Consumer complaint received 2025-02-07 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: DISCOVER BANK
State: MI

Complaint narrative:
XX/XX/year> Discover Financial Services Attn : Dispute Department XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX Subject : Dispute of Fraudulent Account and Inaccurate Reporting Request for Immediate Correction Dear Sir or Madam : I am writing regarding my Discover account, Account Number [ XXXX ], which has recently come under dispute due to fraudulent activity. I was notified that fraudulent activity was occurring on my account, and without conducting a proper investigation into these claims, Discover closed the account. Despite the fraudulent nature of this matterand based on the advice of my attorney not to pay any amounts related to this accountDiscover continues to report this account as past due on my credit report. This inaccurate reporting is causing significant harm to my credit reputation. 

I respectfully request that Discover immediately : 1. Conduct a full investigation into the fraudulent activity associated with the account.

2. Refrain from reporting any past-due status or any negative information regarding this account to the credit reporting agencies.

3. Correct the reporting status to accurately reflect that this account is fraudulent and/or closed due to fraud.

Furthermore, I wish to bring to your attention that Discovers actions in this matter may be in violation of several federal statutes and industry standards. In particular, please review the following potential violations : A. Fair Credit Reporting Act ( FCRA ) Violations 1. Failure to Conduct a Reasonable Investigation ( Section 611 ) : By closing the account without a thorough investigation into the alleged fraud, Discover may have failed to meet its obligations under Section 611, which requires a reasonable reinvestigation of disputed information. 2. Failure to Report Maximum Possible Accuracy ( Section
623 ) : Reporting the account as past due when it is fraudulent does not meet the standard of maximum possible accuracy that data furnishers must adhere to under Section 623.

3. Inadequate Notification and Correction : By not updating my credit file to reflect the disputed and fraudulent nature of the account, Discover may be in violation of my rights under the FCRA. 

B. Fair Debt Collection Practices Act ( FDCPA ) Violations ( If Applicable ) ( Please note that FDCPA typically applies to third-party debt collectors. However, if Discover or its affiliated collection department has engaged in any of the following practices, they may be in violation of the FDCPA ) : 1. Misleading or Harassing Communications ( Section 807 ) : Any communication that misrepresents the validity or amount of the alleged debt, or that is harassing in nature regarding this disputed account, may constitute a violation.

2. Failure to Provide Debt Validation ( Section 809 ) : If Discover has failed to provide proper validation of the alleged debt upon my request, this may be a violation of the FDCPA.

C. XXXX XXXX  Reporting Violations 1. Inaccurate Account Status Coding : Under XXXX XXXX data reporting standards, accurate status codes are required. Given that my account is fraudulent and was closed without investigation, it should not be reported as past due. The incorrect coding of this account is not in compliance with XXXX XXXX guidelines for accurate data reporting. 

I request written confirmation within 30 days detailing the steps taken to investigate and correct my account status, along with a copy of any documentation related to the investigation of the alleged fraud. If I do not receive a timely and satisfactory response, I will have no choice but to escalate this matter with the appropriate regulatory authorities. 

Thank you for your immediate attention to this matter. I look forward to your prompt response. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with non-monetary relief