Consumer complaint received 2023-07-16
Company: DISCOVER BANK
State: NV
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Getting a credit card
Sub-issue: Delay in processing application

Complaint:
On XX/XX/XXXX i was solicited to apply for a credit card and i filled out the application promissory note and was approved for a line of credit {$1000.00} credit card. 

On XX/XX/XXXX i received an email stating i need to fill for SSA-89 and also send a copy of my social security card or my account will be closed within 14 days. For XXXX XXXX XXXX XXXX to run verification on my identity. 

I responded and stated i did not consent to giving my details to any third party especially XXXX as they are in the business of selling information and also had a security breach in XXXX according to their sec filings XXXX form, where XXXX XXXX peoples information and identities was breached and identities stolen. Also I have no disclosures of what they will do with my information or a copy of my social security card.

14 days has passed an my account has not been closed as discover said it would if i did not fill out the requested forms. I refused to consent to filling SSA-89 or sending a copy of my social security card.

The SS8-89 is a voluntary form. Pursuant to 4 CFR83.9 ( b ) individuals asked to voluntarily provide their SSN shall suffer no penalty or denial of benefits for refusing to provide it. If Discover knows of any such law that states otherwise they must provide it. 

I reviewed DISCOVER CARD XXXX document filed with the Securities and Exchange Commission and could not find anywhere where it stated that they ask customers to fill out the requested documents or request them to provide copies to be handed to third parties. 

On page 32 on Discover financial XXXX form Commission File Number XXXX DISCOVER FINANCIAL SERVICES it stated the following : If we are unable to securitize our receivables, it may have a material adverse effect on our liquidity, cost of funds and overall financial condition. 
We use the securitization of credit card receivables, which involves the transfer of receivables to a trust and the issuance by the trust of beneficial interests to third-party investors, as a significant source of funding as well as for contingent liquidity. Our average level of credit card securitized borrowings from third parties was {$15.00} XXXX and {$15.00} XXXX for the years ended XX/XX/XXXX and XXXX, respectively. Although the securitization market for credit cards has been re-established since the financial crisis, there can be no assurance that there will not be future disruptions in the market. Our ability to raise funding through the securitization market also depends, in part, on the credit ratings of the securities we issue from our securitization trusts. If we are not able to satisfy rating agency requirements to maintain the ratings of asset-backed securities issued by our trusts, it could limit our ability to access the securitization markets. Additional factors affecting the extent to which we may securitize our credit card receivables in the future include the overall credit quality of our receivables, the costs of securitizing our receivables, the demand for credit card asset-backed securities, and the legal, regulatory, accounting and tax requirements governing securitization transactions and asset-backed securities, generally. For example, in XX/XX/XXXX, the XXXX XXXX on Banking Supervision published a revised securitization framework for banks calculation of credit risk capital requirements for exposures to securitization transactions. These changes, which, according to the XXXX publication, must be implemented by the beginning of XXXX, could negatively impact the pricing and/or volume of our asset-backed securities issuances. A prolonged inability to securitize our credit card receivables, or an increase in the costs of such issuances, may have a material adverse effect on our liquidity, cost of funds and overall financial condition. 

https : //www.sec.govXXXX I looked through the Discover card agreement and terms and conditions and looked to find the disclosures of what was stated in their sec filings. 

I was unable to find it and i wrote discover a letter asking for the section where they gave me full disclosure of what happens with my credit card application and its involvement with XXXX parties and securitization. 

Discover failed to respond i have included a copy of the letter i sent. 

Discover is committing securities fraud by not informing its card members its credit card securitization practices making money off our backs without giving full disclosure of the facts and lying to their investors. 

I have told Discover if they did not respond within the time frame i would file a complaint with CFPB FTC and will be a whistleblower to the Securities and Exchange Commission and have them investigate this deception against us unsuspecting consumers who extend our credit in good faith to Discover card who commits unfair and deceptive practices willfully relying on our ignorance.

Company response to consumer: Closed with explanation