Consumer complaint received 2021-09-24
Company: DISCOVER BANK
State: FL
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
When I signed the original promissory note ( which by law is the negotiable instrument and is considered legal tender after the Bankruptcy Act of 1933 was enacted ) for Discover to complete the credit sale, the consumer credit transaction should have been paid in full. According to 16 CFR 433.1, the creditor and the seller got into a business arrangement and gave me a purchase money loan in exchange for a finance charge. According to CFR 433.2, In connection with any sale or lease of goods or services to consumers, in or affecting commerce as commerce is defined in the Federal Trade Commission Act, it is an unfair or deceptive act or practice within the meaning of section 5 of that Act for a seller, directly or indirectly, to : ( a ) Take or receive a consumer credit contract which fails to contain the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. 

According to 16 CFR 433.3, every seller who has taken or received an open end consumer credit contract after November 1st, 1977 are not exempt from a consumer asserting his rights against any holder of the contract all legally sufficient claims and defenses which the consumer could assert against the seller of goods or services purchased pursuant to the contract. So therefore, I am asserting my rights against DISCOVER for goods purchased.

According to 16 CFR 444.3, in connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is a deceptive act or practice within the meaning of section 5 of that Act for a lender or retail installment seller, directly or indirectly, to misrepresent the nature or extent of cosigner liability to any person. 

It is also considered an unfair act or practice within the meaning of section 5 of that Act for a lender or retail installment seller, directly or indirectly, to obligate a cosigner unless the cosigner is informed prior to becoming obligated, which in the case of open end credit shall mean prior to the time that the agreement creating the cosigner 's liability for future charges is executed, of the nature of his or her liability as cosigner. I am competent of understanding I am the cosigner for my principal obligor. I also never received the " Notice to Cosigner '' before becoming obligated.

This was also unauthorized use pursuant to 15 USC1602 ( p ). I received no benefit of my credit card being used by DISCOVER.

DISCOVER committed aggravated identity theft under Title 18 U.S. Code 1028A on four separate occasions as DISCOVER BANK has knowingly used without lawful authority, a means of my identification in order to compromise my bank account instead of directly communicating with me first about the confusion in how to correctly apply my payment for four separate times. Each case of aggravated identity theft under Title 18 U.S. Code 3571, is a felony and a fine in the amount {$500000.00}.

DISCOVER BANK created a false and deceptive form under 15 U.S. Code 1692j. The delivery of a false and deceptive form constitutes mail fraud pursuant to 18 U.S. Code 1341. Pursuant to 18 U.S. Code 1341, whoever, having devised or intending to devise any scheme or artifice to defraud for obtaining money or property by means of false or fraudulent representations, obligation, security for the purpose of executing such scheme or artifice or attempting so to do, places in any POST OFFICE for mail matter to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing that affects a financial institution ( in this matter XXXX XXXX ), such person shall be fined not more than {>= $1,000,000} or imprisoned not more than 30 years, or both. 

I made payment to DISCOVER by way of an qualified indorsement with the words " without recourse '' on the negotiable instrument that was sent to meant to me via mail. According to Uniform Commercial Code 3-415, if I indorse with the words " without recourse '' all liability is off of me. Also, if a notice of dishonor is not given to me, the liability is discharged.

Company response to consumer: Closed with explanation