Consumer complaint received 2025-11-08 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: DISCOVER BANK
State: PA

Complaint narrative:
Summary of Complaint This complaint serves as both a formal report to the Consumer Financial Protection Bureau and a final demand for reinvestigation, restitution, and preservation of records before I initiate binding arbitration and/or civil litigation under the Electronic Fund Transfer Act ( EFTA, 15 U.S.C. 1693 et seq. ), Regulation E ( 12 C.F.R. 1005.11 ), and other applicable consumer protection statutes.

I am a law student and the lawful owner of two Discover Online Savings Accounts ending in XXXX and XXXX. From XX/XX/XXXX through XX/XX/XXXX, unauthorized XXXX transfers were made from my accounts, totaling several thousand dollars. These transfers were never authorized, initiated, or benefited me in any way. 

Despite multiple written reports and phone calls, Discover Bank refused to provisionally credit the funds and concluded there was no evidence of account compromise. That conclusion is factually and legally unsupported and contradicted by new and verifiable evidence outlined below. 

Detailed Timeline and Facts XX/XX/XXXX XX/XX/XXXX : Multiple XXXX transfers were initiatedoften multiple times per daydepleting my Discover Savings balance. These patterns were completely inconsistent with my historical usage. I am a full-time student with no business requiring daily cash transfers. 

Recipient Evidence : At least one recipient number, ( XXXX ) XXXX, belongs to an individual known online as XXXX XXXX ( XXXX ), who was previously banned from XXXX for fraudulent activity. 
Attached screenshots ( Exhibit C ) show failed payment attempts once the account was blacklisted, confirming XXXX itself recognized the fraud. 

Device and Carrier Evidence : In XX/XX/XXXX, I upgraded to an XXXX XXXX ( activation receipt attached, Exhibit B ). Within weeks, I began receiving XXXX XXXXswap alerts attempting to take over my phone line ( XXXX ). I declined all of them immediately. The fraudulent transactions began immediately after these XXXX attempts, showing a clear correlation between the phone compromise and account takeover. 

Address and IP Evidence : I moved out of my XXXX residence ( XXXX XXXX ) in XX/XX/XXXX. If Discovers internal logs show activity from that XXXX address after my move-out date ( Exhibit D ), it would further confirm remote unauthorized access by a third party.

Reporting and Bank Response : I reported these unauthorized transfers to Discover multiple times beginning XX/XX/XXXX. 
Discover denied my claim, citing no compromise, but did not : Review SXXXX  or IP logs ; Contact XXXX regarding the banned account ; or Provide access to investigation results or device data as required under Regulation E 1005.11 ( d ).

Legal Basis Under EFTA and Regulation E, financial institutions must : Conduct a prompt and reasonable investigation of unauthorized electronic fund transfers ; Provide a provisional credit within 10 business days if additional investigation is needed ; Furnish investigation results and evidence upon request ; and Recredit the account for unauthorized transactions absent demonstrable consumer fault. 

Discover failed to meet these obligations by : Ignoring clear indicators of account takeover and identity theft ; Denying credit without adequate investigation ; and Withholding relevant device/IP log evidence. 

These failures amount to violations of federal consumer protection law and breach of Discovers XXXX network obligations.

Company response to consumer: Closed with explanation