Consumer complaint received 2025-07-02 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: DISCOVER BANK
State: TX

Complaint narrative:
Complaint : Discover Card Mishandling of Fraudulent Charges Merchant Name : XXXXXXXX XXXX XXXX XXXX XXXXXXXX Dispute Amount per Month : {$21.00} Recurring Charge Period : XX/XX/XXXXXXXX XXXXXX/XX/XXXX ( 13 months total ) Total Disputed Amount : {$280.00} I am filing this complaint against Discover regarding a recurring charge of {$21.00} from XXXX XXXX XXXXXXXX XXXX XXXX, which has appeared on my account monthly from XX/XX/XXXX, to XX/XX/XXXX. I did not authorize these charges, nor do I recognize the merchant. I have attempted to dispute this charge with Discover as fraud, but they initially misclassified it as a standard billing dispute. 
Despite my clear statement that I did not authorize these charges and do not recognize the merchant, Discover has refused to label the dispute appropriately as fraud. Their rationale includes the claim that I had viewed the charge online and failed to contact them, and that the merchant provided my name and email as validation. However, this reasoning is flawed my name is part of my email address, and both are publicly accessible. Anyone with access to my compromised card information could have easily obtained this information and used it for fraudulent purposes. 
I called Discover as soon as I noticed the charge. The representative I spoke with was dismissive and implied that I am responsible for the charges because I did not notify them within 30 days and because I am expected to review all my statements monthly. I spend thousands of dollars monthly on this card ; a {$21.00} recurring charge would not easily stand out until I conducted a closer review. 
This handling violates my rights under the Fair Credit Billing Act ( FCBA ), which grants me the right to dispute unauthorized charges ( 15 U.S. Code 1666 ). It also infringes upon my protections under the Truth in Lending Act, specifically Regulation Z ( 12 CFR 1026.13 ), which limits a cardholder 's liability for unauthorized charges to {$50.00}, and zero liability if the cardholder reports the fraud in a timely manner and did not cause or benefit from the fraud.

Discovers refusal to recognize this as fraud and their decision to side with the merchant despite the fraudulent nature of the transaction and the compromised card is unacceptable. I respectfully request that the CFPB assist in enforcing my rights and holding Discover accountable for failing to investigate and resolve this dispute properly. 



Requested Resolution : Classify the charges as fraudulent Issue a full refund of {$280.00} Ensure Discover follows proper procedures under FCBA and Regulation Z Prevent recurrence of similar mishandling for myself or others Award statutory damages of {$1000.00} for violations of my rights under the FCBA Award actual damages as deemed appropriate Award attorneys fees and court costs as permitted by statute Thank you for your attention to this matter.

Company response to consumer: Closed with explanation