Consumer complaint received 2022-04-30
Company: DISCOVER BANK
State: TX
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
The said response to my original CFPB Complaint XXXX dated XX/XX/2022 by XXXX XXXX of the Executive Office of Customer Concerns . Is evidence of Discover Banks Deceptive Acts and Practices and violations of other federal laws. An act or practice may be found to be deceptive if there is a representation, omission, or practice that misleads or is likely to mislead the consumer. In my initial complaint I requested that Discover Bank produce a copy of the indorsement on the Loan Application and Promissory Note. XXXX XXXX willfully omitted the requested information. The disclosure of this omitted information is necessary to prevent the consumer from being misled. Discover Bank knew or should have known that the consumer needed the omitted information to evaluate the product or service. This is evidence of a deceptive omission and practice by XXXX XXXX and Discover Bank. The said indorsement would show evidence of the Loan Application and Promissory Note being deposited as an asset on Discover Banks books and the matching liability owed to me by Discover Bank would be the funds that were paid to the XXXX XXXX XXXX XXXX at XXXX on my behalf. 
Discover Bank is required to adhere to Generally Accepted Accounting Principles ( GAAP ). GAAP follows an accounting convention that lies at the heart of the double entry bookkeeping system called the Matching Principle. The principle works as follows : when Discover Bank accepts Promissory Notes from Consumers and deposits the Promissory Notes as assets, they must record the offsetting Liabilities that match the assets that it accepted from the Consumers. The liabilities represent the amount that Discover Bank owes the Consumer. In a fractional reserve banking system like the United States banking system Discover Bank would never loan borrowers money from any of their own deposits they would instead Extend Credit by means of a bookkeeping entry to the borrowers transaction account. This is evidence of Discover Bank offering to provide a product or service Private Student Loan that is not in fact available, which is a misleading deceptive practice.

The fact that Discover Bank advertises and markets to Consumers a Private Student Loan which is actually a product or service that is not in fact available because Banks do not actually pay out loans from the money they receive from deposits, this is a deceptive material representation ultimately causing substantial injury to consumers in the form of Monetary harm for the cost and fees paid by consumers as the result of the deceptive practice. This is also evidence of Discover Bank making material claims with the knowledge that they are false. 
Acts or practices that are unfair or deceptive within the meaning of section 5 of the FTC Act may also violate other federal or state statutes, such as consumer protection and fair lending laws. Discover Bank should be mindful of both possibilities. The following laws warrant particular attention in this regard. Pursuant to the Truth in Lending Act ( TILA ), creditors must clearly and conspicuously disclose the costs and terms of credit. The Truth in Savings Act ( TISA ) requires depository institutions to provide interest and fee disclosures for deposit accounts so that consumers can compare deposit products. TISA also provides that advertisements must not be misleading or inaccurate and must not misrepresent an institutions deposit contracts. 
Again, I reiterate the fact that I XXXX XXXX the consumer needs the omitted information ( Indorsement of the Loan Application and Promissory Note ) in order to evaluate the product or service. Failure to provide the Consumer this information is further evidence and confirmation of Discover Banks Deceptive Acts and Practices.

It is professional misconduct for a lawyer to : A. violate or attempt to violate the Rules of Professional Conduct, knowingly assist or induce another to do so, or do so through the acts of another ; B. commit a criminal act that reflects adversely on the lawyer 's honesty, trustworthiness or fitness as a lawyer in other respects ; C. engage in conduct involving dishonesty, fraud, deceit or misrepresentation ; D. engage in conduct that is prejudicial to the administration of justice ; E. state or imply an ability to influence improperly a government agency or official or to achieve results by means that violate the Rules of Professional Conduct or other law ; F. knowingly assist a judge or judicial officer in conduct that is a violation of applicable rules of judicial conduct or other law ; or G. engage in conduct that the lawyer knows or reasonably should know is harassment or discrimination on the basis of race, sex, religion, national origin, ethnicity, disability, age, sexual orientation, gender identity, marital status or socioeconomic status in conduct related to the practice of law. This paragraph does not limit the ability of a lawyer to accept, decline or withdraw from a representation in accordance with Rule 1.16. This paragraph does not preclude legitimate advice or advocacy consistent with these Rules.

The holding of any person to service or labor under the system known as peonage is abolished and forever prohibited in any Territory or State of the United States ; and all acts, laws, resolutions, orders, regulations, or usages of any Territory or State, which have heretofore established, maintained, or enforced, or by virtue of which any attempt shall hereafter be made to establish, maintain, or enforce, directly or indirectly, the voluntary or involuntary service or labor of any persons as peons, in liquidation of any debt or obligation, or otherwise, are declared null and void.

Company response to consumer: Closed with non-monetary relief