Consumer complaint received 2026-01-21 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: DISCOVER BANK
State: CA

Complaint narrative:
I am filing this complaint regarding Discover Cards mishandling of a billing dispute involving defective merchandise and their failure to follow proper dispute escalation and mediation procedures. 

Account : Discover credit card ending in XXXX Dispute Amount : {$160.00} Merchant : XXXX XXXX  Dispute Case Number : XXXX Timeline and Facts : XX/XX/2025 : XXXX XXXX XXXX XXXX XXXX was delivered. 
Upon inspection, the product had visible defects, including cuts in the fabric. The item was not as described and was clearly damaged upon receipt. 
I documented the damage with photographs and contacted both the merchant and Discover. 

The merchant attempted to require that I pay return shipping for a defective product. As a consumer, I should not be responsible for return costs when merchandise arrives damaged or misrepresented. 

XX/XX/2025 : I formally disputed the charge with Discover and provided documentation proving the item was defective. 

Discover initially issued a temporary credit while investigating. 

During the dispute, I contacted Discover and requested an escalation, because the merchant was unresponsive and attempting to shift responsibility onto me despite clear evidence of damage. 

I was told by a Discover representative that the dispute would be escalated and that I would have an opportunity to submit additional documentation and allow further communication with the merchant. 

Instead, the escalation was closed within days, before I was allowed to submit additional evidence or before meaningful mediation could occur. The dispute was ruled in the merchants favor. 

Discover later stated that I should have continued resolving the issue directly with the merchant, even though Discover is supposed to act as a mediator in billing disputes and even though the merchant was requiring me to pay to return defective merchandise. 

XXXX XXXX XXXX  : I filed a complaint through the XXXX XXXX XXXX Discovers Executive Office of Customer Advocacy ( handled by an employee named XXXX XXXX stated they were investigating the issue. 

Despite claiming an investigation was underway, XXXX never contacted me, never requested additional evidence, never reopened the dispute, and never attempted mediation. I received a letter stating that no new information had been provided, even though the dispute was already closed and I had no ability to submit additional documentation. 

It is impossible for a consumer to provide additional evidence when a case is closed and no submission pathway exists. This demonstrates procedural negligence and misrepresentation of the investigation process. 

Core Issues : 1. Discover failed to honor its duty to mediate a billing dispute involving defective merchandise. 
XXXX. Discover approved an escalation but closed it before allowing evidence submission, making escalation meaningless. 
XXXX. Discover defaulted entirely to the merchants position despite documented proof of damage. 
XXXX. Discover required me, as the consumer, to resolve the issue directly with a merchant who was unresponsive and attempting to impose unreasonable return costs. 
5. Discovers Executive Office claimed to investigate but made no attempt to contact me or gather further information. 
XXXX. The dispute outcome effectively forced me to absorb the cost of a defective product. 

Additional Concern : I am concerned that Discover has a financial incentive to deny valid chargebacks, as reversing the charge would require refunding both the principal amount and accrued interest. This creates the appearance of a systemic issue where legitimate disputes are discouraged or prematurely closed to preserve balances and interest revenue. 

Impact : I have never experienced this level of obstruction with any other credit card issuer. I have successfully resolved disputes in the past without issue. This experience has completely eroded my trust in Discover. I will no longer make purchases on this card and plan to pay off and close the account. 

Requested Action : Regulatory review of Discovers dispute escalation and mediation practices Investigation into Discovers handling of defective merchandise disputes Review of whether Discover improperly denied escalation and evidence submission Corrective action to ensure consumers are not forced to pay for defective goods Discovers handling of this dispute was dismissive, procedurally flawed, and deeply concerning. I am requesting CFPB review and intervention. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation