Consumer complaint received 2022-09-06
Company: DISCOVER BANK
State: CT
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Trouble using your card
Sub-issue: Credit card company won't increase or decrease your credit limit

Complaint:
In reference to previous CFPB complaint ID # : XXXX submitted XX/XX/2022 : Discover has violated my rights and failed to address these violations or lawfully remedy the issue to my satisfaction. On XX/XX/2022, Discover states in their response ( attached ) to this complaint that Your Cardmember Agreement authorizes that we may periodically review your credit and income records and that we may increase or decrease your credit line. 

A contract is an agreement between private parties creating mutual obligations enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are : " mutual assent, expressed by a valid offer and acceptance ; adequate consideration ; capacity ; and legality. I did not knowingly agree to the terms of this alleged agreement as they were not clear and conspicuous ( lack of mutual assent ), adequate consideration was not provided, and I did not have the capacity to understand the alleged agreement. As a result, Discover did not truly possess actual, implied, or apparent authority for such use and I received no benefit in the reduction of my credit line. According to 15 USC 1602 ( p ), this is known as unauthorized use and is a violation of federal law by Discover. This is also a breach of fiduciary duty by Discover. 

Discover states in their reply that We are firmly committed to complying with the Equal Credit Opportunity Act as well as all other applicable State and Federal laws and regulations. As such, it is our practice to consistently treat all customers equitably. However, this is clearly not the case. Corporate policies and procedures do not supersede XXXX XXXX. 

The decision to lower my limit was based on the following information in a document dated XX/XX/2022 ( attached ) : reasons : Bureau reports unsecured loan balance Number of revolving accounts as reported by agency Bureau reports increase bankcard balances On the same day, a letter was mailed to you confirming this change. As explained in this letter, this decision was based in part on information we obtained from XXXX, XXXX, and XXXX. This action is a direct violation of 12 CFR 1002.4 ( a ), 12 CFR 1002.7 ( a ), and 12 CFR 1026.12 ( b ). Discover has directly admitted to discriminating against me on a prohibited basis, utilizing information from illicitly obtained consumer reports. 

This is also an egregious violation of the XXXX XXXX XXXX, 15 USC 6802 ( 1 ). As a nonaffiliated third party, Discover obtained consumer reports from several consumer reporting agency without express written consent, permission, or knowledge. My nonpublic personal information was disclosed by consumer reporting agencies ( XXXX, XXXX, and XXXX ) to a nonaffiliated third party ( Discover ) without clear and conspicuous disclosure. I was not given the opportunity to direct that my information not be disclosed in this. I was not given an explanation of how to exercise my nondisclosure option. 

In addition to discrimination on a prohibited basis, unauthorized use, and unlawful access to my consumer report, I still remain harmed financially and emotionally by Discover from previous violations of federal law noted in CFPB complaint ID # XXXX which include violations of 15 USC 1602 ( f ), 15 USC 1602 ( p ), 15 USC 1691 ( a ) ( 3 ). Multiple federal laws have been broken, my rights violated, and I have suffered financial damage, mental anguish, emotional distress. I was unable to provide for my family, make necessary household repairs/improvements, or invest in my business during the XXXX pandemic when I needed financial assistance the most.

Company response to consumer: Closed with explanation