Discover Credit Card Complaint

Discover Credit card department,

Payoff process Kentucky

The Credit Card Accountability Responsibility and Disclosure Act of - requires that when a borrower makes payments in excess of the minimum amount, the extra amount must go to balances with the highest interest rate first. Discover card has failed to do this for at least a year, causing me to pay over $400.00 in interest that I should have not had to pay. Their not following the law is most obvious last month ( - - ) when I had a balance of $2400.00 subject to a 22.24 % interest rate, and a balance of $6400.00 with a 0 % interest rate. The minimum payment on - statement was $170.00, however I paid $6500.00 for that month 's payment, which is obviously a lot over the minimum payment. Since so much of this payment was over the minimum payment, according to the Act, the $6300.00 over the minimum should have gone to the $2400.00 at - & interest, and should have paid that balance off completely and no more interest should have been incurred. Instead, on my - - bill, there is still a balance of $450.00 subject to the 22.24 %. This has been happening through -. I contacted Discover customer service at the end of - and questioned them about this and they said that I did not understand the law correctly and that they could apply the payments in a proportionate percentage. Upon my reading of the statute, and other commentary I 've read regarding the statute, I believe that Discover is incorrect and is charging interest when I should have been able to pay off the 22.24 % interest balance a long time ago through my consistently paying more than the balance. I do not know the exact amount they would owe me for this incorrect application of my payments, however I believe it to be over $400.00 from both - and - interest charges that were charged incorrectly.