Consumer complaint received 2024-09-15
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: DISCOVER BANK (AR)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, ARKANSAS XXXX XXXX Sat, XX/XX/2024 DISCOVER BANK XXXX XXXX XXXX XXXX XXXX, ILLINOIS XXXX RE : Account Paid in Full Upon Closure or Charge-Off Due to Internal Accounting Adjustments Account Number Ending in XXXX Dear DISCOVER BANK, I am writing in reference to the above account, which, according to my records, was paid in full or written off through your internal accounting processes upon its closure or charge-off. I am formally requesting that you update your records and reflect this status accurately across all relevant channels, including any reporting to credit bureaus. 

Legal Basis for Non-Recognition of the Debt : 1. Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681 : Under the FCRA, data furnishers are legally required to provide accurate and complete information to credit reporting agencies. As such, any reporting of this account must accurately reflect that it was satisfied through internal business procedures. If the account was closed or charged off internally, it is inaccurate to list the account as outstanding, delinquent, or unpaid. The FCRA mandates that incorrect information must be promptly corrected or deleted from a consumers credit report. 



2. Uniform Commercial Code ( UCC ) UCC 3-603 : According to the Uniform Commercial Code, specifically Section 3-603, if a party to an obligation ( such as a creditor or agency ) discharges or settles a debt through its own internal procedures or waivers, no further action or claim can be made on the debtor. If the creditor has elected to charge off the debt internally as a business decision, the obligation is no longer active and can not legally be pursued further by any third-party debt collectors.

3. Truth in Lending Act ( TILA ) 15 U.S.C. 1601 et seq. : The Truth in Lending Act requires full disclosure and accuracy in credit accounts, including charge-offs and account closures. If the creditor or financial institution made a decision to settle or charge off the account internally without requiring further payment from me, this status must be accurately reported, and no additional collections activity can be conducted. Any future attempts to claim a balance would be a violation of this act. 
Account Paid Through Internal Accounting Adjustments : Upon review of my records and statements, I confirm that any obligation that may have existed regarding this account has been extinguished by your internal processes, whether through a charge-off, settlement, or accounting reconciliation. As such, this account should now reflect a XXXX balance and paid in full status. 

It is important to note that the Fair Debt Collection Practices Act ( FDCPA ) and other federal laws prohibit attempts to collect on a debt that no longer exists. Under the FDCPA ( 15 U.S.C. 1692 ), you are barred from engaging in any further communication, collection activity, or reporting regarding this matter. Any such actions would constitute a violation, and I reserve the right to take legal action if this occurs.

Required Action : Please update your records to reflect that this account has been paid in full or charged off through internal processes. 

Any negative information regarding this account should be removed from all credit reporting agencies in accordance with the FCRA and any applicable state laws. 

You are legally required to send me written confirmation that this matter has been fully resolved and that no further collection activity will take place. Furthermore, you must provide written proof that the necessary corrections have been made. 


Legal Consequences for Non-Compliance : Be advised that failure to accurately report the closure of this account or to cease further collection activity will result in violations of the Fair Credit Reporting Act ( FCRA ), the Fair Debt Collection Practices Act ( FDCPA ), and the Truth in Lending Act ( TILA ). I am fully prepared to enforce my rights under these laws, which may include seeking statutory damages, attorney fees, and other remedies as permitted under federal and state law.

Please send written confirmation of your compliance with this request within 30 days of receipt of this letter. 

Thank you for your immediate attention to this matter. 

Sincerely, XXXX XXXX ALL RIGHTS RESERVED