Consumer complaint received 2025-04-15 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Information belongs to someone else
Company: DISCOVER BANK
State: CA

Complaint narrative:
Subject : Formal Complaint Against Discover Bank for Continued Reporting of Charged-Off Debt in Violation of the Fair Credit Reporting Act ( FCRA ) and IRS Regulations To Whom It May Concern, I am filing a formal complaint against Discover Bank for its unlawful and continued reporting of a charged-off debt to all three major credit bureaus ( Experian, Equifax, and TransUnion ), in direct violation of multiple federal laws, including the Fair Credit Reporting Act ( FCRA ).

The account in question is a Discover credit card with an alleged balance of {$7400.00}, which Discover has classified as a charge-off. According to the reporting, the account was opened on XX/XX/XXXX and charged off on or around XX/XX/XXXX. 
Grounds for My Dispute and Legal Violations : 1. Discover Bank Failed to Provide Validation ( FCRA 609 ) I submitted formal disputes to all three bureaus requesting validation of this debt. Discover Bank failed to provide any legally sufficient documentation, such as a signed agreement, billing statements, or transaction records. Despite this, they continue to report this account as valid.

2. Failure to Properly Investigate My Dispute ( FCRA 611 ) Discover verified the account with the bureaus without conducting a proper investigation. They provided no documentation to me. This constitutes a violation of FCRA 611 and gives grounds for deletion of the tradeline.

3. Violation of FCRA 1681e ( b ) Inaccurate and Unverified Reporting My credit reports also contain multiple name variations and outdated addresses, which may have led to file mixing or incorrect attribution. Discover has not taken steps to ensure accuracy in their reporting, further violating their responsibilities under 1681e ( b ).

4. IRS Reporting Conflict 1099-C Never Issued A charge-off of this magnitude ( {$7400.00} ) should trigger the issuance of an IRS Form 1099-C ( Cancellation of Debt ). I have never received a 1099-C from Discover. If Discover charged off this amount for tax purposes, the debt should be considered forgiven and legally uncollectible. If they did not file a 1099-C, then the continued reporting of the balance is deceptive and inconsistent with tax reporting standards.

This discrepancy suggests either : The debt has been forgiven and should not be reported as collectible, or The debt is being falsely reported as charged-off without fulfilling the IRS requirements XXXX and is therefore an unverified derogatory tradeline. 
5. Damage to My Credit and Livelihood As a result of Discovers negligent and willful reporting, my credit score has been severely impacted, and I am unable to qualify for housing and financial services. This constitutes harm under FCRA 1681n and 1681o, for which I may seek legal remedies.

Request for Relief : Immediate investigation by the CFPB into Discover Banks reporting practices Removal of the Discover Bank charge-off account from all three credit bureaus due to failure to validate, improper investigation, and inconsistent tax treatment Sanctions and corrective action if Discover is found to be violating FCRA or misrepresenting consumer debts across systems I am attaching supporting documentation, including dispute letters, my credit reports, and a formal request for validation submitted to Discover.

Thank you for your time and attention to this serious matter. I trust the CFPB will act promptly to hold Discover Bank accountable. 
Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with non-monetary relief