Consumer complaint received 2023-08-07
Company: DISCOVER BANK
State: DC
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
On XX/XX/XXXX, Complaint # XXXX was submitted to the CFPB for Discover Cards reporting of derogatory, inaccurate information on my Credit Report. 

On XX/XX/XXXX, Discover Card responded to the complaint and advised that they were investigating the complaint, and would provide a detailed responses within 60 days. 

On XX/XX/XXXX, the Executive Office of Customer Advocacy at Discover ( hereinafter Discover ) provided a response to the complaint. Discover stated that complainants concerns were reviewed and addressed on XX/XX/XXXX under Complaint # XXXX. Discover further advised that complainant had not provided any additional information since that time. Nonetheless, Discover states the following : - On XX/XX/XXXX, the account at issue was opened through an application and a {$800.00} security deposit ; - Discover states that Complainant accepted the Cardmember Agreement, which states, in part, that if Complainant is in default under the agreement or the account is closed for any reason, complainant authorizes Discover o withdraw all or any portion of the Funds from the security deposit account and apply them to reduce outstanding obligations. 

- On XX/XX/XXXX, the account at issue was placed on hold to verify additional information for [ the ] account. '' - On XX/XX/XXXX, Discover completed their review and a business decision was made to close [ the ] account. 

- On XX/XX/XXXX, {$740.00} of [ the ] security deposit was applied to the account balance and again on XX/XX/XXXX, additional monies, totaling {$41.00} was also applied to the account balance and deducted from the security deposit. 

- Discover also stated that a refund was due in the amount of {$17.00} and that the account balance had a remaining {$20.00} balance. 

Complainant does not dispute that she accepted the terms of the agreement. While Complainant does dispute the balance at the time the account was closed, this was not the subject of the complaint. Complaint XXXX was submitted to address the derogatory and accurate information that Discover continues to report on Complainants XXXX, XXXX, and XXXX credit reports. Specifically, Discover is reporting two 30 days late payments in XX/XX/XXXX and XX/XX/XXXX ( see attached portion of complainants XXXX report ). 

Multiple attempts have been made to resolve Complainants concerns with the account at issue. To date, Discover has failed to acknowledge and/or correct the inaccurate information being reported to all three credit bureaus in blatant violation of the Fair Credit Reporting Act. Section 623 of the FCRA and Regulation V provides that Discover, a furnisher, must not furnish inaccurate consumer information to a CRA, and that Discover has an obligation to investigate a consumers dispute that the furnished information is inaccurate or incomplete. 

A review of the response provided by Discover on XX/XX/XXXX makes absolutely no reference to Complainants concerns regarding inaccurate and derogatory information. Rather Discover admits that the account at issue was closed in XX/XX/XXXX, evidence which supports Complainants Complaint that Discovers reporting of late payments in XX/XX/XXXX and XX/XX/XXXX are not possible and are inaccurate. Indeed, XXXX had no additional obligation to make timely payments and the account did not have an outstanding balance. Discover also admits that as of XX/XX/XXXX, after Discover continued to deduct funds from the accounts security deposit three months after the account was abruptly closed, Complainant did not owe a balance on the account at issue. In fact, Discover admits that a {$20.00} credit remains on the account at issue. Based on the facts and information provided by Discover, XXXX could not possibly have been late on any payments after XX/XX/XXXX and therefore Discovers continued reporting of two late payments in XX/XX/XXXX and XX/XX/XXXX are not accurate and must be removed. Discovers ongoing reporting of derogatory information that has demonstrably false is a violation of Section 623 of the FCRA. 

Therefore, Complainant is submitting this complaint once again and demanding that Discover correct the inaccurate information. If Discover continues to report the inaccurate, derogatory, and factually impossible information to the credit bureaus, Complainant will have no other choose but to file a lawsuit seeking damages sustained as a result of Discover falsely reporting late payments on my credit report.

Company response to consumer: Closed with explanation