Consumer complaint received 2025-09-30 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Can't use card to make purchases
Company: DISCOVER BANK
State: NC

Complaint narrative:
On XX/XX/year>, I received a letter from Discover Financial Services stating that my account had been referred for investigation to verify whether it was obtained through unauthorized use of my personal information. The letter further indicated that a fraud status had been placed on the account and that no further action was required from me. On XX/XX/year>, I contacted Discover for clarification and was informed that someone had made a statement alleging that this account was fraudulent. I strongly dispute this characterization because the account was legitimately applied for and obtained by me after successfully passing Discovers extensive identity verification process. Specifically, to open this account, I called from the phone number listed on my credit report, submitted a copy of my valid government-issued state ID, completed a biometric facial recognition examination through Discovers third-party verification system, and activated the card ending in XXXX upon receipt from my residence at XXXX XXXX XXXX XXXX, XXXXXXXX XXXX XXXX XXXXXXXX XXXX using my verified IP address and personal information. 

By disregarding these robust safeguards, Discover is effectively admitting that its own identity verification process which complies with obligations under the XXXX XXXX XXXX Customer Identification Program ( 31 C.F.R. 1020.220 ) and the Red Flags Rule ( 15 U.S.C. 1681m ( e ) ) is unreliable or insufficient. If that were true, it would raise broader compliance concerns under federal law because the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 16811681x, requires that users of consumer reports have a permissible purpose and act with reasonable procedures to ensure accuracy when extending credit. Discovers sudden reversal and fraud designation contradicts its prior determination that all federally required verifications were satisfied, effectively penalizing me despite my full compliance. Moreover, treating a mere unsubstantiated statement as sufficient to override completed ID verification and biometric authentication undermines Regulation B of the Equal Credit Opportunity Act ( 12 C.F.R. 1002.9 ), which requires creditors to provide clear and specific reasons for adverse actions. 

Discovers unilateral placement of a fraud designation has denied me access to a legitimate credit line, created the risk of inaccurate or misleading credit reporting, and deprived me of the opportunity to contest the decision before adverse action was taken. This action has caused me unnecessary hardship, reputational risk, and potential damage to my credit profile. As a permanently XXXX veteran, stable access to credit is critical in managing my financial and medical obligations, and this disruption has added significant strain. I am requesting that my Discover account ending in XXXX be immediately reinstated, that all fraud designations be removed, and that any inaccurate or adverse information reported to XXXX XXXX XXXX XXXX  be corrected. I further request written assurance that my previously submitted identity verification records, including biometric verification, government ID submission, and IP address confirmation, are acknowledged as valid proof of account ownership. Finally, I seek appropriate compensation for the harm incurred, including administrative costs and hardship related to my status as a XXXX veteran.

Company response to consumer: Closed with non-monetary relief