Consumer complaint received 2025-08-04 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: DISCOVER BANK
State: NY

Complaint narrative:
XXXX XXXX XXXX, XXXX  Phone : [ Your Phone Number ] Email : [ Your Email Address ] Date : XX/XX/XXXX Discover c/o Discover Customer Relationships XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX Subject : Escalated Complaint Improper Withholding of Federal XXXX  Benefits/ Overdraft Without Consent Dear Discover Customer Relationships Team, I am writing to formally escalate a serious and urgent complaint regarding my Discover Cashback Debit account. 

Since XX/XX/XXXX, I have been receiving Social Security XXXX XXXX ( XXXX  ) benefits in the amount of {$1100.00} via direct deposit, issued by the Social Security Administration on the XXXX of each month. However, not once since XXXX have I seen the full amount of my deposit, due to Discover allowing my account to go negative without my consent and using my incoming federal XXXX funds to cover negative balances of around {$190.00} {$200.00} or more each month. 

I have not enrolled in Balance+ or any form of Overdraft Protection. Based on your own public-facing policy, debit card purchases should be declined if funds are insufficient unless Balance+ is active. Allowing those transactions to process and then using my XXXX benefits to fix the account balance is inappropriate and potentially illegal. 

I want to be clear : - I have been on XXXX since XX/XX/XXXX. 
- I did not opt in to Balance+. 
- My account has gone negative without my approval. 
- Every month since XX/XX/XXXX, Discover has retained a significant portion of my XXXX deposit funds that are federally protected under Regulation E and 31 CFR 212. 

Additionally, according to Discover 's own public-facing policy on Overdraft Protection : If the amount overdrawn from your protected account is not available in your funding account, we will initiate the Overdraft Protection Service to cover as many eligible transactions Transactions where sufficient funds are not available in your funding account will be returned unpaid. 

I have not enrolled in Overdraft Protection or Balance+. Therefore, any debit card transaction that would result in a negative balance should have been declined, per your stated policy. Allowing them to process and then using my Social Security XXXX benefits to bring my account positive appears to be a violation of federal banking protections and your own internal guidelines. 

I am requesting the following : XXXX. A full investigation into how my account was permitted to overdraft each month. 
XXXX. A refund of all withheld XXXX benefits from XX/XX/XXXX to XX/XX/XXXX caused by unauthorized overdrafts or processing errors. 
XXXX. A written explanation of how Discover determines when to apply debit card transactions without sufficient funds if the customer is not enrolled in any overdraft program. 

Please escalate this matter to your compliance and legal team if necessary. I will also be submitting a complaint to the Consumer Financial Protection Bureau ( CFPB ) and, if unresolved, may pursue the matter with legal aid or a financial protection attorney, as I believe this could be a violation of federal protections for benefit recipients. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation