Consumer complaint received 2025-12-14 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: CA

Complaint narrative:
Formal Complaint Credit Card Dispute Mishandling, Fraudulent Vehicle Warranty, and Failure to Provide Consumer Protections ( Discover Card ) I am submitting this formal complaint to request CFPB review and intervention regarding Discover Cards failure to properly investigate and resolve a fraudulent transaction involving a vehicle warranty purchased in XX/XX/year>. Despite repeated disputes and supporting explanations, Discover has refused to remove the charge or reimburse my account, repeatedly siding with the merchant without addressing the underlying fraud. 

Background of the Transaction In XXXX, I purchased a vehicle warranty from a third-party merchant that was marketed and represented as providing meaningful coverage for vehicle repairs. After purchase and upon attempting to use the warranty, I discovered that the warranty does not cover any meaningful repairs, and the exclusions are so extensive that the product is effectively worthless.

The warranty was misrepresented at the point of sale, and had I been accurately informed of the exclusions and lack of coverage, I would never have authorized the transaction. This constitutes deceptive and unfair business practices.

Fraudulent Nature of the Warranty The warranty appears to be intentionally structured to give consumers the false impression of coverage while denying claims in practice. The exclusions negate the core purpose of the product, rendering it unusable and misleading. This meets the standard definition of consumer fraud, as the product provided does not match what was advertised or promised.

Discover Cards Failure to Protect the Consumer I promptly contacted Discover Card to dispute the charge once the fraud became apparent. Since that time : I have repeatedly requested chargeback protection I have explained that the product is misrepresented and nonfunctional Discover has refused to remove the charge Discover continues to side with the merchant without addressing the deceptive nature of the warranty Discover has failed to provide a meaningful explanation for denying the dispute beyond generic responses Discovers actions suggest a failure to conduct a fair and reasonable investigation, as required under the Fair Credit Billing Act ( FCBA ) and applicable consumer protection regulations.

Violations and Consumer Harm Discovers refusal to correct this fraudulent charge has caused : Financial harm Loss of consumer trust Ongoing stress and time spent attempting to resolve an issue that should have been handled through proper dispute procedures Credit card issuers are required to protect consumers from fraudulent and misrepresented transactions. Discovers conduct appears to violate its obligation to act in good faith during billing disputes and undermines the purpose of federal consumer protection laws.

Requested Resolution I respectfully request that the CFPB : 1. Investigate Discover Cards handling of this dispute 2. Require Discover to reverse the fraudulent charge and reimburse my account 3. Review the merchants warranty practices for deceptive conduct 4. Ensure Discover complies with proper dispute investigation standards going forward Conclusion This matter reflects a serious breakdown in consumer protections. I acted promptly and in good faith, yet Discover has failed to provide relief despite clear indicators of fraud and misrepresentation. I am requesting CFPB oversight to ensure accountability and enforcement of consumer protection laws.

Thank you for your time and attention to this matter. I am prepared to provide dispute correspondence, and transaction records upon request.

Company response to consumer: Closed with explanation