Consumer complaint received 2026-02-17 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: DISCOVER BANK
State: MO

Complaint narrative:
Discover Bank is furnishing inaccurate and misleading credit information by reporting current late payments and delinquency on a closed account that incurred unauthorized charges while I was incarcerated. Discover was formally notified of my incarceration and the fraud, yet continues to report the account as late rather than suppressing, correcting, or removing the derogatory information.yhe account was also sold to a collection agency which is also reporting to my credit as well This conduct violates the Fair Credit Reporting Act ( FCRA ) and applicable furnisher duties, and reflects a failure to conduct a reasonable investigation after notice of fraud and identity-related misuse. 



Factual Background I was incarcerated during the period in which the disputed charges occurred. 
While incarcerated, I did not have access to the account, did not authorize any transactions, and could not have incurred the charges. 
The account was closed, yet Discover is reporting new late payments as current delinquencies, which is factually impossible absent authorized activity. 
I notified Discover Bank of my incarceration and that the charges were fraudulent. 
Despite this notice, Discover continued to furnish late payments to the credit reporting agencies rather than marking the account as disputed, suppressing reporting, or correcting the tradeline. 



Legal Violations 1. Fair Credit Reporting Act 15 U.S.C. 1681s-2 ( a ) & ( b ) Discover, as a furnisher, is prohibited from reporting information it knows or has reasonable cause to believe is inaccurate. Once notified of a dispute, Discover is required to : Conduct a reasonable investigation Review all relevant information Correct or delete inaccurate information Reporting current late payments arising from fraudulent charges incurred while the consumer was incarcerated is inherently inaccurate and misleading. 

2. Failure to Conduct a Reasonable Investigation ( 15 U.S.C. 1681s-2 ( b ) ) After being notified of incarceration and fraud, Discover failed to reasonably investigate or correct the reporting. Continuing to report delinquency without addressing the impossibility of consumer authorization during incarceration is per se unreasonable. 

3. Materially Misleading Reporting ( Regulation V, 12 C.F.R. 1022 ) Even if Discover claims the balance exists, reporting current lates without accounting for fraud and incarceration is materially misleading, which is prohibited under Regulation V.

4. Identity Theft/ Fraud Protections ( 15 U.S.C. 1681c-2 ) Charges incurred while the consumer is incarcerated constitute identity-related fraud or unauthorized use. Discover failed to appropriately block or correct reporting after notice. 



Harm Caused Ongoing credit score suppression due to inaccurately reported current delinquencies Increased risk-based pricing, denial of credit, and financial harm Continued reputational harm due to false credit data Requested Resolution I respectfully request that the CFPB require Discover Bank to : 1. Immediately delete all late payments and derogatory marks associated with the disputed period 2. Remove or correct the tradeline to reflect fraud/unauthorized activity 3. Cease reporting any delinquency related to charges incurred during my incarceration 4. Provide written confirmation of corrections to all credit reporting agencies 5. Ensure compliance with FCRA furnisher obligations going forward

Company response to consumer: Closed with non-monetary relief