Consumer complaint received 2018-05-25
Company: DISCOVER BANK
State: IL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Card was charged for something you did not purchase with the card

Complaint:
A California merchant contacted me in XX/XX/XXXXseeking business of settling a debt for me. I refused. It made unsolicited calls a year later, in XX/XX/XXXX. I took the bait this time, but hesitantly. I paid it {$3500.00} via a Discover Card charge ( attached ). As stated on the charge slip, the funds were to be held in the attorney escrow account until I authorize it released. I did release it a few month later. 

I gave them later another Discover Card authorization, this time they were not collect the money until certain conditions set and judged by me were met. These conditions were written on the credit authorization I signed. It is also attached ( dated XX/XX/XXXX). 

The company without my permission and without meeting those conditions charged my credit card for {$3900.00}. 

I disputed this unauthorized charge of {$3900.00} with Discover based on the following : 1- I have been with Discover Card for 32 years. I have ALWAYS paid my bills on time. I have never, not even once in 30 years, been late with my payments. So, I am a credible customer. 

2- The authorization of XX/XX/XXXX, had stipulations, namely : " Full payment of the balance, to be charged after ( 1 ) the successful acceptance and execution of the settlement agreement on the second mortgage BY ALL PARTIES, and ( 2 ) the release of the 2nd Mortgage Lien. '' The firm did not fulfill these terms but used the authorization against my advice. I objected but the firm would not refund the money. I contacted Discover card and disputed it. 

3- I did not know much about the merchant, XXXX XXXX XXXX ATTORNEY. Later I learned that both the public and the regulators have had a lot of problems with it. For example, the BXXXX XXXX XXXX rates this company F, its lowest. Here is the link : XXXX XXXX XXXXXXXX. The firm is dysfunctional and it does not abide by its agreement and uses intimidation. 

4- To prove that the charge is valid, Discover Card forwarded me a letter from the firm, datedXX/XX/XXXX, signed by a XXXX XXXX XXXX stating that I was her client. I was not and the State of California confirms that she is NOT an attorney. 

5- Discover Card forwarded the contract between me and the firm. Discover Card does not appear anywhere in the contract '' and it is not a party to it. 

6- To prove that the charge is valid, Discover Card used the contract but ignored its provision for settling disputes : Article 9 say the matter shall go to Arbitration. Discover Card acted as an Arbitrator when in fact it is not, and I never appointed it to be an Arbitrator. 

6- After several rounds of contacting and disputing this charge with Discover in XX/XX/XXXX and XX/XX/XXXX, Discover Card without my authorization or consent acting as the judge and an arbitrator in this case, gave the money to the company against my objections. 

6- I wrote to Discover Card and Discover Card understood that I had put the stipulations in the authorization form, and that only I, as the signer, can say whether or not the conditions are met, and that I did tell Discover Card the conditions were not met. 

I need Discover Card to refund me {$3900.00} plus interest and a letter of apology for usurping my rights, violating FCRA, RESPA an FDCPA rules, acting as a collector, court of law, an arbitrator all at the same time when in fact its sole role was a card issuer and should have heeded my advice and not engage in improper and illegal acts of settling disputes when it was not asked nor was it authorized or chartered to do so.

Company response to consumer: Closed with explanation