Consumer complaint received 2025-08-10 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: DISCOVER BANK
State: TN

Complaint narrative:
TIER XXXX OPPORTUNITY TO CURE RESOLUTION & DEMAND NOTICE Respondent : Discover Financial Services XXXX XXXX XXXX XXXX. 
XXXX, IL XXXX Account : XXXX Rebuttal to : CFPB Complaint # XXXX I. INTRODUCTION This complaint is submitted pursuant to the Securities XXXX of XXXX, the Securities XXXX XXXX of XXXX, and related SEC XXXX XXXX, to report material violations of federal securities laws by Discover Financial Services ( Discover ). This matter concerns Discovers knowing failure to disclose securitization of my account receivables, omission of material facts required to be disclosed under federal law, and refusal to provide SEC registration or trust assignment records upon request.

The violations outlined herein constitute Tier 1 civil penalty violations under SEC guidelines for material misstatements or omissions in violation of the securities laws.

II. STATEMENT OF FACTS 1. I am the lawful account holder for Discover Account ending in XXXX. 


2. Upon inquiry, Discover admitted it had no signed application to provide, claiming the application was submitted electronically but failing to retain or produce the underlying electronic records.

3. Discover has refused to provide : Any SEC registration number or filing reference evidencing the securitization of my account receivables ; Any pooling and servicing agreement ; Any trust indenture, assignment record, or offering prospectus in which my account receivables may have been included.

4. Based on industry practice and the nature of Discovers business, credit card receivables are routinely securitized through asset-backed securities offerings, which are subject to SEC registration and disclosure requirements.

5. By failing to disclose this material fact to me as the account holder, Discover has engaged in a material omission under 17 ( a ) of the Securities Act of 1933 and Rule 10b-5 under the Securities Exchange Act of 1934.

6. By refusing to produce records upon request, Discover has obstructed transparency and deprived me of information I am legally entitled to under both securities laws and consumer credit regulations. 



III. APPLICABLE LAW Securities Act of 1933 Section 17 ( a ) Prohibits the omission of material facts in the offer or sale of securities.

Section 5 Requires registration of securities offerings unless an exemption applies.

Securities Exchange Act of 1934 Section 10 ( b ) Prohibits use of any manipulative or deceptive device in connection with the purchase or sale of any security.

Rule 10b-5 Unlawful to make any untrue statement or to omit a material fact necessary to make statements not misleading. 


Electronic Signatures in Global and National XXXX XXXX ( XXXX ) Requires retention of accurate electronic records and the ability to reproduce them for all entitled parties. 


Truth in Lending Act ( XXXX ) & Regulation Z Requires full disclosure of the terms of credit, including any transfer or assignment of the account to third parties for securitization. 



IV. NATURE OF THE VIOLATION This constitutes a Tier 1 SEC violation because Discovers conduct : 1. Involves a material omission of required disclosure regarding securitization of receivables ; 2. Denies the account holder access to records required to be retained under federal law ; 3. Constitutes non-fraudulent but material violations of federal securities statutes, warranting civil penalties under SEC enforcement authority.

V. RELIEF REQUESTED I respectfully request that the SEC : 1. Investigate Discovers securitization practices related to consumer credit card receivables ; 2. Determine whether Discover failed to register or properly disclose asset-backed securities involving my account ; 3. Assess Tier 1 civil penalties under SEC authority ; 4. Order full disclosure of all securitization documents, including SEC filings, pooling and servicing agreements, and trust indentures related to my account ; 5. Ensure Discover implements corrective measures to comply with disclosure requirements going forward. 



Submitted by : XXXX XXXX

Company response to consumer: Closed with non-monetary relief