

Discover front line customer services reps are generally awesome.

...and also a different departmant than Discover Fraud.

I had a very different issue with them, and it was eventually resolved correctly and to my satisfaction, but the memory of how I was spoken to and treated by the Discover Fraud team causes my Discover card to sit in the sock drawer. 

I get it.

[ChargedUp]

After changing your address, you can ask the DMV for a driving record extract. This will be an official DMV printout with your new address and may be enough to satisfy Discover until your actual license shows up.

It's odd that Discover wouldn't see the new mortgage on your credit reports and be able to put 2 & 2 together.

[Anonymous]

I feel that if you had chose hang in there and try to work something out with them, you likely would have seen a better outcome. Should have requested to speak to someone higher up, who eventually could offer more time for the proper documets to be received. 

Ultimately you should have waited to app for Credit until after everything was said an done. Typically Creditors like to see 6MO-1YR on an app.

Thus why they as for previous address, and time there. Now mor e than ever consumers should be aware of accurate address info when applying for credit, for just this scenario. And Identity fraud in general.