Consumer complaint received 2018-04-29
Company: DISCOVER BANK
State: NE
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
In XX/XX/XXXX consumer received an IRS Cancellation of Debt letter from Discover Bank Card, XXXX. XXXX XXXX, XXXX XXXX, OH XXXX. Consumer was confused and was of the belief Discover Bank Card was aware of consumer 's insolvency IRS status ( XX/XX/XXXX ) regarding the closed Discover Bank card ( after written notification in XX/XX/XXXX ) sent XX/XX/XXXX. In the State of Nebraska the statute of limitations [ Chapter 25 Section 207 ] regarding debt on credit cards is 4 years. All debts are non-collectible after 10-years ( unless re-aged ) in the State of Nebraska. There has been no activity on the Discover Bank credit card ( ending in XXXX ) since XX/XX/XXXX. It is suspect that after never receiving correspondence from Discover Bank Card all of a sudden at the end of XX/XX/XXXX; ( and during Tax season ) here comes an IRS Cancellation of Debt form from Discover Bank Card. There has been no written correspondence from Discover Bank card regarding the status of the card since XX/XX/XXXX. The fact that Discover Bank Card was sending an IRS Cancellation of Debt form in the year of XX/XX/XXXX; was confusing to consumer. Therefore, consumer felt it necessary to send a copy of an IRS Insolvency worksheet ( completed and dated XX/XX/XXXX ) verifying consumer 's insolvency status regarding all of consumer 's closed credit card accounts dating back to XX/XX/XXXX, which included the Discover Bank Card. Consumer attached a letter ( along with other documents ) to Discover Bank Card and sent it via certified Mail with return receipt ( XXXX XXXX XXXX XXXX XXXX ) ; and attached a copy of the IRS Insolvency worksheet regarding Cancellation of Debts dated XX/XX/XXXX. Consumer included a copy of the IRS Notification letter ( XXXX - XXXX control number XXXX ) dated XX/XX/XXXX ; as verification that consumer was in compliance with the IRS inquiry regarding IRS insolvency, and had a satisfactory closing of the case. In response to Consumers letter, Discover Bank Card took it upon itself to " willfully '' view the verification as a " dispute '' and deliberately violate the Fair Credit Reporting Act ( " FCRA '' ) 15 U.S.C. Section 1681 ; by sending consumer a letter ( dated XX/XX/XXXX ) clarifying that Discover Bank Card had inappropriately notified all consumer reporting agencies that consumer was disputing the credit card account ending in XXXX ; and in order to do an investigation Discover Bank card sent forms requesting consumer to update information regarding a " current '' phone number ( so they could call between the hours of XXXX to XXXX collection harassment ) ; signature verification and photocopies of documents containing consumers signature for comparison. AT NO TIME, did consumer dispute or report anything regarding the Discover Bank Card ending in XXXX. Consumer sent written verification ( XX/XX/XXXX ) of the IRS Insolvency status documented with the IRS in XXXX as a courtesy to Discover Bank Card. AT NO TIME, did consumer request Discover Bank notify any consumer reporting agencies of a " dispute '' regarding a " time-barred '' Discover Bank Card ending in XXXX. AT NO TIME, is consumer providing written signatures to Discover Bank Card so those signatures can be transposed to other documents consumer has not given permission to do so. AT NO TIME, did consumer claim or report the Discover Bank card ( ending in XXXX ) stolen, misused or tampered with. AT NO TIME, is consumer playing the game of " re-aging '' a debt that has been IRS cancelled, " time-barred '' and no longer collectible after 10-years under Nebraska statute of limitations law. AT NO TIME, does consumer believe consumer owes a Discover Bank Card debt. Consumer resents the unscrupulous attempt by Discover Bank card to trick consumer into " re-aging '' a time-barred debt the IRS has determined is cancelled under the IRS insolvency doctrine. The fact that Discover Bank notified all consumer reporting agencies of a false dispute regarding a " time-barred '' debt has created undue hardship and harms consumers credit reports which now subjects consumer to collection practices that cause emotional duress ; and puts consumer 's credit rating in jeopardy of negative standing. Consumer has complied and worked hard to get consumer 's credit rating back to good standing. Consumer demands Discover Bank Card notify the consumer reporting agencies of their discrepancy and attempt to reverse the damages theyve created or be subjected to a federal lawsuit filed with the Federal Trade Commission ( FTC ) ( and the state of Nebraska ) regarding violation of the Fair Credit Reporting Act ( FCRA ) ; and do so expediently. Consumer has attached copies of the XX/XX/XXXX letter to Discover Bank card, U S tracking receipt that verifies Discover Bank received the letter, Nebraska Statute of Limitations ( SOL Chapter 25 Section 207 ) regarding credit card debt collection and IRS Cancellation of Debt form ( scroll to Page 8 of the IRS booklet ) verifying insolvency of consumer for the year XX/XX/XXXX. Consumer will pursue all legal remedies in this matter if this matter is not resolved within thirty ( 30 ) days from the date of this formal complaint with the CFPB. Consumer appreciates this venue of mediation and resolution provided by the CFPB. The CFPB has been a wonderful avenue of protection for the general public. Consumer thanks you for all you do.

Company response to consumer: Closed with non-monetary relief