Consumer complaint received 2024-09-18
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Charged too much interest
Company: DISCOVER BANK (NY)

Complaint to CFPB XXXX XXXX XXXX XXXX XXXX XXXX New York XXXX XXXX XXXX XX/XX/XXXX To : Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX XXXX, D.C. XXXXXXXX Subject : Formal Complaint Against Discover Financial Services for Fraud, Theft, and Breach of Contract and Trust Complaint Against : Discover Financial Services XXXX XXXX XXXX XXXX XXXX XXXX, UT XXXX Dear CFPB I am filing a formal complaint against Discover Financial Services regarding their fraudulent business practices, theft of consumer funds, and breach of contract and trust in relation to their secured credit product. The actions of Discover Financial Services have caused me significant financial and personal distress, resulting in violations of my consumer rights, and I am seeking restitution of XXXX XXXX dollars ( {>= $1,000,000} ) for pain and suffering, mental distress, and personal injury to my credit profile. 

Background of the Complaint : I applied for and was granted a secured credit product from Discover Financial Services, which required a secured deposit in order to establish the account. This secured deposit was intended to act as collateral, and the use of these funds was subject to specific terms and conditions. However, Discover Financial Services has violated my rights as a consumer in the following ways : 1. Fraud and Theft of Secured Funds : Discover Financial Services has engaged in the unlawful theft of my secured funds. Despite these funds being placed as security for the credit product, Discover has withheld these funds in a manner that constitutes fraud and theft. As a consumer, I trusted Discover to maintain and return my secured deposit under the terms of the secured credit agreement. Instead, my funds have been improperly withheld, and Discover has failed to return them within a reasonable timeframe or through accessible means. This has prevented me from accessing or using my own money, thereby violating my rights. 

2. Charging Interest on Secured Credit Without Borrowed Funds : Discover Financial Services has also violated my consumer rights by charging interest on a secured credit product where no borrowed funds were involved. As a secured product, my funds were provided to establish the account, and there should be no interest charges if I have not used the credit line to borrow additional money. By charging me interest on a secured product, Discover is engaging in deceptive practices that exploit consumers and result in undue financial harm. 

3. Failure to Return Secured Funds in a Timely Manner : Discover Financial Services has breached its contractual obligations by failing to return my secured funds in a timely and accessible manner. I have complied with all requirements and conditions of the secured credit product, yet Discover has unjustly delayed the return of my funds. This constitutes a breach of contract and trust, as Discover has retained my money without cause or explanation, causing significant financial and emotional distress. 

Violation of Consumer Protection Laws : These actions by Discover Financial Services constitute clear violations of consumer protection laws and policies that are designed to protect consumers from fraudulent and deceptive business practices. As a consumer, I have the right to fair treatment, transparency, and the return of my secured funds under the terms of the credit agreement. Discover 's practices violate my rights as a consumer, including but not limited to : - The Truth in Lending Act ( TILA ), which mandates transparency in lending practices, including proper disclosure of interest charges. 
- The Fair Credit Billing Act ( FCBA ), which protects consumers from unfair billing practices, including improper charges on credit accounts. 
- The Consumer Financial Protection Act of 2010, which prohibits abusive practices by financial institutions that harm consumers. 

Request for Restitution : Due to the actions of Discover Financial Services, I have suffered significant financial loss, emotional distress, and personal injury to my credit profile. I am therefore seeking restitution in the amount of XXXX XXXX dollars ( {>= $1,000,000} ) for the pain and suffering, mental distress, and the personal financial harm caused by these violations. I also request a full investigation into Discover Financial Services ' business practices regarding secured credit products and the handling of consumer funds. 

Case Studies and Precedents : There have been several notable cases and legal precedents regarding financial institutions engaging in fraudulent practices, the theft of consumer funds, and the breach of contractual obligations. For instance : 1. XXXX XXXX Unauthorized Accounts Scandal ( XXXX ) XXXX XXXX was found to have created unauthorized accounts for consumers, resulting in financial harm and fraudulent charges. This led to fines and restitution to affected consumers. 

2. XXXX and Credit Card Interest Violations ( 2XXXX ) XXXX was ordered to pay {$600.00} XXXX for illegally charging interest on consumers ' credit card balances where no funds were borrowed. This was a clear breach of consumer protection laws. 

3. Bank XXXX XXXX Class Action Lawsuit ( XXXX ) XXXX  XXXX XXXX settled a class-action lawsuit for over {$410.00} XXXX related to improper overdraft fees, which was a violation of consumer trust and protection laws. 

Each of these cases demonstrates how financial institutions can abuse their power, defraud consumers, and breach contractual obligations, leading to legal and financial penalties. In my case, Discover Financial Services has engaged in similar behavior by violating my rights through fraudulent withholding of funds, improper interest charges, and breach of contract. 

Conclusion : I urge the Consumer Financial Protection Bureau, to investigate Discover Financial Services for their fraudulent practices, theft of consumer funds, and breach of contract and trust. Their behavior represents a gross violation of consumer rights and must be addressed to prevent further harm to other consumers. I seek restitution of XXXX XXXX dollars for the damages I have suffered and request immediate action to hold Discover accountable for their actions. 

Thank you for your time and attention to this matter. I look forward to your prompt response and investigation. 

Sincerely, XXXX XXXX XX/XX/XXXX