Consumer complaint received 2022-10-04
Company: DISCOVER BANK
State: VA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
XX/XX/XXXX, XXXX a letter from Discover Bank to XXXX XXXX thanking him for being a Discover Bank customer and confirming an address change on his account. He immediately contacted them and noted that he did not open any accounts with Discover Bank. We put a fraud alert on his account and they froze that account. Also received a notice that someone attempted to open a personal loan in his name with Discover Bank. He reported that as fraud as well. Discover Bank case number for our fraud claim is XXXX XX/XX/XXXX, XXXXPut a credit freeze on all three credit bureaus. Put fraud alerts in place. Was informed by Discover Bank that nothing was done with those accounts. 

XX/XX/XXXX, XXXXAlerted XXXX XXXX our bank account of the fraudulent accounts being opened in our name with another bank. At the time, we didnt see any odd transactions on our checking accounts with them. 

XX/XX/XXXX, XXXXTwo transfers for {$10000.00} each were made from XXXX and XXXX XXXX XXXX XXXX XXXX Checking account to two different Discover Bank accounts. ( Because we went away on vacation, these were not discovered until XXXX when we balanced our checking accounts. ) XX/XX/XXXX, XXXXReceived a letter from Discover Bank noting that accounts ending in XXXX, XXXX, and XXXX were opened without XXXX knowledge and these accounts would be closed. 

XX/XX/XXXX, XXXX to balance XXXX XXXX checking account for XXXX and XXXX. Discover the XXXX fraudulent $ XXXX transfers. Contact Discover Bank and contact XXXX XXXX. 

XX/XX/XXXXXXXX XXXXSigned and mailed to Discover Bank a Written Statement Identity Theft that lists the account numbers that were fraudulent. XXXX XXXX begins an investigation into our fraud claims. 

XX/XX/XXXX, XXXXSubmitted an Identity Theft Report to the FTC. Report number is XXXX. 

XX/XX/XXXX, XXXX XXXX provisionally transfers {$20000.00} + interest back into our checking account while the investigation proceeds. 

XX/XX/XXXX, XXXXSigned and sent a claim to XXXX XXXX Bank that stated the XXXX {$10000.00} transactions were not authorized. Case opened with claims investigator XXXX XXXX XXXX number is XXXX. 

XX/XX/XXXX, XXXXMet with XXXX XXXX bank at XXXX XXXX XXXX to open a new checking account since this information was stolen. Transferred money from XXXX Checking to Prime Checking. 

XX/XX/XXXX, XXXXContacted all credit card companies, utilities, XXXX, and mortgage to change e-bill payments to new checking account. 

XX/XX/XXXX, XXXXReceive notice from XXXX XXXX that they denied our fraud claim and that their investigation found these transactions were authorized. They are taking back the {$20000.00} provisionally given to us. Contacted Discover Bank, they are saying that XXXX XXXX needs to prove that it was fraud and there is nothing they can do until our bank proves it wasnt authorized. 

XX/XX/XXXX, XXXXSpoke to a claims manager at XXXX XXXX, they claim that Discover Bank will not release our funds back to our accounts because XXXX XXXX is still their client and those accounts are legitimate even though we had flagged them as fraud. Submitted another ID Theft Report to the FTC with the correct account numbers from Discover Bank, since we had used the transfer numbers previously. 

Discover Bank suggested we file a police report. 

XX/XX/XXXX, XXXXFiled a police report with XXXX XXXX Police XXXX system. 

XX/XX/XXXX, XXXXSpoke with Discover Bank. They said that fraud alerts had been put on the accounts. They gave us a claim number along with XXXX account numbers. We called XXXX XXXX and spoke to an agent who promised to expedite our issue and took all the information we gave them from XXXX XXXX. New claim number with XXXX XXXX assigned : XXXX. 

XX/XX/XXXX, XXXX XXXX from the Department XXXX XXXX contacts XXXX XXXX. We had filed a complaint with the XXXX because we were concerned that his information may have been stolen when he sent his passport in for renewal. It might be the case and they have opened an investigation into this. 

XX/XX/XXXX, XXXXReceived another letter from Discover Bank stating that there was an open investigation into the XXXX accounts that they had already stated were fraudulent. I signed another Written Statement of Identity theft and sent overnight this signed form along with documentation that Im including in this report : FTC identity theft claim, police report, and Discover Bank letters stating this was fraud. 

XX/XX/XXXX, XXXXSpoke with Discover Bank and they told us that XXXX XXXX needed to ask for a recall of funds. Spoke with XXXX XXXX Bank and they replied that they asked for the recall of funds, however, Discover Bank denied the recall, stating that the transaction was authorized by XXXX XXXX even though the accounts were flagged as fraudulent. XXXX XXXX is sending us evidence from their end of how this transaction was authorized. 

Discover Bank will not discuss evidence they have regarding the account authorization with us since they are not our accounts even though they are now holding our {$20000.00} and will not return the money nor will they give us proof of our own alleged authorization. Asked XXXX XXXX for documentation that XXXX XXXX approved the transaction. XXXX XXXX is sending the documentation they have which could take up to 30 days. 

Discover Bank refuses to send us their proof that they claim shows XXXX XXXX authorized the transfer of money from his legitimate checking account at XXXX XXXX to fraudulent ones at Discover Bank. Accounts that Discover Bank has admitted via a letter were fraudulent. Accounts that XXXX XXXX had signed a Written Statement of Identity Theft stating that those accounts were fraudulent and any transactions surrounding those accounts were fraudulent. 

Filed a complaint against Discover Bank with the FDIC : XXXX XXXX. 

We have done everything in our power to get our money back. We need help.

Company response to consumer: Closed with explanation