Consumer complaint received 2023-11-30
Company: DISCOVER BANK
State: GA
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Getting a credit card
Sub-issue: Application denied

Complaint:
Subject : Urgent Matter Application, Forensic Audit and Securities Trading Dear Discover Financial Services and Discover Bank, I hope this letter reaches you in good health. I am writing to bring to your attention a matter of significant concern regarding the handling of applications submitted to Discover Bank, which have been converted into securities and subsequently traded on the secondary market. It has come to my attention that my applications, in particular, have been utilized for this purpose, and I believe there are critical issues that require immediate attention and resolution. 

My applications were submitted to Discover Bank under the understanding that they would be processed in accordance with the terms outlined in our binding agreement, and that in return for the investment, I would receive the agreed-upon products and services. However, it has come to my knowledge that these applications have been transformed into securities for trading on the secondary market without my explicit consent. 
I would like to draw your attention to the following points : Security Trading and Capital Generation : The conversion of applications into securities for trading on the secondary market is a practice that, according to my understanding, was not disclosed in our initial agreement. This has raised concerns about the potential misuse of my personal information and the financial benefits derived from these securities trading activities. 
Forensic Audit : I have considered a forensic audit to expose XXXX  numbers associated with the securities generated from my applications. This audit aims to determine the amount of money these securities have generated and whether this aligns with the terms of our binding agreement. 
Material Evidence : As outlined in Discover Financial Services and Discover Bank 's XXXX, XXXX, Prospectus, and Indenture Agreement Form, these documents serve as material evidence of the company 's objectives to attract investors and generate capital through various means, including the trading of securities. 
Tort Actions and Discrimination : The attempt to use non-public personal information without my explicit written consent for the purpose of discrimination and fraud is deeply troubling. These actions have caused harm to my personal well-being, reputation, and have resulted in the denial of my rights and titles to monthly bonds, interest payments, and proceeds. 
Upon a thorough review of the XXXX form which is accessible through the Securities Exchange Commission ( SEC ) website, it has become apparent that there are areas where both the parent company and its subsidiary may be at risk of noncompliance and legal ramifications. I believe that it is imperative that this matter be promptly presented to the Risk Committee and the Board of Directors to initiate a comprehensive review and take necessary actions to prevent further damage. 
The specific points of concern include : Noncompliance Risks : The XXXX form indicates potential areas of noncompliance that may expose both Discover Financial Services and Discover Bank to legal and regulatory risks. 
Legal Implications : Failure to address the identified noncompliance issues could result in legal implications, fines, and damage to the reputation of both entities. It is crucial to assess the severity of these risks and take corrective measures immediately. 
Responsibility of the Risk Committee : Given the nature of the risks outlined in the XXXX form, it is the responsibility of the Risk Committee to conduct a thorough analysis, assess the potential impact, and formulate strategies to mitigate these risks effectively. 
Board of Directors Oversight : The Board of Directors should be informed promptly about these compliance and legal risks to ensure transparency and to enable them to make informed decisions that safeguard the interests of the company and its stakeholders. 
Preventative Measures : Immediate action is necessary to implement preventative measures that align with regulatory requirements and ethical business practices. This will help in safeguarding the company 's integrity and protecting against further legal and compliance risks. 
I strongly recommend convening a special meeting of the Risk Committee and the Board of Directors to address these concerns. Timely and decisive action is crucial to protect the best interests of Discover Financial Services and Discover Bank. 

If the proper party is unwilling to provide a remedy for these actions within 21 business days from the receipt of this letter, I intend to use the findings from the forensic audit, along with the aforementioned forms and exhibits, as evidence to recollect all proceeds generated from the security investments. 

On or before XX/XX/2023, there will be a letter sent by registered mail to both the Parent Company and its Subsidiary ( Discover Bank ). This parcel will contain a medallion-stamped or notarized letter reiterating these concerns. I implore you to treat this matter with the urgency and seriousness it deserves to avoid further legal action. 

I look forward to a prompt and amicable resolution to this issue. 

Sincerely, XXXX XXXX XXXX | Agent For XXXX XXXX | Principal Email : XXXX Phone : ( XXXX ) XXXX

Company response to consumer: Closed with explanation