Consumer complaint received 2024-05-15
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: DISCOVER BANK (NC)

Subject : Complaint Against Discover Card for Unfair Account Closure and Negative Credit Reporting Dear Sir/Madam , I am writing to file a formal complaint against Discover Card regarding their handling of my credit card account, which I believe constitutes unfair and potentially illegal practices. 

On XX/XX/XXXX, I received an email from Discover Card stating, " We have taken this action because we were unable to verify personal information on your account. We will report to the credit bureaus that the account was closed by creditor, and credit your account with your card rewards balance if you have one. '' This action was taken without prior notice or any attempt to contact me for verification of my identity. 

Here are the specific issues I have encountered : Lack of Prior Notification and Verification Request : At no point did Discover Card communicate with me to request any form of identification or verification of personal information. I opened this account on XX/XX/XXXX, and have been making timely payments on this account for several months, indicating my active and responsible management of the account. 

Unwarranted Account Closure : Discover Card closed my account on the grounds of unverifiable personal information without providing an opportunity for me to address or correct the issue. This closure was abrupt and unjustified given my payment history and consistent account activity. 

Negative Impact on Credit Report : Despite claiming an inability to verify my personal information, Discover Card has reported the account closure to credit bureaus, indicating that the account was closed by the creditor. This action negatively impacts my credit score and overall credit history, which is particularly troubling since I have not been delinquent or irresponsible with my payments. 

Extenuating Circumstances : In XX/XX/XXXX, I was hospitalized with XXXX for 10 days and spent months recovering from related health issues. I have documentation to verify this if needed. Additionally, I had to return to the emergency room on XX/XX/XXXX and XX/XX/XXXX, due to complications from my illness. Due to my hospitalization and recovery, I missed the XXXX payment. Upon resuming my financial activities, I discovered that Discover Card had closed my account. 

It is perplexing and concerning that Discover Card can claim they are unable to verify my personal information while simultaneously having enough information to report to the credit bureaus. Furthermore, at no time did Discover Card reach out to me to request any form of identification or verification to resolve this issue. 

Given the above points, I believe Discover Card 's actions are not only unfair but potentially in violation of consumer protection laws. As a responsible consumer, I should have been afforded the opportunity to verify my information before any adverse action was taken against my account. Additionally, if they were truly unable to verify my personal information, it raises the question of how they could report accurately to credit bureaus.