Consumer complaint received 2024-07-07
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Overcharged for something you did purchase with the card
Company: DISCOVER BANK (MA)

Formal Complaint : Discover Card 's Repeated Denial of Valid Dispute and Violations of the Electronic Funds Transfer Act ( EFTA ), Fair Credit Billing Act ( FCBA ), and Fair Credit Reporting Act ( FCRA ) Account Number : XXXX Case Number : XXXX Merchant Name : XXXX XXXX XXXX CA Disputed Amount XXXX {$1300.00} Date of Transaction : XX/XX/XXXX Nature of Complaint : I am filing this complaint against Discover Card for their repeated denial of my valid dispute ( Case Number : XXXX ) regarding a transaction made with XXXX XXXX, a service that has since been discontinued by XXXX. I demand an immediate credit of the full disputed amount of {$1300.00} to my Discover card ending in XXXX. As per XXXX 's email dated XX/XX/XXXX, I was advised to dispute the original charge as " refund never processed '' with my financial institution if the refunds were not credited to my account. These refunds have not been returned to the original payment method, my Discover card. Despite providing ample evidence of full refunds issued by XXXX totaling {$1300.00}, Discover has failed to credit these refunds to my account and has re-billed me for the disputed amount. This has resulted in financial harm, including inaccurate account balances, unauthorized charges, and adverse effects such as conflated balances, loss of credit availability due to the erroneous rebilling of a fully repaid XXXX transaction as a new charge in XXXX, and increased balances above my credit limit, accruing daily interest on amounts previously paid and refunds never processed. 

Summary of Events : XX/XX/XXXX : I made a purchase of {$1300.00} from XXXX using XXXX Key linked to my Discover card. 
XX/XX/XXXX : XXXX discontinued the XXXX XXXX service, making it impossible for any refunds to be made to the original payment method as reported by XXXX. 
XX/XX/XXXX : XXXX confirmed via email that they issued full refunds totaling {$1300.00} for the purchase. 
XX/XX/XXXX : Discover denied my initial dispute, claiming the charge was valid despite the confirmed refunds. 
XX/XX/XXXX : I submitted a rebuttal with additional evidence, including XXXX 's refund confirmation emails. 
XX/XX/XXXX & XX/XX/XXXX : Discover sent repeated denial notices, indicating a lack of thorough investigation and refusal to consider the provided evidence. 

XXXX XXXX from XXXX : In an email dated XX/XX/XXXX, XXXX confirmed a refund of {$840.00} was issued but has not been returned by my card 's issuing bank. This refund is traceable with the reference number provided by XXXX : XXXX. XXXX also stated that additional refunds of {$130.00} and {$360.00} were requested, but they have not yet provided reference numbers for these. 

Total Amount Disputed : The entire transaction amount approved for a refund is {$1300.00}. None of these refunds have been verified as credited to the original form of payment, my Discover card ending in XXXX. 

Discover 's Deficient Investigation, Unfair Practices, and Violations : Discover 's handling of this dispute raises serious concerns and indicates potential violations of multiple consumer protection laws and regulations : 1. EFTA Violations ( 12 CFR 1005.11 ) : Discover has failed to conduct a reasonable investigation into the dispute, including obtaining transaction records from the merchant. They have also failed to timely credit the confirmed refunds to my account, thereby violating my rights under the EFTA.

2. FCBA Violations ( 12 CFR 1026.13 ) : Discover has not provided a clear explanation for their denial, has not addressed the issue of the uncredited refunds, and has re-billed me for the disputed amount before completing a proper investigation. This demonstrates a failure to comply with the billing error resolution requirements under the FCBA, including : 12 CFR 1026.13 ( a ) ( 5 ) : Failure to Credit a Payment or Other Credit : Discover has not credited the {$1300.00} in refunds to my account, which constitutes a billing error.

12 CFR 1026.13 ( b ) : Billing Error Notice : Discover 's failure to provide any evidence to support their claim that the charge is valid.

12 CFR 1026.13 ( c ) : Prohibition on Collection of Disputed Amount : Discover re-billed me for the disputed amount before the investigation was complete. 

XXXX. FCRA Violations ( 15 U.S.C. 1681s-2 ) : Discover 's actions have resulted in inaccurate reporting of my account status to credit bureaus, potentially harming my credit score.

4. Unfair and Deceptive Practices : Discover 's conflicting statements, lack of transparency, and refusal to acknowledge the confirmed refunds constitute unfair and deceptive practices. Their repeated denials and attempts to collect on a debt that has been refunded demonstrate a blatant disregard for consumer rights. 

XXXX. Negligence and Retaliation : Discover 's failure to adequately investigate and resolve this dispute, coupled with their decision to re-bill me for the refunded amount, suggests negligence and a retaliatory approach to my valid claim. 

Supporting Documentation : XXXX 's refund confirmation emails ( XX/XX/XXXX ) Discover 's denial letters ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ) Transaction details ( Transaction ID : XXXX )