Consumer complaint received 2018-05-29
Company: DISCOVER BANK
State: GA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
On XX/XX/XXXX I noticed that there were charges made by my XXXX year old son, on my XXXX XXXX XXXX, I contacted the credit card company and initiated a dispute that the charges were done without my consent. Attached is the initiation email from XXXX. The amount of the charges were around {$1200.00}. 

The dispute was resolved in my favor and the service rep recommended that I check any other credit cards that might been used with my sons online gaming system ( XXXX and XXXX ).  One of the main reasons why the XXXX found in my favor was because, all the gaming systems, XXXX/XXXX, XXXX and XXXX require that a user have a credit card on file. At the time, there was no protection from a child purchasing items without a parent knowing that something was charged to their credit card until the parents credit card statement arrives in the mail. 

Based on the recommendation, I started to review my DiscoverCard statements and found that my son and his friend ( all about XXXX years ) charged {$1500.00} during the period of XX/XX/XXXX thru XX/XX/XXXX. I immediately contacted the two gaming companies, XXXX and XXXX and was told that since the transactions are more than 6 months old they would not issue a refund. I explained to both companys that I was not aware that the transactions occurred, since I pay the balance in full each month and always run with large balances. one of the game console representatives from XXXX suggested that I contact my credit card company and file a dispute. He said that is another way to get around the 6 month restriction. I further ask why there are/were any mechanisms in place to prevent a child from doing this type of unauthorized purchases. I explained to both to him that if I did not post and credit card on their site, then my son could not play online with his friends. The XXXX representative suggested that I purchase a debit card and that would limit my exposure. I respectfully told that suggestion does not resolve the issue. He indicated that they are working on pin code. I asked him to send me the link so that I can see if I am able to lock down the account. 

I contacted DiscoverCard where the charges were made and opened a dispute on XX/XX/XXXX.  Despite presenting and providing the above information to the dispute department, they indicated that they would not reverse the charges. I appealed the decision to a manager who indicated that he agreed with the prior decision. I explained the issue was further compounded because DiscoverCard sent me two new cards due to their information being compromised on their system. The first notice that I received, via email, from DiscoverCard was on XX/XX/XXXX ( Copy Attached ) in it the statement was included : XXXX. Because your security is important. Your card information might have been part of a data breach that did not involve Discover card systems. To help keep your card information safe, we're sending you a new one. Your new card should arrive in an unmarked envelope within 3-7 days. 

2. Breathe easy. As a reminder, you're never responsible for unauthorized purchases on your Discover card. So, you can keep using your current card until your new one arrives. Then, activate and sign your new card right away.

3. We've got you covered. We're monitoring your account 24/7 and we'll contact you if we spot anything unusual. But if you happen to see a purchase you don't recognize, just call XXXX to speak to a U.S.-based Fraud Specialist anytime. 

Prior to being issued the XXXX new card issuance, I had alerts set up that would have let me know if there was any suspicious charges. As an example : - My wife was in XXXX on a business trip, and I received a text notifying me that someone in XXXX was trying to purchase an item for {$79.00}. I called my wife, confirmed that she was at a department store, trying to purchase a pair of shoes. I responded via text to DiscoverCard a yes that I was aware and have approved the purchase. The transaction was approved on the spot. Which is a feature that I loved about DiscoverCard. I assume that everything that I had in place with my old card would transfer over such as purchases, statements and alert settings. 

On the credit card replacement, it clearly states that Discover would notify if they : " We've got you covered. We're monitoring your account 24/7 and we'll contact you if we spot anything unusual. '' Furthermore, the email states : " As a reminder, you're never responsible for unauthorized purchases on your Discover card. '' Subsequently, I received another email on XX/XX/XXXX indicating ( Copy Attached ) that my information may have been part of a data breach. The following message was included in the email : Your account information may have been compromised as part of an external data breach. No Discover owned or controlled systems were compromised by this incident. Because your security is important, we're replacing your card ( s ) to help keep your card information safe.

You can keep using your current card until your new one arrives in about 3-7 days. Then activate and sign your new card immediately All old card ( s ) on your account will be deactivated once you activate your new one Your old card ( s ) will be automatically deactivated after XX/XX/XXXX. 
You're never responsible for unauthorized purchases on your DiscoverCard account Again, I assumed that everything was still the same as before. Even though I provided this information including their guarantees, the manager would not overturn the decision and was quite abrupt with me. 

I then contacted the DiscoverCards Office of Consumer Advocacy around the end of XX/XX/XXXX or perhaps early XXXX and spoke with XXXX XXXX. I provided the history of my dispute to her, including the two email replacement notices along with the guarantees. She in turn indicating that she would call me back within 10 days. After the 10-day period, I did not hear back from her and I called and left her a message to let me know the status of my complaint. On XX/XX/XXXX, I received an email from XXXX XXXX indicating that she has been out of the office and would call me. The following day I responded to her email and reminded her about the multiple replacement cards issued by DiscoverCard and again reminded her about the guarantees. I received a call from XXXX XXXX, indicating that she could not get management to agree to reverse the charges and credit my account. She asked if I could prove that the other credit card company indeed issued a credit and could I provide her with all the documentation. I provided the documentation on XX/XX/XXXX. Subsequently, On XX/XX/XXXX XXXX XXXX, called an informed me that she was not able to reverse the decision, despite the additional information. During our conversation, she concluded that perhaps the best way to address this issue if to file a fraud claim That same day, I received an email from XXXX XXXX recommending that I file a fraud claim. Therefore, I contacted the fraud department on XX/XX/XXXX, and explained the whole situation to the fraud specialist. The specialist indicated that she did not believe this was fraud because it was my son and that I had allowed the card to be posted. I asked that she open the case and that their customer Advocacy representative recommended that I file the claim. The fraud specialist indicated that she is not part of their department and can not speak for the fraud department. 

Subsequently, the fraud unit declined my claim because I posted the credit card on the game site. I have repeatedly, requested that they provide me with an explanation that states if a person post there card to any site, all unauthorized transactions will not be covered. The fraud specialist indicated that in those cases they would cover the charges. I asked respectfully, why is this any different? I have not received and explanation just a denial. Even though my XXXX year old son or his friends made the charges that I did not authorize, i have been unsuccessful in getting them to reverse the charges. 

On a personal note, my wife and I have been with Discover since the early eighties and have run on an annual basis through the DiscoverCard over {$70000.00} in annual charges. We both have FICO scores around XXXX ( perfect being XXXX ). We believe in pay our obligations.

Company response to consumer: Closed with explanation