Consumer complaint received 2024-04-08 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Confusing or misleading advertising about the credit card
Company: DISCOVER BANK
State: CA

Complaint narrative:
This letter provides evidence that Discover has committed Bank Fraud and extortion, this constitutes a breach of contract in regards to accounts ending in # XXXX According to the XXXX XXXX XXXX written by the Federal Reserve. 

Every American will be forced to register or suffer being able to work and earn a living. They will be our chattels ( property ) and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions. Americans, by unknowingly or unwittingly delivering the bills of lading ( Birth Certificate ) to us will be rendered bankrupt and insolvent, secured by their pledges. 
They will be stripped of their rights and given a commercial value designed to make us a profit and they will be non the wiser, for not one man in a million could ever figure out our plans and, if by accident one or two should figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debts to the registrants in the form of benefits and privileges. 
This will inevitably reap us huge profits beyond our wildest expectations and leave every American a contributor to this fraud, which we will call Social Insurance. Without realising it, every American will unknowingly be our servant, however begrudgingly. The people will become helpless and without any hope for their redemption and we will employ the high office ( presidency ) of our XXXX corporation ( USA ) to foment this plot against America. 

Banks create money through their lending activities. 
What the bank does when they make loans is to accept promissory notes in exchange for credits to the borrowers ' transaction accounts. Discover failed to disclose the fact that they would be transferring credits from my Trust account through the Federal reserve and then loan me my own funds. I was not informed of this or did I consent to this. 

The actual process of money creation takes place primarily in banks. ( 1 ) As noted earlier, checkable liabilities of banks are money. These liabilities are customers ' accounts Thus through stage after stage of expansion, " money '' can grow to a total of 10 times the new reserves supplied to the banking system I am ordering a full forensic accounting audit to show exactly where Discover received credits from my trust account without my knowledge or consent. 

12 U.S. code 1431 ( j ) Audits Notwithstanding the provisions of section 9105 ( a ) ( 1 ) ( B ) [ 2 ] of title 31, audits by theGovernment Accountability Officeof the financial transactions of aXXXX XXXX XXXX XXXXshall not be limited to periods during which XXXX XXXX has been invested therein. The provisions of sections 9107 ( c ) ( 2 ) and 9108 ( d ) ( 1 ) of title 31 shall not apply to anyXXXX XXXX XXXX XXXX. 

The agreement that Discover claims is legal standing, doesnt acknowledge any evidence that Discover would be using my signature and social security number to access my trust account. 

15 U.S. Code 1 Trust, etc., in restraint of trade illegal ; penal Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade orcommerceamong the severalStates, or with foreign nations, is declared to be illegal. Everypersonwho shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding {>= $1,000,000} if a corporation, or, if any otherperson, {>= $1,000,000}, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court. 


This letter will prove that Discover is in breach of contract for misrepresentation of material facts also equal consideration was never established. 

I am requesting a copy of the original signed contract or agreement by both parties. 
Valid contracts need to have all required elements in it to be enforceable under Federal law and states law. 

1.Failure to disclose the origin of funding for account. 
According to the XXXX XXXX XXXX written by the Federal Reserve. 
Banks create money through their lending activities. 
What the bank does when they make loans is to accept promissory notes in exchange for credits to the borrowers ' transaction accounts. Discover failed to disclose the fact that they would be transferring credits from my Trust account through the Federal reserve and then loan me my own funds. I was not informed of this or did I consent to this. 

2.Failure to provide equal consideration which voids any contract. Please provide documentation that shows where funds were originated. According to the Federal reserve, I am the original creditor. 
A valid contract must have consideration, there must be an exchange of things that have value for a legally binding contract. If my social security number and signed promissory note provide the access of funding from my trust account, where is the consideration ( or value ) provided on the part of Discover? What funds did Discover actually provide? How is Discover injured, if not repaid? 

Fraudulent misrepresentation, or material misrepresentation, is the intentional false representation of the terms or facts within a contract. 
Within contract law, there are two types of fraud : Fraud in the fact and fraud in the inducement. 
The contract in question is considered fraud in the inducement, this agreement was based on false information given to me. If a contract is made under fraud in the inducement, it is thrown out, as this is an illegal act. 

Any False representation of material facts made with respect to a contract is the misrepresentation In entering into contract, and which is so acted upon, constitutes Fraud, and entitles party deceived to avoid contract or recover 15 U.S. Code 1591 ( d ) ( 6 ) adverse action For purposes of this subsection, the term adverse action means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested. Such term does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credit limit. 

15 U.S. Code 1692J It is unlawful to design, compile, and furnish any form knowing that such form would be used to create the false belief in aconsumerthat a person other than thecreditorof suchconsumeris participating in the collection of or in an attempt to collect adebtsuchconsumerallegedly owes suchcreditor, when in fact such person is not so participating. 

Any person who violates this section shall be liable to the same extent and in the same manner as adebtcollector is liable undersection 1692k of this titlefor failure to comply with a provision of this subchapter. 

18 U.S. Code 894 Collection of extensions of credit by extortionate means. 
Whoever knowingly participates in any way, or conspires to do so, in the use of any extortionate means ( 1 ) to collect or attempt to collect any extension of credit, or ( 2 ) to punish any person for the non repayment thereof, shall be fined under this title or imprisoned not more than 20 years, or both. 



Below are examples of court cases that validate my claim. 

A Bank my not lend its credit to another even though such a transaction turns out to have been of benefit to the bank, and in support of this a list of cases might be citied, which- would look like a catalog of ships. [ Emphasis added ] XXXX XXXX XXXXXXXX XXXX  XXXX XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX XXXX. 

In the federal courts it is well established that a national bank has no power to lend its credit to another by becoming surety, endorser, or guarantor for him. XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. 

A National Bank has no power to lend its credit to any person or corporation... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX denied in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX. 

The doctrine of ultra vires is a most powerful weapon to keep private corporations within their legitimate spheres and to punish them for violations of their corporation charters, and it probably is not invoked too often... XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. 

It has been settled beyond controversy that a national bank, under federal law being limited in its powers and capacity, can not lend its credit by guaranteeing the debts of another. All such contracts entered into by its officers are ultra vires... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ). 

... checks, drafts, money orders, and bank notes are not lawful money of the United States... State v. XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX Neither, as included in its powers not incidental to them, is it a part of a banks business to lend its credit. If a bank could lend its credit as well as its money, it might, if it received compensation and was careful to put its name only to solid paper, make a great deal more than any lawful interest on its money would amount to. If not careful, the power would be the mother of panics,... Indeed, lending credit is the exact opposite of lending money, which is the real business of a bank, for while the latter creates a liability in favor of the bank, the former gives rise to a liability of the bank to another. I XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

It is not within those statutory powers for a national bank, even though solvent, to lend its credit to another in any of the various ways in which that might be done. XXXX XXXX XXXX XXXX XXXX  XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX ( XXXX ) There is no doubt but what the law is that a national bank can not lend its credit or become an accommodation endorser. XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. 

A bank can lend it money, but not its credit. XXXX XXXX XXXX  XXXX XXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ( XXXX ) XXXX. 

... the bank is allowed to hold money upon personal security ; but it must be money that it loans, not its credit. XXXX XXXX  XXXX national bank, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

A loan may be defined as as the delivery by one party to, an the receipt by another party of, a sum of money upon an agreement, express of implied to repay the sum with or without interest. XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. Also see XXXX XXXX XXXX, XXXX XXXX XXXX XXXX and United States v. XXXX XXXX XXXX, XXXX XXXX XXXX XXXXXXXX. 
The word money in its usual and ordinary acceptation means gold, silver, or paper money used as a circulation medium of exchange... XXXX XXXX XXXX XXXX XXXX  XXXX, XXXX XXXX XXXX XXXX. 

A promise to pay can not, by argument, however ingenious, be made the equivalent of actual payment... XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX. 

A bank is not the holder in due course upon merely crediting the depositors account. Bankers XXXX XXXX  XXXX, XXXX XXXX XXXX XXXX, XXXX. 

A check is merely an order on a bank to pay money. XXXX XXXX XXXX, XXXX XXXX XXXX. 

Sarbanes-Oxley Act of 2002 - Title I : Public Company Accounting Oversight Board- Establishes the Public Company Accounting Oversight Board ( Board ) to : ( 1 ) oversee the audit of public companies that are subject to the securities laws ; ( 2 ) establish audit report standards and rules ; and ( 3 ) inspect, investigate, and enforce compliance on the part of registered public accounting firms, their associated persons, and certified public accountants. 
Title II : Auditor Independence- Amends the Securities Exchange Act of 1934 to prohibit an auditor from performing specified non-audit services contemporaneously with an audit ( auditor independence ). Requires preapproval by the audit committee of the issuer for those non-audit services that are not expressly forbidden by this Act. 
Title III : Corporate Responsibility- Confers responsibility upon audit committees of public companies for the appointment, compensation, and oversight of any registered public accounting firm employed to perform audit services. Requires an audit committee member to be a member of the board of directors of the issuer, and to be otherwise independent. 
Title IV : Enhanced Financial Disclosures- Requires financial reports filed with the SEC to reflect all material correcting adjustments that have been identified by a registered public accounting firm in accordance with SEC rules and generally accepted accounting principles ( GAAP ). 
Title V : Analyst Conflicts of Interest- Requires the SEC to adopt rules governing securities analysts ' potential conflicts of interest, including : ( 1 ) restricting the prepublication clearance or approval of research reports by persons either engaged in investment banking activities, or not directly responsible for investment research ; ( 2 ) limiting the supervision and compensatory evaluation of securities analysts to officials who are not engaged in investment banking activities ; ( 3 ) prohibiting a broker or dealer involved with investment banking activities from retaliating against a securities analyst as a result of an unfavorable research report that may adversely affect the investment banking relationship of the broker or dealer with the subject of the research report ; and ( 4 ) establishing safeguards to assure that securities analysts are separated within the investment firm from the review, pressure, or oversight of those whose involvement in investment banking activities might potentially bias their judgment or supervision. 
Title VI : Commission Resources and Authority- Authorizes appropriations for FY 2003 to the SEC for : ( 1 ) additional staff compensation ; ( 2 ) enhanced oversight of auditors and audit services ; and ( 3 ) additional professional staff for fraud prevention, risk management, market regulation, and investment management. 
Title VII : Studies and Reports- Mandates a GAO report to Congress on : ( 1 ) the factors leading to the consolidation of public accounting firms and the subsequent reduction in the number of firms providing audit services to businesses subject to the securities laws; and ( 2 ) the impact of such consolidation upon the capital formation and securities markets. 
Title VIII : Corporate and Criminal Fraud Accountability- Corporate and Criminal Fraud Accountability Act of 2002 - Amends Federal criminal law to impose criminal penalties for : ( 1 ) knowingly destroying, altering, concealing, or falsifying records with intent to obstruct or influence either a Federal investigation or a matter in bankruptcy ; and ( 2 ) auditor failure to maintain for a five-year period all audit or review work papers pertaining to an issuer of securities. 
Title IX : White-Collar Crime Penalty Enhancements- White-Collar Crime Penalty Enhancement Act of 2002 - Amends Federal criminal law to : ( 1 ) establish criminal penalties for attempt and conspiracy to commit criminal fraud offenses ; and ( 2 ) increase criminal penalties for mail and wire fraud.

Title X : Corporate Tax Returns- Expresses the sense of the Senate that the Federal income tax return of a corporation should be signed by its chief executive officer. 
Title XI : Corporate Fraud Accountability- Corporate Fraud Accountability Act of 2002 - Amends Federal criminal law to establish a maximum 20-year prison term for tampering with a record or otherwise impeding an official proceeding. 

According to the Securities Exchange act of 1934 In respect of any securities issued by banks and savings associations the deposits of which are insured in accordance with the Federal Deposit Insurance Act, the powers, functions, and duties vested in the Commission to administer and enforce sections 10A ( m ), 12, 13, 14 ( a ), 14 ( c ), 14 ( d ), 14 ( f ), and 16 of this Act, and sections 302, 303, 304, 306, 401 ( b ), 404, 406, and 407 of the Sarbanes-Oxley Act of 2002, ( 1 ) with respect to national banks and Federal savings associations, the accounts of which are insured by the Federal Deposit Insurance Corporation are vested in the Comptroller of the Currency, ( 2 ) with respect to all other member banks of the Federal Reserve System are vested in the Board of Governors of the Federal Reserve System , and ( 3 ) with respect to all other insured banks and State savings associations, the accounts of which are insured by the Federal Deposit Insurance Corporation , are vested in the Federal Deposit Insurance Corporation . 

All securities are Federal and we can go to Federal court to resolve this case, at which point Discover will have to provide all accounting. 


Discover is in breach of the contracts and has not provided anything of value then I am requesting that Discover return all funds that I sent mistakenly including the original amount of the promissory notes due to Fraud and personal damages in the amount of {>= $1,000,000}, remove all negative information on my consumer credit report. 

If you dont comply with the FCRA and the Risk-Based Pricing Rule, you may be sued by the Federal Trade Commission , Consumer Financial Protection Bureau , state governments, or in some cases, consumers. The FCRA provides for maximum penalties of {$4800.00} per violation in the case of lawsuits brought by the FTC.FCRA 616, 617, 621 I am the beneficiary of my trust account. I did not give Discover permission to administer my trust account. Please provide evidence otherwise. 


Thank you for your time with this matter. 

: XXXX XXXX XXXX : XXXX UCC 3-308 Without prejudice Void where prohibited by law.

Company response to consumer: Closed with explanation