Consumer complaint received 2025-01-09 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: DISCOVER BANK
State: CA

Complaint narrative:
Demand Letter of Declaration : Discover Bank 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 XXXX Subject : Notification of Legal Action and Demand for Accountability To Whom It May Concern, This letter is a declaration that Discover Bank will face regulatory complaints, criminal investigation, and legal action for systemic violations of federal laws, blatant non-compliance, and fraudulent practices. Your actions have resulted in irreparable harm to consumers, including myself, and constitute serious offenses that warrant severe legal consequences beyond monetary penalties. 
Your refusal to comply with legal requirements to issue IRS XXXX XXXX for canceled debts reflects an intentional and organized scheme to commit tax evasion and deprive taxpayers and the government of transparency. This practice, compounded by false credit reporting and systemic stalling tactics, is evidence of a widespread criminal enterprise that must result in prosecution and dissolution. 
Key Violations and Criminal Consequences 1. Failure to Issue IRS Form XXXX A Federal Offense : Discover Bank has failed to issue XXXX forms for charged-off debts, including the disputed account ( # XXXX ). Under 26 U.S.C. 6050P, financial institutions are required to report debt cancellation exceeding {$600.00}. This non-compliance reveals a deliberate effort to evade federal tax laws and conceal off-balance transactions, creating massive discrepancies that would be evident through even basic IRS audits .

2. Racketeering and Organized Crime Violation of RICO Act : Discover Banks repeated transfer of charged-off accounts to third parties, combined with deliberate stalling and refusal to resolve disputes, demonstrates a pattern of racketeering activity under 18 U.S.C. 1962. This systemic misconduct rises to the level of criminal enterprise, warranting criminal prosecution and civil dissolution of Discover Bank as an institution.

3. Systemic Fraudulent Practices A Consumer Betrayal : Discover Bank has intentionally and repeatedly misrepresented the status of this debt on my credit reports, creating barriers to credit access and halting my financial advancement.

Over years of disputes, Discover Bank has engaged in deceptive tactics, including extending deadlines, refusing to provide documentation, and allowing the debt to reappear on reports despite its resolution.

4. IRS and Regulatory Oversight Failure Exposing Systemic Collusion : The absence of 1099-C filings is not just a reflection of Discover Banks malfeasance but an indictment of systemic regulatory oversight failures. It is evident that neither Discover Bank nor the IRS has properly audited the submission and collection of these forms. This blatant gap raises the question : Why have these discrepancies not triggered audits or red flags? A review of Discovers Standard Operating Procedures ( SOPs ) will expose whether this systemic fraud extends beyond my account and affects millions of consumers nationwide.

Demand for Immediate Criminal Accountability Discover Bank must be held criminally liable for its deliberate and organized actions. Monetary fines alone will not suffice. Criminal consequences must include : Prosecution of executives and decision-makers responsible for systemic violations.

Civil incarceration under the RICO Act for racketeering activities.

Dissolution of Discover Bank as an institution to serve as an example to creditors engaging in similar illegal practices.

Immediate Demands for Action To mitigate further legal and criminal consequences, I demand : 1. Immediate deletion of the disputed account from all credit reporting agencies. 
XXXX. Issuance of a XXXX form for the charged-off debt in compliance with federal law. 
XXXX. Full disclosure of all account-related records, including SOPs, documentation of third-party sales, and internal communications. 
Failure to comply with these demands will result in the immediate escalation of complaints to the Department of Justice ( DOJ ), the IRS, the Consumer Financial Protection Bureau ( CFPB ), and State Attorney Generals Offices. Subpoenas will be sought to access Discover Banks internal records, exposing the systemic scale of fraud. 
Discover Bank must understand that it will not escape accountability. The practices uncovered in this case will serve as a precedent to expose and dismantle similar fraudulent operations across the financial industry. Your systemic non-compliance, deliberate concealment, and intentional harm to consumers can not and will not be tolerated. 
Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX XXXX XXXX

Company response to consumer: Closed with explanation