Consumer complaint received 2024-12-06 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: DISCOVER BANK
State: NY

Complaint narrative:
Discover Bank XXXX XXXX XXXX XXXX : XXXX DEVELOP XXXX, DE XXXX Re : Dispute of Charge-Off Reporting and Failure to Issue 1099-C Account Number : [ XXXX ] I am writing to demand the immediate removal of the charge-off listed under Discover Bank on my credit report. I have discovered several significant legal violations related to the reporting of this account, which I believe warrant the immediate correction of this erroneous information. 

Discover Bank has failed to comply with both consumer reporting laws and IRS regulations by continuing to report this account as a charge-off and by not issuing a 1099-C form for the canceled debt. These actions constitute clear violations of the Fair Credit Reporting Act ( FCRA ), Fair Debt Collection Practices Act ( FDCPA ), and IRS guidelines, all of which protect consumers from the kinds of unlawful reporting practices you have engaged in. 
/\ ... ... ... ... ... ... .Violations of Consumer Protection Laws : ... ... ... ... ... ... ... ... Inaccurate Charge-Off Reporting : It has come to my attention that Discover Bank has been reporting this account as a charge-off every month on my credit report. According to FCRA 1681e ( b ), information furnished to credit bureaus must be accurate and complete. Your reporting of a charge-off every month constitutes inaccurate reporting and is a clear violation of consumer law. Charge-offs should only be reported once when the account is charged off, and not repeatedly month after month. This ongoing, inaccurate reporting is misleading and harmful to my credit profile. It also violates FCRA 1681s-2 ( b ), which requires that the information reported to credit bureaus be accurate and verifiable.

... ... ... ... Failure to Provide 1099-C for Written-Off Debt : The debt in question has been written off by Discover Bank, but you have failed to issue a 1099-C form for the canceled debt. Under 26 U.S. Code 6050P, when a creditor writes off or cancels a debt, they are required to issue a 1099-C form to the borrower. Your failure to provide this form is a clear violation of IRS guidelines and consumer protection laws. The failure to issue a 1099-C deprives me of the proper tax documentation I need to account for the canceled debt and places me at risk of tax-related issues.

... ... ... ... ... ... ..Immediate Action Required : Removal of Charge-Off from Credit Reports : * I demand that Discover Bank immediately remove the charge-off from my credit report, as it has been inaccurately reported every month. The continuous reporting of a charge-off is unlawful, and I am entitled to have this erroneous information corrected under FCRA 1681e ( b ). If this matter is not resolved promptly, I will not hesitate to escalate this dispute to the Consumer Financial Protection Bureau ( CFPB ), the Federal Trade Commission ( FTC ), and other relevant regulatory bodies.

... ... ... ... ... ... ... ... ... Issuance of 1099-C : I demand that Discover Bank immediately issue a 1099-C form for the written-off debt, as required under IRS regulations and 26 U.S. Code 6050P. Failure to do so within 30 days will result in me filing a complaint with the IRS for noncompliance, as well as pursuing legal action for failure to provide the required tax documentation.

... ... ... ... ... ... ... ... ..Consequences of Non-Compliance : If these violations are not corrected within 30 days, I will be left with no choice but to seek litigation against Discover Bank for the harm caused by your unlawful reporting practices and failure to issue the required 1099-C. I will pursue all legal remedies available under the Fair Credit Reporting Act ( FCRA ), Fair Debt Collection Practices Act ( FDCPA ), and other applicable state and federal laws. I will also seek damages for any harm to my credit and any potential tax liabilities resulting from your noncompliance.

You are on notice that if Discover Bank does not take immediate corrective action, I will pursue all available legal avenues, including filing complaints with the Consumer Financial Protection Bureau ( CFPB ), the Federal Trade Commission ( FTC ), and taking legal action in court. 

I expect a response and resolution within 14 days. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation