Consumer complaint received 2024-07-12
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Sued you without properly notifying you of lawsuit
Company: DISCOVER BANK (MI)

I enlisted the services of XXXX XXXX to help manage and resolve my significant debt. XXXX XXXX advised me to stop all payments to creditors as part of their debt settlement negotiations. 

It came as a complete surprise to me when I learned that I was being sued by XXXX XXXX XXXX, allegedly on behalf of Discover Bank. I never received any collection notices or any form of outreach whatsoever from this law firm or Discover Bank leading up to this lawsuit. Nor was I ever served. 

It is unclear whether Discover Bank still owns the alleged debt or if XXXX XXXX XXXX now does since no documentation has been provided to me outlining the status. I have received none of the following : - chain of title supporting any sale of the debt - a breakdown of how the alleged debt was calculated ( statement of how the total amount of claimed debt was determined, including a specification of the original debt amount, interest, and claimed fees or penalties ) - evidence that I authorized the alleged debt At first blush, it appears that XXXX XXXX XXXX, purporting to be the legal representatives of Discover Bank, is engaging in either similar, or the same illegal practices that XXXX XXXX XXXX partook in, a firm also holding themselves out as legal representatives of Discover Bank, where the CFPB brought suit against this firm which ultimately ended in a settlement between this firm and the CFPB just last year. That is, XXXX XXXX XXXX appears to be operating in the same debt collection mill fashion without having the appropriate documentation to support the debt before bringing any debt collection legal action, among other evidence of mass lawsuits across various jurisdictions with a small number of attorneys working at the firm, and engaging in mass account screening methods just as XXXX XXXX XXXXXXXX did. 

Possibly the most alarming issue that is effecting me personally is I accepted a settlement offer with terms that XXXX XXXX XXXXDiscover Bank did not follow through on. Again, it is unclear if XXXX XXXX XXXX bought the alleged debt from Discover Bank or if Discover Bank still owns the alleged debt since I have not been provided any documentation outlining such. 

XXXX XXXX and XXXX XXXX XXXX, perhaps on behalf of Discover Bank or on behalf of itself, negotiated a settlement amount of {$13000.00}, with re-payment terms over 24 months that I accepted through the XXXX XXXXXXXX XXXX on XX/XX/year>. However XXXX XXXX XXXXDiscover Bank did not follow through on submitting the appropriate paperwork to XXXX XXXX to finalize this offer and reneged on the settlement offer it offered. It appears this was a fictitious settlement offer from XXXX XXXX XXXXDiscover Bank that they never intended to follow through on but instead intended to pursue aggressive litigation tactics to intimidate and harass a consumer going through financial hardship who is actively trying to resolve and work out a settlement plan. This course of conduct in offering fictitious settlement offers with no intention of following through on the offer once a consumer accepts the settlement offer violates the Consumer Financial Protection Acts prohibition against deceptive acts and practices. 

I am anxious to resolve this issue and want to work with Discover Bank to resolve this matter once and for all. I was and am still experiencing financial hardship. I relied upon the settlement offer that XXXX XXXX XXXXDiscover Bank made and negotiated with XXXX XXXX. These practices outlined herein are alarming, violate both state and federal law, disregard my current financial situation, and economic challenges many are facing including myself, and highlight unfair, deceptive, and non-cooperative debt collection practices. 

These practices highlighted herein also raise concerns about Discover Bank 's commitment to working with consumers to find fair resolutions in times of financial difficulty and also raise concerns about transparency, honesty, and fairness from Discover Bank and its legal representatives which is crucial in fostering trust and fairness in financial services with consumers.