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): December 31, 2015
 
Commission File Number: Commission File Number: Commission File Number: Commission File Number:
333-141703-02; 333-141703; 333-205455 333-141703-01;
333-167413; 333-167413-02;   333-167413-01;
333-191359; 333-191359-02;   333-191359-01;
333-205455-01 333-205455-02;   033-54804
  000-23108    
 
DISCOVER CARD DISCOVER CARD DISCOVER FUNDING DISCOVER BANK
EXECUTION NOTE MASTER TRUST I LLC  
TRUST      
 
(Exact name of issuing (Exact name of issuing (Exact name of depositor as (Exact name of sponsor as
entity in respect of the notes entity in respect of the specified in charter) specified in charter)
as specified in charter) Series 2007-CC Collateral    
  Certificate)    
 
Delaware Delaware Delaware Delaware
(State or jurisdiction of (State or jurisdiction of (State or jurisdiction of (State or jurisdiction of
incorporation or incorporation or incorporation or incorporation or
organization organization organization organization
of the issuing entity) of the issuing entity) of the depositor) of the sponsor)
 
c/o Wilmington Trust c/o Discover Bank Discover Funding LLC Discover Bank
Company 12 Read’s Way 12 Read’s Way 12 Read’s Way
Rodney Square North New Castle, Delaware New Castle, Delaware New Castle, Delaware
1100 North Market Street 19720 19720 19720
Wilmington, Delaware      
19890-0001      
 
(Address of principal (Address of principal (Address of principal (Address of principal
executive offices of the executive offices of the executive offices of the executive offices of the
issuing entity) issuing entity) depositor) sponsor)
  51-0020270  
  (IRS Employer Identification No. of  
  the sponsor)  
 
  47-4047337  
  (IRS Employer Identification No. of  
  the depositor)  

 


 

(302) 323-7315
(Telephone, including area code)

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

     Prior to January 1, 2016, Discover Bank transferred Discover card receivables existing in designated accounts directly to Discover Card Master Trust I (the “Trust”). On and after such date, Discover Bank began and will continue to instead transfer such receivables to Discover Funding LLC pursuant to the Receivables Sale and Contribution Agreement, dated December 22, 2015, between Discover Bank and Discover Funding LLC. Discover Funding LLC has and will continue to transfer the receivables it receives from Discover Bank to the Trust pursuant to the Third Amended and Restated Pooling and Servicing Agreement dated as of December 22, 2015, as amended (the “Pooling and Servicing Agreement”), between Discover Bank, Discover Funding LLC 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 December 31, 2015, the Receivables in the Accounts designated for the Trust totaled $28,873,470,690.58 and the total number of Accounts was 14,442,527. Also, as of December 31, 2015, the average account balance was $3,152 (using 9,159,920 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 $11,186.

Current Composition and Distribution of the Accounts

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

     Geographic Distribution. As of December 31, 2015, the following nine states had the largest Receivables balances and comprised over 50% of the Receivables:

  Percentage of  
State Total Receivables  
Texas 8.3 %
California 8.1 %
New York 6.4 %
Illinois 5.9 %
Florida 5.8 %
Pennsylvania 5.4 %
Ohio 4.7 %
New Jersey 3.7 %
Michigan 3.1 %
Other States 48.6 %
Total 100.0 %

 

     Since the largest amounts of outstanding Receivables were with cardmembers whose billing addresses were in Texas, California, New York, Illinois, Florida, Pennsylvania, Ohio, New Jersey and Michigan, 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 December 31, 2015, the Accounts had the following credit limits:

      Receivables   Percentage     Percentage  
Credit Limit     Outstanding   of Total   Number of of Total  
    ($000's) Receivables   Accounts Accounts  
Less than or equal to $5,000.00 $   1,155,707   4.0 % 2,046,340 14.2 %
$5,000.01 to $10,000.00 $   4,705,649   16.3 % 3,814,207 26.4 %
$10,000.01 to $15,000.00 $   9,726,290   33.7 % 6,064,708 42.0 %
Over $15,000.00 $   13,285,825   46.0 % 2,517,272 17.4 %
Total $   28,873,471   100.0 % 14,442,527 100.0 %

 

Account Balance Information. As of December 31, 2015, the Accounts had the following balances:

      Receivables   Percentage     Percentage  
      Outstanding   of Total   Number of of Total  
Account Balance   ($000's) Receivables   Accounts Accounts  
 
Credit Balance $   (31,762) -0.1 % 354,098 2.5 %
No Balance $   0   0.0 % 5,770,731 40.0 %
$0.01 to $5,000.00 $   8,112,064   28.1 % 6,246,245 43.2 %
$5,000.01 to $10,000.00 $   8,666,335   30.0 % 1,202,179 8.3 %
$10,000.01 to $15,000.00 $   7,155,619   24.8 % 584,849 4.0 %
Over $15,000.00 $   4,971,215   17.2 % 284,425 2.0 %
Total $   28,873,471   100.0 % 14,442,527 100.0 %
 
 
Seasoning. As of December 31, 2015, all of the Accounts were 60 months old or greater. The ages of the Accounts as of December 31, 2015 were distributed as follows:
 
  Percentage of   Percentage of  
Age of Accounts Total Accounts   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 0.0 % 0.0 %
48 to 59 Months 0.0 % 0.0 %
60 Months and Greater 100.0 % 100.0 %
Total 100.0 % 100.0 %
 
 
Delinquency Information. As of December 31, 2015, the Accounts in the Trust had the following delinquency statuses:
      Receivables   Percentage  
      Outstanding   of Total  
Delinquency Status   ($000's) Receivables  
Total Receivables $   28,873,471   100.00 %
 
 
Receivables Delinquent:            
30 to 59 Days $   116,861   0.41 %
60 to 89 Days $   88,274   0.31 %

 

 


 

90 to 119 Days $ 72,963 0.25 %
120 to 149 Days $ 60,937 0.21 %
150 to 179 Days $ 55,690 0.19 %
180 Days and Greater $ 0 0.00 %
Total Delinquent $ 394,725 1.37 %
 
 
      Percentage  
    Number of of Total  
Delinquency Status   Accounts Accounts  
Total Accounts   14,442,527 100.00 %
Accounts Delinquent:        
30 to 59 Days   17,984 0.12 %
60 to 89 Days   12,721 0.09 %
90 to 119 Days   9,563 0.07 %
120 to 149 Days   7,518 0.05 %
150 to 179 Days   6,713 0.05 %
180 Days and Greater   0 0.00 %
Total Delinquent   54,499 0.38 %

 

     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 twelve months ended December 31, 2015.

  Twelve Months  
  Ended  
  December 31,  
  2015  
Minimum Monthly Payment Rate 10.55 %
Full Balance Payment Rate 23.36 %

 

     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 twelve months ended December 31, 2015, the average monthly balance reduction rate for the Accounts designated for the Trust attributable to such refunds, returns and cardmember fraud was 0.63%.

     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 December 31, 2015, and the composition of Accounts by FICO® score as refreshed during December 2015:

        Receivables      
        Outstanding   Percentage of  
FICO®CreditScoreRange(1)     ($000) Total Receivables  
 
No Score   $   68,608   0.24 %
Less than 600   $   1,044,107   3.62 %
600 to 659 $   2,738,461   9.48 %
660 to  719 $   8,353,302   28.93 %
720 and above   $   16,668,993   57.73 %
Total   $   28,873,471   100.00 %
 
(1) FICO® is federally registered service mark of Fair Isaac Corporation.      
 
Static Pool Information              

 

     Although we have previously provided static pool information (Trust delinquency rates, charge-off rates, payment rates and yield) regarding the historical performance of the receivables for the Accounts based on the date of their origination, we are not providing such information in this filing because all of the Accounts are now 60 or more months past the date on which they were originated. The origination date for each Account is the date on which the Account is opened. Additional accounts were last designated for the Trust as of October 1, 2008; therefore, no accounts originated in years 2009 through 2016 are currently included in the Trust. If we designate additional accounts for the Trust that include accounts of more recent vintages, we will resume providing static pool data by vintage at that time.

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.

Date: January 15, 2016
Discover Funding LLC
(as Depositor for Discover Card Master Trust I
and Discover Card Execution Note Trust and as
registrant under Commission File Number 333-
205455)

By: /s/ Michael F. Rickert
_________________________________________
Michael F. Rickert
Vice President, Chief Financial Officer and
Treasurer

Discover Bank
(as registrant under Commission File Numbers
333-141703-01, 333-167413-01 and 333-191359-
01)

By: /s/ Michael F. Rickert
_________________________________________
Michael F. Rickert
Vice President, Chief Financial Officer and
Assistant Treasurer