Expiration Date on Balance Transfer Offer

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
9 posts
Rosiegirl7
Green Member
Green Member
 
Posts: 3
Joined: Tue Nov 06, 2012 7:29 am
Location: cape coral

Expiration Date on Balance Transfer Offer

Postby Rosiegirl7 » Tue Nov 06, 2012 8:16 am

5 years ago I did a balance transfer with Discover at 3.99% fixed. I have excellent credit and have made monthly payments as required.

Two months ago, Discover said this offer had expired and they upped the interest rate to 13.24%. I wrote to them and they credited the excess interest for 2 months but said that the interest rate change was valid.

So I called yesterday and spoke with 3 different people. Discover supervisor claims that they have no legal obligation to post an expiration date of a discounted interest rate monthly. They claim that it was on the original documentation which I no longer have and that is the only requirement that they have.

I am sure that this was an indefinite offer and that they 1. legally had the responsibility to show the offer was expiring (if it was) and 2. legally had the responsibility to inform me if they wanted to increase the rate allowing me the option of closing the credit card.

Does anyone have experience with Discover and the laws on this issue. I have taken it to the Discover page on Facebook to out them!


trumpet-205
Centurion Member
Centurion Member
 
Posts: 221
Joined: Sat Oct 23, 2010 1:51 pm
Location: CA, USA

Postby trumpet-205 » Tue Nov 06, 2012 1:24 pm

So you did not pay off that balance transfer you started 5 years ago? Promotional interest rate on balance transfer usually last between 6 to 18 months, so that 3.99% APR is already long gone.

Discover IS correct that they have no legal obligation of printing expiration date on your credit card statement. They only need to state the term on your terms and conditions.

Furthermore the only time a credit card company needs to inform you of APR increase is if it is something that is not on your terms and conditions.

An example of which inform is mandated: Your 13.24% APR is suddenly increased to 19.99% because you opened too many credit card accounts. You can close the card and pay off existing balance at 13.24% APR.

An example of which NO inform is required: You have 0% APR on balance transfer for 12 months, after which any balance unpaid will have interest rate back to original 19.99% APR. You cannot keep 0% APR, even when you closed the card right before the end of 12 months.

Sorry but I have to side Discover on this one. Also how come you have not pay off that balance transfer?
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)

CC Deville
Centurion Member
Centurion Member
 
Posts: 1044
Joined: Thu Aug 04, 2011 7:07 pm
Location: Phoenix

Postby CC Deville » Tue Nov 06, 2012 8:31 pm

I have never heard of Discover, or any other creditor outside of PenFed, that offers a "for life" balance transfer. After 5 years at 3.99% I would consider myself lucky and move on (although if I am going to be judgemental-which I am-after 5 years your happy behind should have paid it off).


DavidNY
Centurion Member
Centurion Member
 
Posts: 1332
Joined: Tue Jul 05, 2011 12:28 pm
Location: New York

Postby DavidNY » Tue Nov 06, 2012 8:42 pm

CC Deville wrote:I have never heard of Discover, or any other creditor outside of PenFed, that offers a "for life" balance transfer..


I have.

"Some Chase credit cardholders accepted promotional loan offers whereby the loan was subject to a fixed interest rate (APR) until the loan balance was paid off in full. In November 2008 and June 2009, Chase sent some of these cardholders a “Change in Terms” notice, raising their minimum monthly payment from 2% to 5% of their outstanding account balance and, in some cases, applying a $10 monthly fee to their account. Plaintiffs brought the litigation alleging that the Change in Terms was improper. Chase contends that the Change in Terms was lawful and denies that its conduct was in any way illegal or improper. Plaintiffs and Chase have agreed to a settlement to resolve this lawsuit."

Chase Bank USA Contract Settlement

CC Deville
Centurion Member
Centurion Member
 
Posts: 1044
Joined: Thu Aug 04, 2011 7:07 pm
Location: Phoenix

Postby CC Deville » Tue Nov 06, 2012 8:58 pm



Hmmm. I wonder if that is the situation with Rosie. 5 years seems very generous for a relguar balance transfer. I guess we will have to see if Rosie bothers to come back and tell us or if like her two Facebook posts, she was just venting. I'd also like to know what she was financing for 5 years....the national deficit?

Rosiegirl7
Green Member
Green Member
 
Posts: 3
Joined: Tue Nov 06, 2012 7:29 am
Location: cape coral

Postby Rosiegirl7 » Wed Nov 07, 2012 11:10 am

I paid off other balances that had higher rates and since this was so cheap, I saw no need to pay it off earlier. I believe that credit card companies should legally have to disclose expiration of dates. Every other credit card company I have ever worked with has shown this. If it isn't the law yet, I will make every effort to make it a law. There is suppose to be transparency in credit card laws.

While I appreciate the input I received, do you still have documentation from 5 years ago? I maintain that the balance transfer offer was indefinite and an expiration date was never disclosed.

Rosiegirl7
Green Member
Green Member
 
Posts: 3
Joined: Tue Nov 06, 2012 7:29 am
Location: cape coral

Postby Rosiegirl7 » Wed Nov 07, 2012 11:15 am

Not the national debt but my household has been hit with layoffs and forced early retirements and we didn't bail on our debts by filing for bankruptcy. Most of our debts are paid off despite long term unemployment. Be happy if you still have a job.


trumpet-205
Centurion Member
Centurion Member
 
Posts: 221
Joined: Sat Oct 23, 2010 1:51 pm
Location: CA, USA

Postby trumpet-205 » Wed Nov 07, 2012 6:42 pm

Rosiegirl7 wrote:I maintain that the balance transfer offer was indefinite and an expiration date was never disclosed.


Doubtful. No sane lender is going to have an indefinite promotional offer going on. It is like saying you can borrow $10,000 from me and pay me back $20 per month forever. I will never get to see the light of my $10,000.

I commend your effort of paying back debt without filing for BK to discharge or adjust your debt, but this one is on you. Just like rental contract, you should never throw away your terms and conditions. You learned your mistake, so it is time to move on.

My recommendation for you is to find a way to consolidate your debt. You can do this by personal loan, social lending, or another credit card (assuming your total debt is not huge). Otherwise pay down whichever has the least balance, and so on. That way you can free up more minimum payments.
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)

Iroquois
Platinum Member
Platinum Member
 
Posts: 99
Joined: Thu Oct 28, 2010 1:17 pm
Location: Chicago

It is both good form and a requirement to disclose adverse events

Postby Iroquois » Mon Nov 12, 2012 10:59 am

There sounds like 2 items that may be getting confused. First how long the draw period was for getting the promotional rate which almost always has a disclosed time period but whatever was disclosed was disclosed and that will govern.

The second is how long the rate is good for on the actual funds that were used. When an issuer promises a rate, be it the standard APR or the promotional APR a time frame is either disclosed or it is not. Again the documentation will govern. If you don't have it they absolutely should and should be able to show it to you. No one can just raise your rate without disclosing it (which was either done when you took the advance or when they made a decision to do so based on some valid criteria / although probably not at both times).

Issuers frequently get these things right, but not always, so ask for the documentation or the authority they used to make the decision - if the account agreement says at will, well then thats what you agreed to.

As too what your motives are or what you"should" be doing or how long you had the low rate for ; well thats all up to you and quite frankly matters little. Its all about what was agreed to and what was disclosed.

One would also think thats its just good a good form of communication and some basic common sense to let a customer know when something like this was happening and why. But thats just my opinion.



Return to “Discover, Diners Club”

Who is online

Users browsing this forum: No registered users and 1 guest