Consumer complaint received 2025-04-09 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: DISCOVER BANK
State: NJ

Complaint narrative:
Subject : Formal Complaint Regarding Furnishing of Inaccurate and Unlawful Information to Consumer Reporting Agencies I am submitting this formal complaint to address the unlawful and inaccurate reporting of accounts on my consumer credit file by one or more furnishers in violation of federal and state law. These entries have materially harmed my credit reputation and economic liberty. I submit this complaint pursuant to the Fair Credit Reporting Act ( FCRA ), the Fair Debt Collection Practices Act ( FDCPA ), the Privacy Act of 1974, Uniform Commercial Code ( UCC ), the Securities Exchange Act of 1934, IRS codes, and the constitutional right to redress under equity law and state statutes in New York, New Jersey, and Delaware. I. Legal Basis for Complaint and Enforcement 1. Violations of the FCRA and FDCPA 15 U.S.C. 1681e ( b ) : Requires consumer reporting agencies to maintain the maximum possible accuracy of credit data. 15 U.S.C. 1681b ( a ) ( 2 ) : Regulates permissible purposes for obtaining and reporting consumer data. 15 U.S.C. 1666b & 1637b : Prohibit the inclusion of disputed and unverified billing or transaction data. 15 U.S.C. 1692g : Requires validation of debts before they can be reported or collected. 12 CFR 1026.13 : Requires creditors to respond to billing error disputes with verified documentation. 2. UCC and Trust-Based Commercial Protections Under UCC 3-203 , no transferee may claim rights to an instrument obtained through fraudulent or unauthorized transfer. I have filed and perfected a UCC-1 Financing Statement securing all related accounts under my private irrevocable trust : XXXX XXXX XXXX XXXX XXXX These instruments were not lawfully negotiated, endorsed, or validated under commercial law. Additionally, I have IRS-accepted Form 1099-C ( Cancellation of Debt ) notices showing cancellation of obligations, which precludes continued reporting under any accounting standard or IRS compliance. 3. Violation of the Privacy Act of 1974 and Improper Disclosure Inclusion of financial instruments or charge-offs derived from transactional experiences violates 5 U.S.C. 552a ( b ) and 15 U.S.C. 1681a ( 2 ) ( A ) ( i ), which explicitly exclude such information from being reported without lawful consent. 4. Violation of the Securities Exchange Act of 1934 Credit furnishers and third-party collectors have failed to comply with SEC rules regarding the securitization and sale of consumer financial instruments, including Regulation AB disclosures and Rule 15Ga-1 requirements. No disclosures have been made to me, the originator and original holder of rights. 5. State Law Violations ( New York, New Jersey, Delaware ) N.J.S.A. 56:11-28 et seq. : Mandates fair reporting and prohibits deceptive practices in credit and collection. N.Y. Gen. Bus. Law 380-j : Prohibits credit reporting of obsolete or unverified data. Del. Code Ann. tit. 6, 2208 : Upholds rights to challenge inaccurate data in consumer transactions. II. Violations by Furnishers and CRA Entities Late payments, charge-offs, repossessions, and collections have been reported without proper validation or permissible purpose. Charge-off entries that have been lawfully discharged and cancelled via IRS Form 1099-C are still being reported on my consumer credit file. This is a clear violation of federal tax law, Generally Accepted Accounting Principles ( GAAP ), and consumer reporting restrictions under the FCRA. According to IRS Publication 4681 and 26 U.S.C. 6050P, once a debt is discharged and the creditor issues Form 1099-C, that creditor has acknowledged that the debt is no longer collectible and has been treated as income for tax purposes. Per IRS regulatory guidance, once a debt is charged off and forgiven, it must be removed from a consumers liabilities and is considered income to the debtor it is no longer a debt and can not lawfully continue to be reported as such on a consumer report. Continued reporting of these cancelled debts is not only misleading but constitutes double jeopardy : the consumer is taxed on discharged income and simultaneously harmed by an uncollectible, invalidated entry. This misreporting violates : 15 U.S.C. 1681e ( b ) ( maximum possible accuracy ) 15 U.S.C. 1681i ( failure to reinvestigate disputed entries ) 26 C.F.R. 1.6050P-1 ( IRS regulations for discharge of indebtedness ) GAAP ASC 310-10-35 ( forbidding recognition of receivables once charged off ) Assertion of Constitutional and Natural Rights Moreover, I am exercising my inalienable rights under the Bill of Rights, original Constitution for the united States of America ( 1787 ), and natural law principles, which are preserved and enforceable under equity jurisdiction. These rights include, but are not limited to, the Fourth Amendment protection against unlawful seizures and disclosures of private information, and the Fifth Amendment protection against deprivation of property without due process of law. The continued reporting of cancelled debts, improper use of my consumer report, and failure to acknowledge secured trust ownership of my accounts constitute unlawful intrusions and violations of my private estate. Furthermore, I invoke Article I, Section 10 of the Constitution, which prohibits impairments of the obligation of contracts, as my interests and property are lawfully secured under UCC financing statements and held in trust. I stand on the rights retained by the people under the Ninth and Tenth Amendments, and I reserve all rights and remedies under common law, equity law, and international human rights declarations, including the Universal Declaration of Human Rights ( Article 17 ) and ICCPR ( Article 12 ). Therefore, I am demanding the immediate and permanent deletion of all such accounts reported as charge-offs after issuance of 1099-C, and I request the CFPB initiate an investigation into these continued violations. Repossession activity was recorded without judicial due process or verified underlying contract in violation of 15 U.S.C. 1681b and UCC 9-610. Transactions reported as debts were securitized or monetized without notification or legal standing to enforce. III. Request for Relief and Action I respectfully request the Consumer Financial Protection Bureau to : Investigate all accounts reported by the furnishers and credit bureaus that reflect inaccurate or unauthorized negative entries. Order immediate deletion of : Late payments Collections Charge-offs Repossessions Any accounts disputed and subject to 1099-C or UCC-1 trust ownership Enforce penalties for failure to comply with consumer protection laws, privacy laws, and federal banking and securities laws. Provide full audit documentation regarding the contractual and lawful authority of the reporting entities. IV. Supporting Documentation ( Enclosed/Available Upon Request ) Notarized Affidavit of Political and Tax Status UCC-1 Financing Statement referencing XXXX XXXX XXXX XXXX IRS Form 1099-C ( s ) E-Verify documentation reflecting non-U.S. citizen national classification Equity law summary and legal maxims supporting remedy Certified trust ownership documentation of affected accounts This complaint is submitted in good faith under the principles of equity, federal jurisdiction, and trust protection law, and I demand corrective action in accordance with my constitutional rights and legal standing. Thank you for your attention and prompt resolution. Respectfully submitted, XXXX XXXX

Company response to consumer: Closed with explanation