Product: Debt collection

Formal Complaint Regarding Fraudulent Account, FCRA Violations, and Unauthorized Legal Actions by Discover Bank To Whom It May Concern at the Consumer Financial Protection Bureau, I am writing to file a formal complaint against Discover Bank concerning a fraudulent account opened in my name, improper reporting practices, violations of the Fair Credit Reporting Act ( FCRA ), and unauthorized legal actions taken against me. 

Background and Timeline of Events : 1. Initial Identity Theft Incident ( XX/XX/XXXX ) : - While attempting to purchase a vehicle, I noticed a significant drop in my credit score. 
- Upon reviewing my credit reports, I discovered several unauthorized accounts opened without my knowledge or consent. 
- I promptly filed an identity theft report with the XXXX Police Department ( Report Number : XXXX ) and submitted a detailed complaint to the Federal Trade Commission ( FTC ). 

2. Implementation of Fraud Alerts ( XXXX ) : - To protect my credit, I requested and successfully placed a 7-year fraud alert with all three major credit bureaus : XXXX, XXXX, and XXXX. 
- These alerts were intended to prevent any new unauthorized accounts from being opened in my name without stringent verification processes. 

3. Unauthorized Discover Bank Account ( XX/XX/XXXX ) : - Despite the active fraud alerts, a fraudulent account was opened with Discover Bank under my name, accruing unauthorized charges totaling {$7400.00}. 
- Discover Banks records indicate acknowledgment of this account being fraudulent, yet no effective measures were taken to resolve the issue on their end. 

4. Improper Charge-Off Reporting : - My Experian credit report shows that Discover Bank charged off the fraudulent account. 
- According to IRS guidelines, a creditor who charges off a debt is required to issue a Form 1099-C ( Cancellation of Debt ) to the debtor. I have never received such a form from Discover Bank. 
- Furthermore, Discover Bank continues to report this charged-off account negatively on my credit reports, which is adversely affecting my credit score and financial reputation. 

5. Unauthorized Collection and Legal Actions : - Contrary to the acknowledgment of the fraudulent nature of the account, Discover Bank initiated collection efforts against me. 
- A lawsuit was filed in an attempt to collect the alleged debt, resulting in a default judgment due to my unawareness of the legal proceedings. 
- These actions have caused significant stress, financial strain, and have unjustly held me responsible for a debt I did not incur. 

Violations Noted : - Fair Credit Reporting Act ( FCRA ) Violations : - Failure to accurately report information and correct known errors in my credit file. 
- Continued reporting of a fraudulent account despite evidence and acknowledgment of identity theft. 
- Negligence in conducting a reasonable investigation upon notification of the dispute. 

- IRS Reporting Violations : - Failure to issue a Form 1099-C upon charging off the alleged debt, as required by IRS regulations XXXX 

Impact on Me : - Financial Hardship : - Denial of credit opportunities and higher interest rates due to damaged credit. 
- Unwarranted legal fees and costs associated with defending myself against the wrongful lawsuit. 

- Emotional Distress : - Significant stress and XXXX  resulting from continuous collection attempts and legal actions for a debt I did not incur. 

- Reputational Damage : - Harm to my credit reputation, which affects both personal and professional opportunities. 

Steps I Have Taken to Resolve the Issue : - Provided copies of the police report and FTC identity theft report to Discover Bank. 
- Notified Discover Bank of the fraud alerts placed on my credit files. 
- Disputed the fraudulent account with all three credit bureaus, attaching all supporting documentation. 
- Attempted to communicate with Discover Bank 's fraud department to resolve the issue amicably. 


Conclusion : The actions of Discover Bank have caused undue hardship and are in direct violation of federal laws designed to protect consumers. I kindly request the CFPB 's assistance in resolving this matter promptly to prevent further damage to my financial well-being. 

Attachments : - Copy of the XXXX Police Department Identity Theft Report. 
- FTC Identity Theft Affidavit. 
- Correspondence with Discover Bank acknowledging the fraudulent account. 
- Copies of credit reports showing the erroneous entries and charge-off. 

Thank you for your time and consideration. I am available to provide any additional information or documentation required to facilitate this investigation. 

Sincerely, XXXX XXXX