Consumer complaint received 2021-02-27
Company: DISCOVER BANK
State: NY
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Other transaction problem

Complaint:
Dear CFPB : I used my Discover card to make a payment to a property manager to cover the rent for a friend who was subletting an apartment. One XX/XX/2020, I paid {$2000.00} to XXXX XXXX XXXX  using the logon information given to my friend by the current leasee of the apartment. I did not share my credit card information with anyone else except directly with XXXX web site as required to make the payment. I never gave XXXX  permission to keep my credit card information in their system. I indicated that I was making just one payment for {$2000.00} and only that payment. Apparently XXXX kept my card information and someone used my card to make two additional charges of {$5000.00} on XXXX and another {$5900.00} on XX/XX/XXXX. 

I discovered this on XX/XX/XXXX and called XXXX to alert them of. these two {$5000.00} charges that i never authorized. They attempted to reverse the transactions but said that they could not. They assured me that if I call Discover that they should be able to reverse the charges. XXXX also removed all of my credit card information from their system immediately. I did not intend nor was I aware that my card information had been saved in their system. 

Apparently, the current lessee admitted he logged on to the XXXX site ( the site that the property manager asks tenants to use to pay their rent ) to confirm that the payment was made. The lessee claims that he made an additional {$5000.00} payment using my credit card information by accident. He logged on the following day, XX/XX/XXXX and made another payment to his account with my credit card and has no explanation how or why that happened. I had my Discover card in my possession the whole time and never lost control of my card. I have in writing that the leaser made the two additional payments. The leaser never provided the signed sublet agreement and decided to cancel the whole transaction. he assured me i would get the full {$12000.00} plus fees returned. 

I called Discover and spoke to the fraud protection department and explained the situation and reported the unauthorized charges as fraud. They issued a temporary credit for the {$10000.00} charges ( plus the service fees that were charged by XXXX ) and began an investigation.. A few days later I discovered that my friend was never given the signed sublease agreement which was promised to be given to him as soon as the {$2000.00} payment had been made, I then called Discover and. told them to add the {$2000.00} payment to the charges that were. being disputed and reported as fraudulent as the agreed upon sublease was never delivered as agreed it would be after the payment had been made. 

I called XXXX XXXX XXXX  to discuss with them the fraudulent nature of the payments that were made. Despite numerous calls to. their main number I was only able to get voicemail. I left the details of what happened on several voicemails. I never got a call back from XXXX. 

I began the process of filing a police report and communicated with the chief of the Larceny division of the NYPD, XXXX XXXX, who put in touch with one of his detectives. His detective spoke by phone and i. gave him a summary of what occurred. He was scheduled to meet me that day so he could take my report. This was around XX/XX/XXXX, and the protests had begun after the death of XXXX XXXX. The detective was not able to meet. me. at the arranged time and I did not reschedule, as it seemed like the NYPD had their hands full dealing with the protests. 

In addition to reporting these charges to Discover fraud protection and having the three charges disputed I also cancelled my Discover account and opened a new account with a new card and new account number. 

I received letters later from Discover indicating that they never got verification from the. merchant ( XXXX and /or XXXX XXXX ) and that my temporary credits would become permanent and the case closed. 

Everything was apparently settled until mid XXXX when i noticed that my balance to Discover had increased by over {$20000.00} with no explanation from Discover. I called and was told that the merchant XXXX had finally responded to the written request Discover had sent them asking if the charges were legitimate or not. The response indicated that they were legitimate. Discover had no further information about the charges, what they were for or why they were legitimate despite my clearly indicating they were not. They sent me nothing in writing to demonstrate the legitimacy of these charges. When I referenced their fraud protection program that the customer is responsible for {$0.00} for any unauthorized charges, they claim that because I provided the credit card information that was necessary to make the initial payment of {$2000.00} to XXXX, that any subsequent charges were considered a billing error and not a fraudulent charge. This seemed preposterous and not in accordance with their fraud protection policy. The additional charges of {$5000.00} and {$5000.00} were absolutely not authorized by me and in no way reflect a billing error. They could not explain why this occurred after I had already been told the credits were permanent ( over 90 days after the charges were made ). They were reminded that the law limits the customers responsibility as long as the customer has the physical card in their possession when the disputed charges were made ( which was the case ). They were not able to adequately explain why the charges put back on my card were in excess of {$20000.00} when the disputed charges were only {$12000.00}. They offered to submit an appeal which would take 30 to 60 days, This discussion took place around XX/XX/XXXX. Discover has left all the charges o my account ( currently at {$25000.00} ) and has not communicated with me at all about the repeal. Several calls I made to get an update were not returned, no one was available to speak with me at the times I called. 

This situation has negatively impacted my credit score and my ability to refinance my mortgage. I submitted in writing another request to Discover about a week ago to update me about the appeal but they have not responded. 

Discover said there is nothing they can do. They claim that XXXX  verified the charges. XXXX wrote me that the charges were fraud. 

I believe XXXX  is at fault for keeping my credit card information in their system without my permission and allowing it to be used for additional chargess that I did not authorize. 

I believe that XXXX  XXXX XXXX was the beneficiary of my money and they are in possession of stolen funds totallin {$12000.00}. I notified both XXXX and XXXX that the charges were not authorized and should be returned. XXXX  would not even respond to my many calls and letter. XXXX admitted in a letter to me that it was fraud and indicated that they notified XXXX. i demand XXXX return my {$12000.00} and XXXX return the associated transaction fees immediately or be prosecuted to the full extent of the law. 

Thank you very much. 

XXXX XXXX XXXX, XXXX. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NY XXXX XXXX

Company response to consumer: Closed with monetary relief