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Finally decided to read one of the promo mails I got from Discover. Noticed an interesting line item in their terms with the title of this thread.

You may not use your Discover Card Account while receiving benefits for Involuntary Unemployment, Disability, Leave of Absence, Hospitalization, Disaster or Death of a Child or Spouse.

That's under their payment protection plan they have. The last restriction seems rather harsh.

You can't use it if you're receiving benefits for death of a child? How exactly does that effect Discover at all?

Interesting that you can't use it if you're receiving benefits for unemployment, but if you're just without a job you can use it no problem. Doesn't make sense.

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Finally decided to read one of the promo mails I got from Discover. Noticed an interesting line item in their terms with the title of this thread.

That's under their payment protection plan they have. The last restriction seems rather harsh.

You can't use it if you're receiving benefits for death of a child? How exactly does that effect Discover at all?

Interesting that you can't use it if you're receiving benefits for unemployment, but if you're just without a job you can use it no problem. Doesn't make sense.

Uhh, that's a violation of the ECOA.

It shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction—

(1) on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the capacity to contract);

(2) because all or part of the applicant’s income derives from any public assistance program; or

(3) because the applicant has in good faith exercised any right under this chapter.

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They can't discriminate against an applicant (read: potential customer), but I guess they can do it once you become their customer.

This is the terms of their payment protection program, not the actual credit card. You lose your payment protection if you use the card while receiving benefits for those above reasons. You don't lose your ability to actually use the card.

Still seems weird to discriminate against someone who actually has money coming in.

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They can't discriminate against an applicant (read: potential customer), but I guess they can do it once you become their customer.

No, because "with respect to any aspect of a credit transaction" still applies -- see the definition of "applicant" from the act, because it includes continuation (e.g. revolving account).

(B) The term "applicant" means any person who applies to a creditor directly for an extension, renewal, or continuation of credit, or applies to a creditor indirectly by use of an existing credit plan for an amount exceeding a previously established credit limit.

You don't get to discriminate against someone after initial application because they marry or divorce.

Personally, I'd send a copy of the letter to all my legislators, the FTC, and the SEC. And, since the ECOA specifically mentions them, the Federal Reserve Board, and anyone else who happened to be handy.

I'm sorry, but telling someone not to use a credit card because their child is dead and they're receiving some $ for it? That's just evil.

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Which, in effect, is a constraint on credit, n'est-ce pas?

The other thing: say I'm a widow with minor children receiving social security (plus my work income).

If I applied for Discover, they'd sure as heck take my $ for the plan even though I wouldn't be eligible to be covered under it. That's basically stealing from widows, and (as a widow) that does not sit well with me.

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