Consumer complaint received 2017-04-21
Company: DISCOVER BANK
State: TX
Product: Credit card
Issue: Other

Complaint:
After review of my credit reports in  XXXX    XXXX   I noted an adverse item from  Discover Card Services o n the  XXXX  reporting agencies. I disputed the negative reporting directly with   XXXX   XXXX   XXXX   XXXX   on  XXXX   XXXX ,   XXXX   and again on  XXXX   XXXX ,   XXXX  . Under Federal Credit Reporting Act ( FCRA ) Section  609 the credit reporting agencies ( CRAs ) are required to provide physical verification on items listed on the credit report.  The  XXXX  CRAs failed to provide any verification at all violating FRCA  609 ( a ) ( 1  ) ( A ) so I contacted the furnisher of the negative information Discover Bank requesting an investigation on  XXXX   XXXX ,   XXXX   after two failed attempts to verify through the CRAs. Both disputes came back as verified by the  XXXX  CRAs. The furnisher should have by law conducted an investigation when I disputed with the credit bureaus under FCRA  623 ( b ). Attached is the letter sent to the furnisher Discover requesting an investigation per ( FACTA312 ( c ), FCRA 623 ( a ) ( 8  ) ). In the letter I noted inaccuracies in the information reported to the CRAs and requested an original contract, billing statements for the life of the account, and a full accounting of the account from inception to the reported charge off. Now had the furnisher conducted an investigation in response to my disputes through the CRAs then it would have all of the documentation that I requested in my  XXXX   XXXX ,   XXXX   letter. Apparently an investigation never happened. This furnisher  Discover failed to notify me of the status of the account prior to reporting negative information to the CRAs. Additionally, the letter received today in response to my Section 623  investigation request was completely ignored. Discover Bank sent a letter received on  XXXX   XXXX ,   XXXX   requesting information already provided in the  XXXX   XXXX ,   XXXX   investigation letter attempting to stall an adequate response to the request for an investigation. Meanwhile my consumer rights are in violation. Discover Bank was already provided the  1 ) Account number, 2 ) Address 3 ) Reason for the dispute and with this data the furnisher can complete the investigation required by Law. The furnisher has failed to provide any documentation at all to substantiate the information reported to the CRAs. The Furnisher was giving 37 days to comply with the Fair Credit Billing Act ( FCBA )  however the attached response shows a clear violation of federal laws and my rights as a consumer. If all three of the CRAs and the furnisher of credit information are unable, unwilling to comply with  Federal  laws regarding billing and credit reporting then I 'm requesting the CFPB to step in and enforce federal laws on the furnisher and CRAs. If the furnisher is unable to substantiate the balance, status, and disposition of the account to the alleged account holder then how can it possibly sell the debt to a third party debt collector? No  3rd party debt collector would ever be able to validate this alleged debt without violating the Fair Debt Collection Practices Act ( FDCPA ). I was very surprised that Discover  was not willing to comply with this simply request but insists on continuing the negative reporting with the CRAs and doubling down after 90 days of disputing and requests for investigation. After reading CFPB 's  XXXX   XXXX ,   XXXX   press release titled " CFPB  Oversight Uncovers And Corrects Credit Reporting Problems Bureau Report Outlines Accuracy and Other Issues That Bureau Supervision Has Taken Action to Address '' about the blatant federal violations and consumer complaints about credit reporting from the CRAs I was n't shocked that the private for profit CRAs would recklessly continue reporting inaccurate negative information causing financial harm and duress. However I was deeply disappointed that Discover  would also participate in violating federal laws and my consumer rights by not taking this matter seriously.

Company response to consumer: Closed with explanation