Consumer complaint received 2020-10-31
Company: DISCOVER BANK
State: IL
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was result of identity theft

Complaint:
Debt Validation and Complaint against Discover Card ( subsidiary of XXXX XXXX ) This letter is being sent to you in response to your XX/XX/2020 Debt Collection attempt on the debt I purportedly owe to Discover Bank ( formerly the XXXX XXXX XXXX ), which is a part of XXXX XXXX /Federal Reserve who controls Discover as of today. 

Only a legal owner of the debt can collect the debt, IF it was the actual debt and IF this debt exists. Discover Bank, in its own words to Federal Agency ( SEC ), never was an owner of my Note, while my transaction was with totally different parties and totally different nature that Discover misrepresent to me. 

In reality, I was paid for providing financial Services to Big Investment Banks masqueraded as extension of credit by Discover ( a sham conduit ) to be deceptively drafted into a high-risk securitization scheme operated by XXXX XXXX , XXXX XXXX XXXX, and other large Investment banks, under leadership of Federal Reserve. To the wit, I was paid to issue a Promissory Note which was used by Big Banks as a base of their securitization scheme without any compensation to me or royalties for use of my - plus return the only payment for my financial services if I use it as a credit card. 

According to current report filed by Comptollerr, XXXX XXXX XXXX, one of the real parties and the main underwriters for Discover Card Master Trust I, who purportedly issued {$1.00} XXXX shares backed in part by my identity, made about {$10.00} per {$1.00} paid to me for my financial services, which means received at least {$16000.00} as unjust enrichment. 

None of this was disclosed to me at the time I issued a Promissory Note. According to GAAP, Discover ( IF it were an owner of my purported debt - must record my Note as an asset on their bookkeeping ledger ; and write off any balances IF they received any extra profit on top of disclosed. 
According to Discover Master Trust Prospectus, Discover Bank was a Sponsor, Originator of Assets and Servicer ( but not the owner ) Central Index Key Number : XXXX while Discover Funding LLC was a Depositor Central Index Key Number : XXXX into a Discover Card Execution Note Trust, Issuing Entity of the Notes Central Index Key Number : XXXX, Discover Card Master Trust I, Issuing Entity of the Collateral Certificate Central Index Key Number : XXXX, where BOA and some other Big Banks acted as Underwriters. 

The Collateral Certificate ( one, for all {$1.00} XXXX ) was issued via book-entry system owned by Federal Reserves member Depository Trust Corporation and assigned to its subsidiary XXXX XXXX XXXX, as the sole Registered Shareholder, through its parent holding company the XXXX XXXX XXXX XXXX XXXX self-regulated companies, as the only beneficiary of the Certificate where Disclover Bank was a sham conduit sponsor ; originator of assets and servicer but never OWNER of the underlying assets aka my Promissory Note. 

According to Prospectus ( Form 424B5, filed with SEC ) Delivery : The notes offered by this prospectus will be delivered in book-entry form. Except under limited circumstances, purchasers of notes will not be entitled to have the notes registered in their names and will not be entitled to receive physical delivery of the notes in definitive paper form. 

In other words, Discover Bank, who was a Sponsor, Originator and Servicer, but not the Owner of my Note ( as disclosed in Prospectus ) via its underwriters, XXXX XXXX XXXX, ect. offered INFORMATION about my Note for SALE via book-entry system owned by XXXX and XXXX XXXX XXXX while the entire transaction with me was a camouflaged as a demand to repay my only compensation for financial services to Big Banks who made at least $ XXXX from trading my identity ( aka identity theft ) on the open market. 

None of real parties or real nature of my transaction was disclosed to me, as well as profits from trading derivatives information about The Certificate held by XXXX XXXX XXXX on the open markets. All without my knowledge or consent, no need to say without any compensation while I am entitled for at leat 20 % of royalities from ALL trades by ALL parties engaged in this transaction. 

Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 ( b ) that your claim is disputed and validation is requested. 

This is NOT a request for verification or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you. 

Please provide me with the following : What the money you say I owe is for. Explain and show me how you calculated what you say I owe ; Provide me with copies of any papers that show I agreed to pay what you say I owe ; or explain based on which authority you can collect from me. Please provide me a copy of retainer for XXXX XXXX XXXX by their purported client, Discover Bank. 

Please note that only a creditor or a lawful assignee of the creditor can collect a debt. The creditor is by definition the party who claims to own the debt. If they own the debt then they are reporting the debt as an asset receivable on their accounting records. Since investors do NOT buy debts, but merely buy imaginary certificates via XXXX/XXXX book entry system, backed by information about the debt, there is no party anywhere that is a creditor. If there is no creditor, there can be no debt, because there is nobody entitled to receive payment. 

Please explain based on which evidence you concluded that I owe anything to Discover Bank and not Discover Bank owes to me a part of profits they received from trading my personal data on the open market without my knowledge and consent, no need to say without fair compensation. Based on my estimate, parties who involved in my transaction received at least {$16000.00} revenue by selling my securitized data to investors who are NOT my creditors ; while only returned me {$1600.00} as a one-time payment for issuing a Promissory Note based on which XXXX and other Big Banks ( acting under glimpse of Discover, who is merely an originator but not the owner of any Notes ) sells their derivatives and other unregulated securities, which XXXX expects me to return them with interest. Please be informed that I demand royalties, no less than 20 %, from ALL sales of profits from securities backed by my name and signature, no less than {$3300.00} owed to me by XXXX XXXX XXXX, plus treble damages for fraud plus treble damages for racket via local racketeers with legal licenses XXXX XXXX XXXX, XXXX and their mob member XXXX XXXX. 

Please provide me evidence if my Promissory Note as Appeared on the Application for the Credit was processed by Discover Bank in accordance with GAAP. Was it placed as a receivable to Discover Bank account to generate profits? If yes, please state how much profits were generated by using my signature on the Application as an ASSET on Discover balance sheets. Please explain me how the cash earlier credited is now deposited. Is this a debit to cash and a credit to a bank liability like a checking account or demand deposit account or savings account. Is it treated as a new ASSET on the Discover balance sheets? Is this new ASSET came from me, as a borrower, thus Discover owes me a liability related to this new asset? Please provide me the proof where was my Promissory Note ( application to buy a credit card ) recorded byDiscover. 

Please state if my promissory Note was securitized and sold to investors for cash and how much profits Discover received by trading on my name, signature and reputation on the open markets. Please send me a document where it said that I allowed Discover to use my name, signature and reputation to trade on the open market as a security to generate profits ; or to pass my information to any third parties such as XXXX or XXXX XXXX XXXX. Discover got my Promissory Note/Application for Credit for free and I suspect that is was used as an asset to generate massive profits by trading on my name, which equates to identity theft ; swindling and counterfeiting. 

I respectfully request to validate for me this debt and provide me adequate assurance that my promissory Note was properly recorded in Discover bookkeeping ; disclose if my application was used as a guarantee for any trades ; the amount of profits received from trades ; and a copy of the document where these transactions were explained to me and I gave my permission to these trades. Once Discover provide me a full validation of Debt and Adequate Assurance, I will send you the next payment. This is not a refusal to pay but the request to validate the Debt. 

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureaus ( XXXX, XXXX or XXXX ) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following : Violation of the Fair Credit Reporting Act ; Violation of the Fair Debt Collection Practices Act ; Defamation of Character. 

If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist. 

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is. 

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately. 

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS. 

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose. 

Best Regards, XXXX XXXX

Company response to consumer: Closed with non-monetary relief