Consumer complaint received 2018-01-30
Company: DISCOVER BANK
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I was the primary account holder on a joint account opened with DISCOVER in XX/XX/XXXX with a credit limit of {$3000.00}. The secondary holder was my father who cosigned the application after the lender required I provide a cosigner because I had never had a revolving credit card before.. from the opening of the account until XX/XX/XXXX all payments were made on time. XX/XX/XXXX I was the victim of identity theft and had my entire bank account emptied so my credit union canceled my bank card and reissued another. when the automatic payment collection by Discover attempted to collect it was returned unpaid. I fell behind in all my bills after having to cover two different bounced checks that were returned to my bank unpaid from two different individuals that cost me in excess of {$3500.00} and overdrawn my bank account. because I live on a fixed income and don't work due to a XXXX I couldn't continue making the payments on the credit card. I called and asked that the account be frozen and that I had planned on paying the entire balance of in a couple months. In XX/XX/XXXX I initiated a one time electronic funds transfer from another bank using the XXXX XXXX XXXX XXXX of the XXXX XXXX XXXX. I provided the routing number and account number of the account to be debited for the payment on XX/XX/XXXX using a telephone request to the payments section of Discover. On XX/XX/XXXX Discover completed a required account verification information transfer to ensure the proper bank routing number and account number were being accepted by the receiving bank. after positive confirmation of both the routing number and account numbers matched. The request for funds transfer was made on XX/XX/XXXX after waiting the required 6 days as stipulated by the XXXX rules. The payment request was approved and the receiving bank paid the amount requested to discover for the entire outstanding open balance on the account. I received an emailed receipt from discover on XX/XX/XXXX stating payment was received on XX/XX/XXXX. I called Customer Service at Discover on XX/XX/XXXX and verified the payment was collected and the account balance on the credit card was reduced to XXXX. Discover stated that because I had made no payments since XX/XX/XXXX they were reducing my available credit limit on the account to {$500.00} and unfreezing it. I had to request a new card since I could no longer find my original. the next communications I received from discover from XX/XX/XXXX through XX/XX/XXXX all related to the new card I was being sent. On XX/XX/XXXX I received notice to log onto the Discover server and retrieve an important message. After resetting my account password and logging into the server I was provided a generic message stating the original payment posted on XX/XX/XXXX had been reversed and I now had to pay the total owed on the account again. 

The XXXX who processes the ACH 's for the XXXX XXXX XXXX has very stringent guide lines concerning reversals of funds transfers. only three reasons exist for the originator of the transfer to reverse a completed transaction 1. ) account numbers were mismatched, 2 ) duplicate transaction, 3 ) amount requested and amount received did not match and in all three cases the reversal must be done within 24 hours of the original transaction. Because I was the originator of the transfer and I didn't inform Discover to reverse the transaction even If it was reversed after the 24 hours which is not allowed. Any decision to in any way move the payment received from paying the balance on my account was done at the sole discretion of Discover in an attempt to defraud me and to have me pay a second time. This act is known as " Double Dipping '' Both myself and my father have never received any notices or letters concerning this issue and we have had the account closed and charged off by Discover who has reported on both of our credit reports that the amount charged of of over {$3500.00} was on an account with only a {$500.00} credit limit and not the original {$3000.00} so now all credit reporting bureau 's are calculating their credit scores on fraudulent data that shows a debt to credit ratio of more than 700 %. My fathers credit score has been reduced from a XXXX to XXXX due to this false reporting and mine has gone from XXXX to a XXXX. 

XXXX  XXXX XXXX XXXX

Company response to consumer: Closed with explanation