Consumer complaint received 2025-07-28 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: DISCOVER BANK
State: TN

Complaint narrative:
TO : Discover Financial Services Executive Office of Customer Advocacy XXXX. XXXX XXXX XXXX, DE XXXX AND XXXX XXXX Attn : Legal and Compliance Department XXXX XXXX XXXX XXXX XXXX, PA XXXX -- - RE : Joint Notice of Conditional Acceptance and Demand for Full Disclosure of Reporting, Registration, and Securities Activity Related to Discover Account Ending in XXXX REFERENCE : CFPB Case No. XXXX -- - To Whom It May Concern : This communication serves as a joint Notice of Conditional Acceptance addressed to both Discover Financial Services and XXXXXXXX XXXXXXXX XXXX XXXX credit reporting, data monetization, and possible securities-related use of the Discover account ending in XXXX. While each party has responded or participated in the CFPB proceedings referenced above, I hereby conditionally accept all claims, reporting actions, and adverse determinations made by either party, only upon full disclosure and verified documentation as demanded below.

This Notice is issued under the authority of : The Securities Act of 1933, The Truth in Lending Act ( TILA ), The Fair Credit Reporting Act ( FCRA ), The Equal Credit Opportunity Act ( ECOA ), UCC 1-308, and General principles of fiduciary and statutory duty, with the intent of preserving all rights, claims, and defenses available at law and equity.

-- - I. DEMAND FOR VERIFIED DISCLOSURE OF REGISTRATION, REPORTING & SECURITIZATION You are hereby required to provide a certified, sworn, or legally binding response to the following material questions regarding the Discover account ending in XXXX and its treatment by both parties : 1. SEC Registration Has the above-referenced credit account, or any receivable, obligation, or data entry derived from it, been registered as a security with the U.S. Securities and Exchange Commission ( SEC ) under Section 5 of the Securities Act of 1933? If so, provide full registration numbers, prospectus documents, and the name ( s ) of any underlying asset-backed securities, CUSIPs, or entities involved.

2. Securitization or Asset Pooling Has this account, or any receivable associated with it, been pooled, securitized, hypothecated, pledged, or monetized through derivatives, credit facilities, trust structures, investor portfolios, or any financial instrumentdirectly or indirectly?

3. Investor Use and Derivative Instruments Has this account been used in any capacity within : Collateralized debt obligations ( CDOs ), Structured investment vehicles ( SIVs ), Credit default swaps ( CDS ), or Private equity-backed debt trading platforms? 



4. Reporting for Commercial Gain Has XXXX XXXXXXXX received any financial consideration, licensing fees, or indirect profit related to : The use of my account data in risk models or scoring systems, The resale or syndication of credit data to lenders, data aggregators, or XXXX platforms? 



5. Proof of Legal Authority Provide all documents showing that either Discover or TransUnion has been lawfully authorized by signed, bilateral contract to report, trade, or distribute my private financial information. If such consent does not exist, explain the statutory authority under which these actions were performed. 


XXXX. Factual Basis for Adverse Action Explain, with specificity, how a credit limit denial by Discover, citing INSUFFICIENT EXPERIENCE WITH CURRENT CREDIT LIMIT, was made in good faith, free of discrimination, and whether it concealed any underlying commercial activitysuch as investor monetization of the accountby suppressing my eligibility for higher credit tiers.

-- - II. DEMAND FOR RELIEF In light of the disclosures requested above, I hereby demand the following actions be taken : 1. Immediate correction and removal of all adverse or inaccurate data reported to TransUnion and any other reporting agency ; 2. Conversion of the account to an unrestricted, revolving open credit line with no arbitrary limitations ; 3. Equitable restitution and compensation for any profits, interest, investment returns, or gains derived from the commercial use or securitization of this account ; 4. Delivery of all records reflecting reporting activity, third-party transmission, securitization entries, or financial valuation related to the above account.

-- - III. DEADLINE & NOTICE OF LIABILITY You are hereby given fifteen ( 15 ) calendar days from the date of receipt of this Notice to provide the requested information in full.

Failure to respond timely and in good faith shall be deemed : A tacit admission that the Discover account has been monetized, securitized, or reported without lawful authority or disclosure ; A waiver of all defenses to claims arising under the Securities Act of 1933, TILA, FCRA, and related laws ; Grounds for the initiation of legal proceedings, civil complaints, and demands for monetary compensation not less than {$150000.00}, plus punitive damages and regulatory referral.

-- - IV. PRESERVATION OF RIGHTS This correspondence is issued without prejudice, and with full reservation of rights under : UCC 1-308, Federal Rule of Civil Procedure 12 ( b ) ( 1 ) - ( 6 ), All statutory, constitutional, and equitable protections afforded to me as the rightful holder and authorized agent of the referenced account.

This Notice is also being entered into the record of the active CFPB case, and may be submitted to the Securities and Exchange Commission, Office of the Comptroller of the Currency, and U.S. Department of Justice, as warranted.

Copies of this Notice have been sent on this date to : Discover Financial Services XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX and Compliance Department Consumer Financial Protection Bureau ( CFPB )

Company response to consumer: Closed with explanation