Consumer complaint received 2025-09-22 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: DISCOVER BANK
State: IL

Complaint narrative:
On XX/XX/XXXX, I was the victim of credit card fraud in XXXX. Two individuals impersonating city employees distracted me with a fake {$20.00} donation form. During the interaction, my Discover card was stolen and my unlocked phone was out of my possession. Using both, individuals pushed through a {$3000.00} Discover charge. 

I never approved, authorized, or benefited from this transaction. That same day I : Reported the card stolen to Discover, and Filed a XXXX XXXX  Report ( Incident No. XXXX ), giving Discover the incident number and officer details in XX/XX/XXXX. 

Despite my timely report and providing Discover with the police documentation in XXXX, Discover mishandled this dispute and ultimately denied it. 

Timeline of Discovers Handling XX/XX/XXXX : I reported the card stolen to Discover and filed a police report. On my first call, I panicked and said the card was in my possession because I know the number by memory ( I have been a customer since XXXX ). Minutes later, I corrected myself, called back, and formally reported the card stolen. Later in XXXX when checking multiple times on the status I provided the police incident number and officer detail. 
XXXX XXXX, XXXX : Discover denied my dispute in less than 60 days, even though the Fair Credit Billing Act ( FCBA ) allows up to 90 days for a reasonable investigation. 
XXXX XXXX, XXXX : I called to dispute the denial. I was told I would receive a fraud affidavit, but I never did and after this being the XXXX  request still have not. 
XXXX XXXX, XXXX : Only after its decision did Discover attempt to contact law enforcement on XX/XX/XXXX. I was told they could not reach police and based on the XX/XX/XXXX did not provide any time for myself or police to respond. 
XXXX XXXX, XXXX : Discover confirmed it was standing by its denial and admitted the police report would not change their decision. 

Discovers Reasons for Denial and Why They Fail : XXXX. The transaction was verified. 
Fraudsters had both my stolen card and my unlocked phone. A verified system flag is not authorization by me.

Under 15 U.S.C. 1602 ( o ), unauthorized use is any use by a person without actual, implied, or apparent authority and from which the cardholder derives no benefit. That is exactly what happened. 
XXXX. The card was not reported stolen. 
False. I reported the card stolen on XX/XX/XXXX and gave Discover the police report details ( that was reported same day ) approx. a week later. My initial misstatement in a panicked call does not negate the corrected record and the police report.

Even if Discover disputes this, under 15 U.S.C. 1643 ( a ), my maximum liability for unauthorized use is capped at {$50.00}.

3. We attempted to contact law enforcement. 
Discover denied my dispute on XXXX XXXX, but only attempted to contact police on XXXX XXXX 10 days later. By then, they had already made their decision. 
On XXXX XXXX, Discover admitted the police report would not change their decision. This demonstrates a predetermined outcome, not a reasonable investigation under 15 U.S.C. 1666 ( a ).

Additional Mishandling by Discover I was promised a fraud affidavit multiple times ( including XXXX XXXX ), but never received one. 
I was given contradictory statements by representatives ( whether Discover had questions, whether they could email documents, whether paperwork was sent ). 
I had to call repeatedly for updates ; Discover claimed that they called me once and sent mail out but it was never received and did not attempt any other calls.

Applicable Federal Law 15 U.S.C. 1643 ( a ) : Limits consumer liability for unauthorized use of a credit card to {$50.00}.

15 U.S.C. 1602 ( o ) : Defines unauthorized use as use of a credit card by a person without authority, from which the cardholder receives no benefit.

15 U.S.C. 1666 ( a ) : Requires creditors to conduct a reasonable investigation before denying a dispute and allows up to 90 days to do so. Discover denied my claim in less than 60 days, before reviewing evidence, and admitted the police report would not matter.

Applicable Illinois Law Illinois Consumer Fraud and Deceptive Business Practices Act ( 815 ILCS 505/2 ) : Prohibits unfair and deceptive practices in trade or commerce, including financial services. Discovers denial, based on false reasoning and ignoring evidence, falls under deceptive practice.

Illinois Criminal Code ( 720 ILCS 5/17-1 Deceptive Practices ) : The use of a stolen credit card to obtain goods or services is a Class 3 felony under state law. Discovers refusal to treat this as fraud ignores the criminal nature of the transaction

Company response to consumer: Closed with explanation