Consumer complaint received 2024-09-15
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: DISCOVER BANK (CA)

To whom it may concern, Issue Type : Mismanagement of Credit Card Account and Billing Error Specific Issue : Discover has failed to refund a credit balance of {$1900.00} owed to me, has not provided clear disclosures as required by the Truth in Lending Act ( TILA ), and may be improperly using or securitizing my credit account without authorization.

Impact on Consumer : This has resulted in financial harm, a lack of transparency, and potentially inaccurate reporting of my financial obligations. 

Specific Legal Violations Cited Violation of Truth in Lending Act ( TILA ) : Discover has failed to provide clear, standardized disclosures regarding APR, fees, finance charges, and other related terms. This is a breach of TILA, which is designed to protect consumers from unclear lending practices.

Breach of Contract : Discover has not properly refunded the balance owed to me, violating the terms of the credit agreement.

Failure to Act in Good Faith : Discover is required to act in good faith in handling customer accounts. The continued failure to refund the credit balance indicates bad faith in account management. in addition to Potential Misuse of Credit Account : There is concern that Discover may be improperly using my credit account for securitization purposes without disclosure or my consent, violating federal consumer protection regulations. 

i wrote discover on XX/XX/XXXX with the following written instructions to perform their duty per the Securities Act, The TIA ( Trustee Inductura Act ) and UCC via your prospectus there XXXX and XXXX filing with the SEC. Attached is also a tender of payment. According to THE UCC my tender of payment is valid. Per UCC 3-104, 3-301, 3-603, 3-111, 3-604. 

This letter was to inform discover of the payment instrument that was mailed out to them on XX/XX/XXXX XXXX. Enclosed in that envelope is the remittance coupon they sent me, which I have accepted for value, consideration, and honor according to the Uniform Commercial Code and returned to discover in good faith as tender of payment of the balance currently on my account, in the full amount enclosed. After deposit of this payment, please adjust the ledgering of the account for the balance or debt on the account to read XXXX That payment was for immediate processing and deposit only. I have mailed this payment to what is reasonably ascertained to be the correct address, according to my statements and card agreement. This tender of payment includes a restrictive endorsement, as seen on the front of the Coupon which states : Without Recourse, U.C.C. 1-308, Therefore, I have mailed it to the address provided. If, however, this address is not the correct division or department, please forward it to the appropriate agency or official for immediate processing. If the appropriate official is unknown, please forward it to the CFO or CEO of the Bank for processing. 

on XX/XX/2024 i followed up with another certified mail letter after discover ignored my first letter. what was included was an affidavit of truth notarized outlining the same concern and asking for the remedy. they sent no GAAP accounting and only billing statement s from the first day of opening the account till current. 

on XX/XX/2024 i sent registered mail to discover with a BOE and again requesting the same information with the additional instruction to process and deposit my BOE and remit all FRN back to me as well as if there was anything wrong with the BOE to send it back to me and to tell me why they did not accept it and what need to be corrected. 

overall discover had ignored everything and has not responded back with answer to any of my request.