4506'ed by Discovery

[pandmel]

Logged into my Discovery account this AM and it was locked for me to call.

Appeared to be a suspicious transaction alert.

 

Called in at 7 am and was told to call back after 8 am because I need to speak

to verification department.

 

Was told they would email me 4506 and to be on the lookout for the request via email

 and that I could upload last three bank statements to move the process quicker to

restore my account.

 

This account is a Discovery secured with max limit of $2500 and I use it for auto

pays and restaurants.  I pay the account weekly with automated bill pay to keep

the balance low.  The account has been open since July of 2017 and has still not

graduated. If they close it or if I do it is not a major loss other than the 3 year 

history which is the only reason I have not closed it. I have Citi Best Buy 3K and 

Visa from Credit union 25K.  Both fairly new. 

 

Current Fico 8 scores are EFX 664 TU 699 EXP 693

 

Not really sure why they would ask for a 4506 on a secured card that is PIF every month?

 

 

Edited August 5, 2020 by pandmel

[cv91915]

52 minutes ago, pandmel said:

Not really sure why they would ask for a 4506 on a secured card that is PIF every month?

Because they suck.

Edited August 5, 2020 by cv91915
I inadvertently ended that comment with question mark.

[cv91915]

Do you have any unusually large balances reporting on other revolving accounts?

[swimmingwithsharks]

Wow, who has heard of Disco doing this?? Over a secured card? 

 

How bizarre. 

[centex]

44 minutes ago, swimmingwithsharks said:

Wow, who has heard of Disco doing this?? Over a secured card? 

 

How bizarre. 

Definitely BIZARRE, but is IS Disc.  I seem to recall a thread in the kiddie pool about a number of Disc cardholders getting a 4506 notice, including some secured cardholders.  That was pre-rona if I remember correctly...

[hegemony]

myfuko site is full of posts about 4506-t from subprime discovery but I don't recall seeing it for a secured card. I'd tell them to pound sand. At least with Amex you can expect to be rewarded with a sweet CLI.

[TheVig]

1 hour ago, hegemony said:

myfuko site is full of posts about 4506-t from subprime discovery but I don't recall seeing it for a secured card. I'd tell them to pound sand. At least with Amex you can expect to be rewarded with a sweet CLI.

Unless you lie like some myfuko members do.

[pandmel]

3 hours ago, cv91915 said:

Do you have any unusually large balances reporting on other revolving accounts?

The only thing that has reported in the last 90 days is a 75K personal line

of credit from my credit union zero balance, car loan PIF, and a personal

loan PIF, and Best Buy Visa 3K limit zero balance.

 

Only thing that is different with discovery is I moved anything that would take discover to auto 

pay via discover to get the 1% back.  So now I am running around 3K per month 

through the account and do weekly bill pay each Monday.

 

 

Edited August 5, 2020 by pandmel

[pandmel]

43 minutes ago, TheVig said:

Unless you lie like some myfuko members do.

No lies ha..  I don't GAF if they close the account.  Only reason I have

not closed it is it's my oldest bestest tradeline.

 

In the FWIW category is that the card is still active.  I did use it this afternoon

at a local restaurant.

Edited August 5, 2020 by pandmel
Add the FWIW

[centex]

56 minutes ago, pandmel said:

 So now I am running around 3K per month 

through the account and do weekly bill pay each Monday.

 

 

THAT *could* be a trigger...especially if weekly payments are ALSO a new thing for you.  Some issuers have viewed such things as a potential indicator of bust-out likelihood. 

[cv91915]

1 hour ago, pandmel said:

The only thing that has reported in the last 90 days is a 75K personal line

of credit from my credit union zero balance, car loan PIF, and a personal

loan PIF, and Best Buy Visa 3K limit zero balance.

 

Only thing that is different with discovery is I moved anything that would take discover to auto 

pay via discover to get the 1% back.  So now I am running around 3K per month 

through the account and do weekly bill pay each Monday.

 

 

Cycling through more than your credit limit in one billing cycle may have triggered this, but please don't misunderstand that comment to suggest that I think it's rational.

 

Discovery is an awful company.  It looks like you have some other decent TLs.  How many other open major credit cards do you have?   What are your prospects for getting a rewards card from a reputable issuer?

[Kat58]

9 hours ago, pandmel said:

 

This account is a Discovery secured with max limit of $2500 and I use it for auto

pays and restaurants.  I pay the account weekly with automated bill pay to keep

the balance low.  The account has been open since July of 2017 and has still not

graduated. If they close it or if I do it is not a major loss other than the 3 year 

history which is the only reason I have not closed it. I have Citi Best Buy 3K and 

Visa from Credit union 25K.  Both fairly new. 

 

Current Fico 8 scores are EFX 664 TU 699 EXP 693

This^ is highly irregular. Discover knows something that we don't know?

 

[nemo]

Gotta laugh about this one.  That's pretty darned arrogant of Discovery.

 

Discovery, I've had Amex cards.  Amex cards have been friends of mine.  You're no Amex.

[shifter]

That does seem odd that it hasn't graduated. But mine graduated and I never use it. It's up to a whopping $5300 with several tiny CLIs.

[pandmel]

13 hours ago, cv91915 said:

Cycling through more than your credit limit in one billing cycle may have triggered this,

I think this is the reason.  I treat the account more like a checking account debit card than a credit card.

 

[pandmel]

10 hours ago, Kat58 said:

This^ is highly irregular. Discover knows something that we don't know?

 

I have a lot of new credit and numerous inquiries.  It still baffles me as to why not.

[shifter]

Disco has always been a risk-adverse creditor. All that activity in this economic climate, I'm sure we'll be hearing more occurrences like this in the coming months.

[pandmel]

On 8/5/2020 at 2:08 PM, cv91915 said:

 What are your prospects for getting a rewards card from a reputable issuer?

My CU card with 25K limit has cash back.  It only pays out annually.

I am going to wait until first of the year and app citi and amex.

 

I have three citi products Shell 200 limit, Exxon 600 limit and Best Buy Visa 3500.

 

I really do not have a need for cards other than rewards and to not use debit, which I despise.

 

My credit profile is thick enough to get what I need when I want it.  Just have no needs now.

 

My FICO simulator puts me in the Mid to Low 700's after first of year with ontime payments and low utilization.

[hdporter]

14 hours ago, shifter said:

Disco has always been a risk-adverse creditor. All that activity in this economic climate, I'm sure we'll be hearing more occurrences like this in the coming months.

 

I don't know.  I've always found Discover to be rather cavalier when it comes to doling out credit in $500 squirts ...   😜

[cashnocredit]

On 8/5/2020 at 5:12 AM, pandmel said:

...that I could upload last three bank statements to move the process quicker to

restore my account.

 

This account is a Discovery secured with max limit of $2500 and I use it for auto

pays and restaurants.  I pay the account weekly with automated bill pay to keep the balance low. 

As others have said, this probably triggered because multiple payments on card is associated with fraud. Very few regular consumers do this. The technique is usually used on regular CCs where a fraudster pays with multiple paper checks that wind up bouncing leaving the issuer with a balance multiples over the CL. It's probably automated and they might have increased their thresholds due to Covid-19 and trying to reduce their overall risk. When using CCs is always best to be like everyone else and just make one payment each month.

 

The other thing they do is calculate risk v profit. Discovery, more than most, likes and prefers people that carry a balance. So you aren't very profitable.

[StarkRaven$]

5 hours ago, cashnocredit said:

As others have said, this probably triggered because multiple payments on card is associated with fraud. Very few regular consumers do this. The technique is usually used on regular CCs where a fraudster pays with multiple paper checks that wind up bouncing leaving the issuer with a balance multiples over the CL. It's probably automated and they might have increased their thresholds due to Covid-19 and trying to reduce their overall risk. When using CCs is always best to be like everyone else and just make one payment each month.

 

The other thing they do is calculate risk v profit. Discovery, more than most, likes and prefers people that carry a balance. So you aren't very profitable.

I use to make 2 and on rare occasions 3 payments per month but stopped last month after reading about this.

[gbpo]

I have a Discover card with a 48k limit.  Had it for 5 years.  Over 1 million in spend.  They just 4506'd me last week.  

[hegemony]

1 hour ago, gbpo said:

I have a Discover card with a 48k limit.  Had it for 5 years.  Over 1 million in spend.  They just 4506'd me last week.  

that is a lot of spending on a turd rewards card. Did you comply with the 4506-t request.

[pandmel]

4506 hold on my discovery account has been lifted.

 

I did complete the 4506 and uploaded 3 months bank statements.  Bank statements verified substantially

more income than what is in their system for my income amount.

 

I did not want to lose the tradeline due to the fact it was my oldest reporting revolving account. It has been

a 4 year rebuild/repair process and the only thing that will improve my credit file is time and increasing AAoA.

 

I was told by their verification department that it was requested due to my account being eligible to graduate.

They also stated that EVERY discovery cardholder will be asked to do this at some point. Not sure if I believe

those statements but that was the excuse given.

 

Just this statement cycle so far. $4510 has posted to the account with -$3,873.87 in payments on a $2500 credit

probably has more than anything to do with this request. I understand that is not normal use on a secured card.

 

After logging back in the verbiage that says. "We review accounts every month for graduation..."that shows in the 

sidebar is gone. I may be about to graduate. My 39th statement cuts in 11 days.

 

[StarkRaven$]

3 hours ago, pandmel said:

4506 hold on my discovery account has been lifted.

 

I did complete the 4506 and uploaded 3 months bank statements.  Bank statements verified substantially

more income than what is in their system for my income amount.

 

I did not want to lose the tradeline due to the fact it was my oldest reporting revolving account. It has been

a 4 year rebuild/repair process and the only thing that will improve my credit file is time and increasing AAoA.

 

I was told by their verification department that it was requested due to my account being eligible to graduate.

They also stated that EVERY discovery cardholder will be asked to do this at some point. Not sure if I believe

those statements but that was the excuse given.

 

Just this statement cycle so far. $4510 has posted to the account with -$3,873.87 in payments on a $2500 credit

probably has more than anything to do with this request. I understand that is not normal use on a secured card.

 

After logging back in the verbiage that says. "We review accounts every month for graduation..."that shows in the 

sidebar is gone. I may be about to graduate. My 39th statement cuts in 11 days.

 

Your honest reported income paid off.