UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported):  March 31, 2012

 

Discover Card Execution Note Trust          

(Exact name of issuing entity in respect of the notes as specified in charter)

 

Discover Card Master Trust I          

(Exact name of issuing entity in respect of the Series 2007-CC Collateral Certificate as specified in charter)

 

Discover Bank

(Exact name of sponsor and depositor as specified in charter)

 

 

               Delaware

                (State of

            Organization)

333-141703-02

000-23108

033-54804

             (Commission

            File Numbers)

             51-0020270

           (IRS Employer

         Identification No.)

 

c/o Discover Bank

12 Read’s Way

New Castle, Delaware                                                                                              19720

(Address of principal executive offices)                                                                  (Zip Code)

 

Registrant’s Telephone Number, including area code:  (302) 323-7315

 

Former name or former address, if changed since last report:  Not Applicable

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[   ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[   ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))      

 


 

 

 Item 8.01        Other Events

 

Discover Bank, on behalf of the holder of the Seller Certificate, has previously designated for Discover Card Master Trust I (the “Trust”) certain Discover Card accounts originated by Discover Bank pursuant to the Second Amended and Restated Pooling and Servicing Agreement dated as of June 4, 2010, as amended (the “Pooling and Servicing Agreement”), between Discover Bank, as Master Servicer, Servicer and Seller and U.S. Bank National Association, as Trustee.  Capitalized terms used in this Item 8.01 and not defined herein shall have the meanings given to them in the Pooling and Servicing Agreement, which is on file with the SEC. 

 

As of March 31, 2012, the Receivables in the Accounts designated for the Trust totaled $32,597,669,661.55 and the total number of Accounts was 22,112,468.  Also, as of March 31, 2012, the average account balance was $2,705 (using 12,052,617 active accounts designated for the Trust for which cardmembers had a balance, a monetary transaction, or authorization within the past month), and the average credit limit was $9,592.  

 

We have set forth additional information below about the Accounts that are designated for the Trust.

 

Geographic Distribution.  As of March 31, 2012, the following nine states had the largest Receivables balances and comprised over 50% of the Receivables:

 

 

State

Percentage of

Total Receivables

California.................................

8.7%

Texas.......................................

8.3%

New York................................

6.4%

Florida.....................................

5.9%

Illinois......................................

5.9%

Pennsylvania..........................

5.2%

Ohio.........................................

4.6%

New Jersey.............................

3.7%

Michigan.................................

3.2%

Other States............................

48.1%

Total........................................

100.0%

 

Since the largest amounts of outstanding Receivables (approximately 5% or more of total Receivables) were with cardmembers whose billing addresses were in California, Texas, New York, Florida, Illinois, Pennsylvania and Ohio, adverse changes in the business or economic conditions in these states could have an adverse effect on the performance of the Receivables. 

 

Credit Limit Information. As of March 31, 2012, the Accounts had the following credit limits:

 

 

 

Credit Limit

Receivables

Outstanding

($000’s)

 

Percentage

of Total

Receivables

 

Number of

Accounts

 

Percentage

of Total

Accounts

Less than or equal to $5,000.00

$     2,575,401

 

7.9%

 

4,680,362

 

21.2%

$5,000.01 to $10,000.00

$     8,883,796

 

27.2%

 

7,179,914

 

32.5%

$10,000.01 to $15,000.00

$   13,713,358

 

42.1%

 

8,482,313

 

38.3%

Over $15,000.00

$     7,425,115

 

22.8%

 

1,769,879

 

8.0%

Total

$  32,597,670

 

100.0%

 

22,112,468

 

100.0%

 


 

 

 

 

Account Balance Information.  As of March 31, 2012, the Accounts had the following balances:

 

Account Balance

Receivables
Outstanding
($000’s)

 

Percentage
of Total
Receivables

 

Number of
Accounts

 

Percentage of Total Accounts

 

 

 

 

 

 

 

 

Credit Balance.........................................................

$     (27,956)

 

-0.1%

 

396,687

 

1.8%

No Balance...............................................................

$                -

 

0.0%

 

10,698,185

 

48.4%

$0.01 to $5,000.00....................................................

$ 11,148,882

 

34.2%

 

8,619,114

 

39.0%

$5,000.01 to $10,000.00...........................................

$ 11,790,059

 

36.2%

 

1,644,491

 

7.4%

$10,000.01 to $15,000.00.........................................

$   7,560,458

 

23.2%

 

627,405

 

2.8%

Over $15,000.00.......................................................

$   2,126,227

 

6.5%

 

126,586

 

0.6%

Total..........................................................................

$ 32,597,670

 

100.0%

 

22,112,468

 

100.0%

 

Seasoning.  As of March 31, 2012, all of the Accounts were at least 36 months old.  The ages of the Accounts as of March 31, 2012 were distributed as follows:

 

 

Age of Accounts

Percentage of

Total Accounts

 

Percentage of 

Total Receivables

Less than 12 Months.................................................................................

0.0%

 

0.0%

12 to 23 Months.........................................................................................

0.0%

 

0.0%

24 to 35 Months.........................................................................................

0.0%

 

0.0%

36 to 47 Months.........................................................................................

0.7%

 

0.8%

48 to 59 Months.........................................................................................

3.2%

 

3.4%

60 Months and Greater..............................................................................

96.1%

 

95.8%

Total.............................................................................................................

100.0%

 

100.0%

 

Delinquency Information.  As of March 31, 2012, the Accounts in the Trust had the following delinquency statuses:

 

 

 

Receivables

Outstanding ($000’s)

 

Percentage of Total Receivables

Total Receivables..........................

$   32,597,670

 

100.00%

Receivables Delinquent:

 

 

 

30 to 59 Days..................................

$        191,330

 

0.59%

60 to 89 Days..................................

$        143,997

 

0.44%

90 to 119 Days................................

$        127,992       

 

0.39%

120 to 149 Days..............................

$        119,128     

 

0.37%

150 to 179 Days..............................

$        118,521       

 

0.36%

180 Days and Greater....................

$                  -

 

0.00%

Total Delinquent............................

$        700,968        

 

2.15%

 

 

 

Number of

Accounts

 

Percentage of Total Accounts

Total Accounts.............................

22,112,468

 

100.00%

Accounts Delinquent:

 

 

 

30 to 59 Days.................................

32,601

 

0.15%

60 to 89 Days.................................

22,740

 

0.10%

90 to 119 Days...............................

19,304

 

0.09%

120 to 149 Days.............................

17,086

 

0.08%

150 to 179 Days.............................

16,557

 

0.07%

180 Days and Greater...................

                    -

 

0.00%

Total Delinquent...........................

108,288

 

0.49%

 


 

 

 

Minimum Monthly Payment and Full Balance Payment Rates.  Discover Bank calculates the monthly rate of cardmembers that made only the contractual monthly minimum payment due and the monthly rate of cardmembers that paid their full balance due as a percentage of the total Accounts in each case as of the beginning of the month.  The rates below are the average of monthly rates for the three months ended March 31, 2012.

 

 

 

 

 

Three Months

Ended

March 31,

2012

Minimum Monthly Payment Rate.............

8.43%

Full Balance Payment Rate......................

19.92%

 

Balance Reductions.  The Accounts designated for the Trust may have balance reductions granted for a number of reasons, including merchandise refunds, returns, and fraudulent charges. As of the three months ended March 31, 2012, the average monthly balance reduction rate for the Accounts designated for the Trust attributable to such refunds, returns and cardmember fraud was 0.60%.

 

Distribution of the Accounts by FICO® Score.  A FICO® score is a measurement derived from a proprietary credit scoring method owned by Fair Isaac Corporation to determine the likelihood that credit users will pay their bills.  Although Fair Isaac Corporation discloses only limited information about the variables it uses to assess credit risk, those variables likely include, but are not limited to, debt level, credit history, payment patterns (including delinquency experience), and level of utilization of available credit.  FICO® scores for any one individual may be determined by up to three independent credit bureaus.  In determining whether to grant credit to a potential account holder, Discover Bank uses a FICO® score as reported by one particular credit bureau.  Therefore, certain FICO® scores for an individual account holder based upon information collected by other credit bureaus could be different from the FICO® score used by Discover Bank.  FICO® scores of an individual may change over time, depending on the conduct of the individual, including the individual’s usage of his or her available credit, and changes in credit score technology used by Fair Isaac Corporation.

 

FICO® scores are based on independent, third-party information, the accuracy of which we cannot verify.  Discover Bank does not use standardized credit scores, such as a FICO® score, alone to determine the credit limit or other terms that are approved or applied on an account.  Rather, a FICO® score is one of many factors used by Discover Bank to assess an individual’s credit and default risk prior to initially approving an account or changing the terms of an account.  To the extent available, FICO® scores are generally obtained at origination of the account and monthly or quarterly thereafter.  Because the composition of the Accounts designated for the Trust may change over time, this table is not necessarily indicative of FICO® scores at origination of the Accounts or the composition of the accounts in the Trust at any specific time thereafter.

 

 

 

 

 

 

 

 

 

 

 


 

 

The following table reflects the Receivables as of March 31, 2012, and the composition of Accounts by FICO® score as refreshed during March 2012:

 

 

FICO® Credit Score Range  (1)(2)

 

Receivables

Outstanding

($000)

 

Percentage of
Total Receivables

No Score......................................................................

$                     130,536

 

0.40%

Less than 600..............................................................

$                     2,027,207

 

6.22%

600 to 659.....................................................................

$                     3,974,917

 

12.19%

660 to 719.....................................................................

$                   10,252,387

 

31.45%

720 and above.............................................................

$                   16,212,623

 

49.74%

Total.............................................................................

$                   32,597,670

 

100.00%

 

(1)        FICO® is federally registered service mark of Fair Isaac Corporation.

(2)        Starting in September 2011, Discover Bank began using FICO® scores derived from a more current credit scoring model as one factor to assess the credit and default risk of the Discover card portfolio, including the accounts designated for the Trust.   

 

Performance information for the Accounts in the Trust, such as yield, charge-offs and payment rate, is made available in connection with the Trust's Form 10-D filings.

 


 

 

 

SIGNATURES

 

            Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Discover Bank

(as Depositor for Discover Card Master Trust I and Discover Card Execution Note Trust)

 

 

 

 

Date: April 9, 2012                                By:       /s/ Patricia S. Hall

Patricia S. Hall

Assistant Treasurer and Assistant Secretary