Consumer complaint received 2025-04-11 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: DISCOVER BANK
State: CA

Complaint narrative:
To Whom It May Concern, I, XXXX XXXX, am submitting this formal complaint against Discover ( hereinafter referred to as " Discover '' ) for the willful and negligent reporting of inaccurate and misleading information regarding an account on my credit report. Despite clear evidence that the debt associated with this account has been discharged, Discover continues to report this account as delinquent with an outstanding balance of {$5000.00}. This conduct violates my rights under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681n, which mandates that all consumer reporting be both accurate and fair. 

Background : Account Information : Creditor Name : Discover Account Number : XXXX Reported Balance : {$5000.00} Account Status : Charge-off, as reported on my credit file Date of Charge-off : As per creditor 's records Debt Cancellation Documentation ( Form XXXX ) : Discover issued a Form XXXX on XX/XX/year>, indicating that the full debt amount of {$5000.00} was discharged. This Form explicitly states that the debt was forgiven under the IRS guidelines for bad debt. The cancellation of debt removes any outstanding obligation to the creditor, rendering any future attempts to report this as an active, delinquent balance invalid. 

The Form 1099-C serves as definitive proof that the debt was legally discharged and should no longer appear as outstanding on my credit report. 

Discovers Actions : Despite submitting the Form XXXX along with a formal dispute regarding the inaccuracy, Discover has continued to report this account as an active charge-off with a balance of {$5000.00}. The failure to correct this reporting after receiving proper documentation reflects negligence and a disregard for their legal obligations under the FCRA. 

Discover 's failure to conduct a reasonable investigation into the dispute further underscores its willful negligence. 

Legal Violations : Violation of 15 U.S.C. 1681e ( b ) Accuracy of Information : Under 15 U.S.C. 1681e ( b ), Discover is required to maintain and enforce procedures to ensure the accuracy of all information reported. By continuing to report the account with an outstanding balance of {$5000.00}, Discover is in clear violation of its duty to provide accurate information to credit reporting agencies. 

Violation of 15 U.S.C. 1681i ( a ) Reasonable Investigation of Disputed Information : According to 15 U.S.C. 1681i ( a ), Discover is required to conduct a reasonable investigation into disputed information. The ongoing inaccuracy in reporting, despite my submission of evidence, indicates a failure by Discover to meet this obligation. This constitutes a direct violation of the FCRA.

Violation of 15 U.S.C. 1681n Willful Noncompliance : The continued reporting of an incorrect balance, despite clear evidence that the debt was discharged, represents willful noncompliance under 15 U.S.C. 1681n. As a result, I am entitled to statutory damages of {$1000.00}, in addition to any punitive damages that may be assessed for the harm caused by Discovers misconduct.

Harm Caused : The erroneous reporting of this account has caused significant harm to my credit profile, including : Adverse Impact on Creditworthiness : The reported charge-off of {$5000.00} has adversely impacted my credit score, resulting in the denial of credit and less favorable terms when applying for financial products. 

Increased Financial and Emotional Stress : The continued erroneous reporting has caused considerable emotional distress, including anxiety over potential financial consequences due to inaccurate credit reporting. 

Resources Expended in Dispute Resolution : Time, effort, and financial resources have been spent disputing this erroneous charge-off, diverting my attention from other important financial matters.

Company response to consumer: Closed with non-monetary relief