Consumer complaint received 2022-01-25
Company: DISCOVER BANK
State: GA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Improper use of your report
Sub-issue: Reporting company used your report improperly

Complaint:
To Whom It May Concern : I recently received a copy of my credit report, and I noticed an account on my consumer report that should not be on there. I demand the account be deleted from my consumer report. 
DISCOVER FIN SVCS LLC Credit Card with account # XXXX with a balance of {$1300.00}. 
You are furnishing inaccurate and incorrect information on my consumer report. The reporting of such information has caused severe damage to my reputation, general mode of living and my ability to obtain credit for personal or household uses. You and your inaccurate reporting have damaged my livelihood. 

The reporting of these account ( s ) is/are violations of The Fair Credit Reporting Act 15 U.S. Code 1681s2 F ( Clause iii ) - Responsibilities of furnishers of information to consumer reporting agencies.

( ii ) Reporting Except as provided in clause ( iii ), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or is not required to make 1 or more payments pursuant to the accommodation, the furnisher shall ( I ) report the credit obligation or account as current; or ( II ) if the credit obligation or account was delinquent before the accommodation ( aa ) maintain the delinquent status during the period in which the accommodation is in effect; and ( bb ) if the consumer brings the credit obligation or account current during the period described in item ( aa ), report the credit obligation or account as current. 
( iii ) Exception Clause ( ii ) shall not apply with respect to a credit obligation or account of a consumer that has been charged-off. 

My account has been charged off according to my consumer reports and should not be reported according to the statue stated above! DISCOVER IS INTENTIONALLY BREAKING THE LAW UNDER THE FEDERAL CREDIT REPORTING ACT!

IRS Publication 4681 ( 2020 ), Canceled Debts, Foreclosures, Repossessions, and Abandonments Canceled debt.

Even if you didn't receive a Form 1099-C, you must report canceled debt as gross income on your tax return unless one of the exceptions or exclusions described later applies. 

If the abandoned property secures a debt for which you are personally liable and the debt is canceled, you will realize ordinary income equal to the canceled debt. This income is separate from any amount realized from abandonment of the property. You must report this income on your return unless one of the exceptions or exclusions described in chapter 1 applies.

Forms 1099-A and 1099-C. 

In most cases if you abandon : real property ( such as a home ), intangible property, or tangible personal property held ( wholly or partly ) for use in a trade or business or for investment that secures a loan and the lender knows the property has been abandoned, the lender should send you Form 1099-A showing information you need to figure your gain or loss from the abandonment. Also, if your debt is canceled and the lender must file Form 1099-C, the lender can include the information about the abandonment on that form instead of on Form 1099-A. The lender must file Form 1099-C and send you a copy if the amount of debt canceled is {$600.00} or more and the lender is a financial institution, credit union XXXX federal government agency, or other applicable entity as discussed earlier in chapter 1.

For abandonments of property and debt cancellations occurring in XXXX, these forms should be sent to you by XX/XX/XXXX. 

ACCORDING TO THE IRS PUBLICATION ABOVE CANCELED DEBT OR CHARGED OFF DEBT THE LENDER MUST FILE A 1099-C AND SEND A COPY TO THE CONSUMER. 

CHARGE OFF IS NO LONGER A DEBT BUT ORDINARY INCOME. ORDINARY INCOME IS NOT REPORTED ON A CONSUMER REPORT THEREFORE DISCOVER IS REPORTING INACCURATE INFORMATION ON MY CONSUMER REPORT! 

DISCOVER IS A FURNISHER OF INFORMATION TO A CONSUMER REPORTING AGENCY. DISCOVER IS PROHIBITED BY LAW TO SIEZE AND DESIST THE REPORTING OF INACCURATE AND INCORRECT INFORMATION.

15 U.S. Code 1681s2 - Responsibilities of furnishers of information to consumer reporting agencies ( a ) DUTY OF FURNISHERS OF INFORMATION TO PROVIDE ACCURATE INFORMATION ( 1 ) PROHIBITION ( A ) Reporting information with actual knowledge of errors A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. 

In conclusion I have shown you the reason why there is an error on my consumer report. You have been put on notice that inaccurate and incorrect information has been reported on my consumer report. Discover has caused me and my family severe harm due to your negligence and inaccurate reporting. This a final opportunity to cure and delete the erroneous inaccurate account from my consumer report. 

YOU HAVE 10 CALENDAR DAYS TO DELETE THIS ACCOUNT FROM MY CONSUMER REPORT OR LEGAL ACTION WILL BE TAKEN AGAINST DISCOVER.

Company response to consumer: Closed with explanation