Consumer complaint received 2026-01-22 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Can't stop withdrawals from your account
Company: DISCOVER BANK
State: TX

Complaint narrative:
Formal Complaint Regarding Discover Banks Failure to Comply With Federal BillingError and Electronic Transfer Regulations Consumer : XXXX XXXX XXXX : Discover Bank Account Type : Discover Credit & Debit Accounts Merchant in Question : XXXX Credit Recurring Charge : {$69.00} Date Range : Early XXXX Present -- - Summary of Complaint I contacted Discover on XX/XX/XXXX of XXXX to dispute a recurring transaction. 

I am filing this complaint because Discover Bank has repeatedly refused to investigate or resolve a valid billing error involving recurring charges from XXXX Credit for goods/services that were never received, despite my repeated attempts to resolve the matter directly with both the merchant and Discover. Discover has incorrectly stated that they are governed by different regulations that prevent them from filing claims for nonreceipt of goods or services. This is factually and legally incorrect under the Fair Credit Billing Act ( FCBA ) and Regulation Z, which explicitly protect consumers in cases where goods or services were not delivered as agreed. 

In addition, Discover has demonstrated ongoing service failures related to debitcard functionality, online account access, XXXX registration, and prior dispute handling. These failures collectively indicate a pattern of noncompliance with federal consumerprotection standards and a failure to provide reliable access to my own funds. 

-- - XXXX. Failure to Investigate a Valid Billing Error ( FCBA / Regulation Z ) Since early XXXX, my Discover account has been charged {$69.00} monthly by TOMO Credit. I have never received any product, service, or benefit from these charges. 

In XX/XX/XXXX, XXXX Credit informed me directly that the product I ordered had been discontinued, yet they continued to charge my account. The merchant has not responded to my refund requests.

When I contacted Discover Bank : I informed them that the merchant confirmed the product was discontinued.

I stated clearly that I never received goods or services.

I requested a dispute under the FCBA.

Discover refused, stating they are governed by different regulations that prevent disputes for nonreceipt of goods/services. This is incorrect. Under the FCBA and Regulation Z, nonreceipt of goods/services is a protected billingerror category, and Discover is required to : Accept and acknowledge my dispute in writing within 30 days Conduct a reasonable investigation within 90 days Provide a written explanation of findings Discover did none of these.

They also failed to offer : A dispute A stoppayment on the recurring charge A replacement card/device to prevent further unauthorized debits This constitutes a violation of 15 U.S.C. 1666 and 12 CFR 1026.13.

-- - 2. Failure to Provide Required Protections for Electronic Transfers ( EFTA / Regulation E ) Discovers refusal to stop recurring charges and their failure to provide dispute rights also implicate the Electronic Fund Transfer Act ( EFTA ) and Regulation E, which require : Investigation of unauthorized or erroneous electronic fund transfers Ability to stop recurring transfers upon request Timely resolution of consumer error notices Discover did not comply with these obligations.

-- - 3. Systemic Service Failures Affecting My Ability to Use My Account A. Debit Card Inoperability and Lack of Support On multiple occasions, I have been unable to use my Discover debit card for routine transactions. When I contacted Discover for assistance, the only options provided were : Try again later, or Use a different card not associated with your Discover account.

This is unacceptable and demonstrates a failure to provide reliable access to my own funds. Discover did not offer : A replacement card A device reset A fraudcheck override Any meaningful troubleshooting This pattern of nonfunctioning debitcard access materially impacted my ability to conduct everyday transactions and raises concerns about Discovers compliance with EFTA, which requires financial institutions to ensure consumers can access their accounts and report errors effectively.

-- - B. Online Access Failures There have been multiple periods where I could not access my Discover account online. When I contacted Discover, I was told the only option was to wait. No alternative access method or remediation was offered.

-- - C. Zelle Registration Issues For nearly XXXX years, I was unable to register for XXXX through Discover. When I reported this, Discover repeatedly told me to keep trying, despite the issue being on their end. Only after Discovers merger with XXXX XXXX did XXXX suddenly appear as an available option. 

This prolonged inability to use a standard moneymovement service is a service failure that materially impacted my ability to manage my account.

-- - D. Prior Disputes for NonReceipt of Goods In previous instances where goods/services were not received, Discover again stated they were subject to different regulations and could not file claims. This appears to be a pattern of misrepresenting federal law and denying consumers their dispute rights. 

-- - XXXX. Requested XXXX I respectfully request that regulators require Discover Bank to : XXXX. Reopen and properly investigate the XXXX Credit charges under FCBA and Regulation Z.

2. Issue a full refund for all XXXX XXXX charges where no goods/services were received. 
XXXX. Cease all future recurring charges from XXXX Credit.

4. Provide written confirmation of the investigation and findings as required by law.

5. Review and correct internal policies that misstate federal regulations to consumers.

6. Address systemic service failures, including debitcard inoperability, online access issues, and XXXX registration problems.

7. Ensure compliance with FCBA, EFTA, Regulation Z, and Regulation E going forward.

Statement Regarding Retaliatory Conduct by Discover Bank After I notified Discover Bank that their refusal to process my dispute appeared to violate the Fair Credit Billing Act ( FCBA ) and Regulation Z, Discover took adverse action against me by disabling my online account access shortly thereafter. This sudden loss of access occurred only after I raised concerns about potential regulatory violations. As a result, I was unable to view my account, monitor transactions, or manage my finances, which caused additional stress, confusion, and negative financial impact. This sequence of events gives the appearance of retaliation for asserting my federally protected dispute rights and further demonstrates Discovers failure to provide reliable, uninterrupted access to my account. 

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Company response to consumer: Closed with explanation