Consumer complaint received 2022-05-31
Company: DISCOVER BANK
State: IL
Product: Debt collection
Sub-product: I do not know
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
Complaint against Discover and XXXX XXXX XXXX, XXXX. 
Dear CFPB, Please find my Complaint against Discover and XXXX XXXX XXXX, XXXX. for violation of CFPB rules ; FDCPA, FCRA, RICO, Hobbs Act and other crimes. 
In XX/XX/2019 I replied to an offer to purchase a credit card loan with Discover. I sent my application to the address provided in the application and was confident that I received a credit card loan, account ending XXXX. 
I later learned that my transaction was not a loan but a payment to me for performing financial services, to wit - issue a security called Promissory Note which was used by undisclosed to me XXXX Bank in their speculative securitization scheme which would not exist without my participation as an Issuer and an Investor in this scheme. 
I also learned that that the process of what XXXX XXXX banks call Securitization is actually a securities scheme that extinguishes the debt account entirely. It is a business scheme that bars the counterparty customer like myself from any profit or revenue and requires them to accept, without knowledge or consent, concealed risks and losses that often do not appear until years later. 
XXXX XXXX convinced customers, including myself, that the substance of securitization meant the creation of a loan transaction and then the sale of that loan transaction and the financial expectancy of payment to multiple investors. But the securities brokerage firms never intended any of that. 
They had to be convincing or else the plan wouldnt work. The real plan called for selling the Loan over and over again by giving attributes of the transaction different names. So in the end, if they paid a commission to me {$2000.00} to me masqueraded as credit card loan, they would sell it for at least {$250000.00}. 
It is by suppressing the truth about the transactions that the XXXX XXXX investment banks and securities brokers make all their money. 

The payment to me under such circumstances was not a loan. It was partial compensation for unknowingly providing valuable financial services, without my knowledge and consent ; and accepting concealed risks and losses. To add insult to injury, I was required to pay back the partial compensation payment I received only because I was fraudulently induced to think I was entering into a loan transaction. But at the end of the day, there is no lender, no creditor, and no loan account. 

I got cheated out of compensation that I was entitled to receive but could not bargain for because I knew nothing about the true nature of the transaction. Neither the broker nor any investor maintains a loan account receivable. I many times asked Discover if my transaction was a subject to securitization ; demanded to validate this Debt under FDCPA ; and provide me a copy of my signed promise to pay Discover, as recorded on Discovers general lendger ( required by GAAP ) and a copy of this ledger, along with the name of the accountant or bookkeeper who is responsible for this ledger. 

Discover never responded to my demands for disclosures and sent me a robo-signed letter from someones XXXX company employee XXXX XXXX. ( likely a fictitious name ) who told me that Discover sent me Form 1099C ( which I never received from them ) since I purportedly owe Discover {$1600.00}, which is a lie. Only legal owner of alleged debt can file any documents with IRS claiming unpaid debt. Discover never provided ANY proof that they are owners of my alleged debt and continue to stonewall all my questions about existence and ownership of my alleged debt supported by documents. 

Moreover, someone acting under name of Discover hired XXXX XXXX XXXX XXXX. lawyers to file a frivolous collection case ( which is currently sitting in the XXXX XXXX XXXX ) while neither Discover or XXXX XXXX XXXX never validated this alleged debt to me. All that Discover and XXXX & XXXX sent to me are billing statements printed by some undisclosed to me XXXX company from someone's data center. Billing statements are not evidence of anyone 's debt, specially when they are coming from undisclosed sources.

Company response to consumer: Closed with explanation