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  1. #1
    slaveofthegov Guest

    SSCRA and Discover Card

    What is the name of your state? TX

    I am currently serving overseas and have recently encountered problems with a Discover card account that I thought I paid off.

    In October of 1998, I applied to Discover Card for coverage under the SSCRA. This application was accepted by Discover Card. In February of 2000, I called Discover Card to find out what my Pay Off Balance was and subsequently paid the amount. I recieved a letter stating that my account was closed and a letter would be sent to the Credit Reporting Agencies stating this fact (I still have the letter).

    Recently, I have been hounded by collection agencies representing Discover Card. It took me a while to notice that the account number they were trying to collect on and the account number that I paid off were two different numbers. I tried to contact Discover Card and kept getting the run around since the account was an old account and since it was sent to a collection agency. I finally sent a written letter to contest the account to the collection agency. It was forwarded to Discover Card.

    I then called Discover Card, and lo and behold, they can now access my information and help me.

    My understanding of the SSCRA is that it provides a cap of 6% interest on all loans that were in effect prior entry into the Military. Based on that, I do not understand the following explination given by Discover Card:

    The representative stated that upon coverage of the SSCRA, I had a balance of $1653.05. She stated that once the SSCRA was applied to the account, this amount ($1653.03) was "put on hold" and not charged interest or fees until I completed my military service. She stated that a new account number was then opened, by Discover, and applied to my existing account for new purchases.

    She stated that the amount that I "paid off" ($652.03) consisted of purchases that I made after signing up for SSCRA. I am not questioning whether I have to pay charges made after signing up for SSCRA.

    Since I requested my balance and paid said balance, I believed that my account was paid in full. I proceeded to cut up the card and have not used it since payoff. I also did not remain in contact with Discover Card. The representative stated that upon the expiration of my initial enlistment, the amount $1653.05 was then added back to my account, and subsequently has grown due to late fees and penalties. Well, I re-enlisted in the military and have not had a break in service. As stated above, I did not forward Discover Card my re-enlistment paperwork because I thought that the account was paid in full.

    It was my understanding that according to the SSCRA, a 6% cap on interest would be applied to my existing balance, in order to assist me in paying off my account.

    Basically, my question is, does/did Discover Card have the right to "hide" my balance of $1653.05 and then after my initial contract with the military was up re-apply that balance. Or should the balance have remained open and charged at 6% interest. At the time that I called Discover to find out my pay off balance, I would have paid the full amount no matter what it was.

    v/r
    Scott
  2. #2
    stevek3 is offline Member
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    Quote Originally Posted by slaveofthegov
    What is the name of your state? TX

    I am currently serving overseas and have recently encountered problems with a Discover card account that I thought I paid off.

    In October of 1998, I applied to Discover Card for coverage under the SSCRA. This application was accepted by Discover Card. In February of 2000, I called Discover Card to find out what my Pay Off Balance was and subsequently paid the amount. I recieved a letter stating that my account was closed and a letter would be sent to the Credit Reporting Agencies stating this fact (I still have the letter).

    Recently, I have been hounded by collection agencies representing Discover Card. It took me a while to notice that the account number they were trying to collect on and the account number that I paid off were two different numbers. I tried to contact Discover Card and kept getting the run around since the account was an old account and since it was sent to a collection agency. I finally sent a written letter to contest the account to the collection agency. It was forwarded to Discover Card.

    I then called Discover Card, and lo and behold, they can now access my information and help me.

    My understanding of the SSCRA is that it provides a cap of 6% interest on all loans that were in effect prior entry into the Military. Based on that, I do not understand the following explination given by Discover Card:

    The representative stated that upon coverage of the SSCRA, I had a balance of $1653.05. She stated that once the SSCRA was applied to the account, this amount ($1653.03) was "put on hold" and not charged interest or fees until I completed my military service. She stated that a new account number was then opened, by Discover, and applied to my existing account for new purchases.

    She stated that the amount that I "paid off" ($652.03) consisted of purchases that I made after signing up for SSCRA. I am not questioning whether I have to pay charges made after signing up for SSCRA.

    Since I requested my balance and paid said balance, I believed that my account was paid in full. I proceeded to cut up the card and have not used it since payoff. I also did not remain in contact with Discover Card. The representative stated that upon the expiration of my initial enlistment, the amount $1653.05 was then added back to my account, and subsequently has grown due to late fees and penalties. Well, I re-enlisted in the military and have not had a break in service. As stated above, I did not forward Discover Card my re-enlistment paperwork because I thought that the account was paid in full.

    It was my understanding that according to the SSCRA, a 6% cap on interest would be applied to my existing balance, in order to assist me in paying off my account.

    Basically, my question is, does/did Discover Card have the right to "hide" my balance of $1653.05 and then after my initial contract with the military was up re-apply that balance. Or should the balance have remained open and charged at 6% interest. At the time that I called Discover to find out my pay off balance, I would have paid the full amount no matter what it was.

    v/r
    Scott

    That's a lot of info, but what is your ultimate goal?
  3. #3
    Ladynred is offline Senior Member
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    Have you asked anyone in the JAG office ??
  4. #4
    stevek3 is offline Member
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    Quote Originally Posted by Ladynred
    Have you asked anyone in the JAG office ??
    How can a TV show assist him in solving his problem?
  5. #5
    Ladynred is offline Senior Member
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    Don't be such an ass . Every military installation has a military legal office/representative that soldiers can go to for just this kind of help. Judge Advocate General = JAG -- obviously you know nothing about the military. If its not the exact term then our O.P. still knows exactly what I'm talking about.
  6. #6
    stevek3 is offline Member
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    Quote Originally Posted by Ladynred
    Don't be such an ass . Every military installation has a military legal office/representative that soldiers can go to for just this kind of help. Judge Advocate General = JAG -- obviously you know nothing about the military. If its not the exact term then our O.P. still knows exactly what I'm talking about.
    Well, maybe you're right, maybe JAG can lend him a hand. I know it's only TV, but that broad on the show seems helpful *and* hot.
  7. #7
    Shay-Pari'e is offline Senior Member
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    JAG cannot even advise on this issue. JAG is strictly for military issues. This is a civilian matter, and JAG has no jurisdiction really to even advise.
  8. #8
    slaveofthegov Guest
    Quote Originally Posted by stevek3
    That's a lot of info, but what is your ultimate goal?
    My ultimate goal is to find out whether or not it was legal for Discover to remove the balance from the books until a later date when I get out of the military? According to the SCRA, CC Companies are not allowed to go back and recharge interest after the Servicemember gets out of the military, to me, this seems like much the same thing.
  9. #9
    Ladynred is offline Senior Member
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    You need to see a lawyer that is familiar with the SSCRA. Sounds to me like Discover is playing fast and loose with the law, but you'll need someone who knows how to nail them for it.
  10. #10
    slaveofthegov Guest
    Quote Originally Posted by Ladynred
    You need to see a lawyer that is familiar with the SSCRA. Sounds to me like Discover is playing fast and loose with the law, but you'll need someone who knows how to nail them for it.
    Thanks for your advice. That is why I posted my question here. Does anybody know of any other sites where I can post my questions?

    Thanks
  11. #11
    stevek3 is offline Member
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    Quote Originally Posted by slaveofthegov
    My ultimate goal is to find out whether or not it was legal for Discover to remove the balance from the books until a later date when I get out of the military? According to the SCRA, CC Companies are not allowed to go back and recharge interest after the Servicemember gets out of the military, to me, this seems like much the same thing.

    Instead of scooting around looking for answers to legal questions, seems to me your obvious solution is to simply talk and write to Discover supervisors until you get the response you're looking for. You'll eventually get it. Forget about the customer service reps on the bottom of the food chain. Climb your way up the food chain. Otherwise, you're just wasting time and frustrating yourself. Right now, even if you're totally wrong, no large company wants to create an appearance of being an unfair jerk to people in the military. Discover is no different. Use this fact to your advantage. Hell, everybody and their mother used and continues to use 9/11 to their own self-serving benefit, you might as well let Iraq steer you to the Promised Land, too.
  12. #12
    slaveofthegov Guest
    Quote Originally Posted by stevek3
    Instead of scooting around looking for answers to legal questions, seems to me your obvious solution is to simply talk and write to Discover supervisors until you get the response you're looking for. You'll eventually get it. Forget about the customer service reps on the bottom of the food chain. Climb your way up the food chain.
    Funny you should say that. Because when I first started calling Discover and tried to get some answers they told me that they couldn't help b/c the account had been sent to collections. Well, I finally wrote a letter to the collections agency and now I am talking to a higher up in Discover. But before I drop the "you're skirting the law" with a military member bomb on them, I want to at least be sure of the legal facts. I am not worried about it now because I originally thought it might be ID theft, but now that I know where the charges came from it is a challenge for me. I just wonder how many other service men and women have been screwed like this?
  13. #13
    Ladynred is offline Senior Member
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    You can bet there are a lot of 'em. Discover is nasty and very aggressive in collecting. They will sue for $50 just to make their point. Skirting the law with deceptive practices like what you've experienced wouldn't be out of character for them at all.
  14. #14
    stevek3 is offline Member
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    Quote Originally Posted by Ladynred
    You can bet there are a lot of 'em. Discover is nasty and very aggressive in collecting. They will sue for $50 just to make their point. Skirting the law with deceptive practices like what you've experienced wouldn't be out of character for them at all.

    Actually, you could not be more wrong about Discover. In fact, they LITERALLY send Hallmark cards and use other extremely sweet approaches in their initial collection tactics. Or maybe it's not Hallmark, I can't recall if it's Hallmark they're presently using. Regardless, it's soft as a feather. A carrot rather than a stick. People are so blown away by the method, that they respond. Really. Sure, as time goes on, any collection department in any company gets more aggressive. Why shouldn't they? But Discover's early attempts are like tossing pussy willows at a Girl Scout.

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