Consumer complaint received 2025-05-28 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Old information reappears or never goes away
Company: DISCOVER BANK
State: NY

Complaint narrative:
To : Consumer Financial Protection Bureau From : XXXX XXXX Address : XXXX XXXX XXXX XXXX XXXX XXXX  NY XXXX XXXX : XXXX Date : XX/XX/XXXX Subject : Formal Complaint Against Discover Bank Unlawful Reporting of Charged-Off Account in Violation of FCRA and IRS Regulations XXXX of XXXX : XX/XX/XXXX Last XXXX Digits of XXXX : XXXX SUMMARY OF COMPLAINT : This is a formal complaint against Discover Bank for unlawful credit reporting in violation of the Fair Credit Reporting Act ( FCRA ), IRS regulations, and FTC enforcement guidance. Discover is currently reporting an alleged charged-off account on my credit report with ongoing derogatory status updates. This conduct is misleading, inaccurate, and has caused substantial harm to my credit standing. 

XXXX. ONGOING MISREPORTING OF A CHARGED-OFF ACCOUNT Discover continues to report an old charge-off account with monthly updates, falsely presenting the account as actively delinquent or collectible. This misrepresentation is : Factually inaccurate ; Designed to suppress my credit score indefinitely ; A violation of the FCRAs duty to maintain maximum possible accuracy in credit reporting. 

This behavior violates : FCRA 1681e ( b ) Failure to ensure accuracy in furnishing information ; FCRA 1681s-2 ( a ) ( 1 ) ( A ) Prohibition on knowingly furnishing false information ; FCRA 1681s-2 ( b ) Duty to properly investigate disputed information when notified. 

Case Law Support : XXXX XXXX XXXX XXXXXXXX XXXX XXXX, XXXX XXXX XXXX Continuous reporting of a charged-off account in a manner that misleads lenders was found to violate the FCRA. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX Courts held that mischaracterizing the legal status of charged-off debt through repeated updates was deceptive and potentially unlawful. 

2. VIOLATION OF IRS POLICY FORGIVEN DEBT IS NOT A REPORTABLE LIABILITY Under IRS Code 61 ( a ) ( 12 ), a creditor who writes off a debt typically reports the canceled amount as income to the consumer via Form 1099-C. Once a debt is forgiven : It is no longer legally collectible ; It should not continue to be reported as an unpaid obligation on credit reports; Continued updates indicating delinquency violate the intent and spirit of IRS charge-off accounting rules. 

Discovers reporting is therefore materially misleading and improperly portrays a canceled obligation as an active financial liability. 

3. FTC AFFIDAVIT SUBMITTED DELETION REQUIRED WITHIN FOUR DAYS Attached to this complaint is a signed FTC Identity Theft Affidavit, which formally disputes and identifies the Discover charge-off account as inaccurate and harmful.

Per 15 U.S.C. 1681c-2 and FTC guidance , any data furnisher receiving an identity theft affidavit must : Block and delete the disputed item within four ( 4 ) calendar days. 

Cease all future reporting or re-reporting of the disputed item without legal basis. 

Failure to comply constitutes a willful violation of the FCRA, subject to statutory, actual, and punitive damages under FCRA 1681n and 1681o.

4. RELIEF REQUESTED : I respectfully demand that Discover : Immediately and permanently delete the charged-off account from all credit reporting agencies XXXX XXXX XXXX XXXX XXXX XXXX Cease all derogatory and monthly updating of the account ; Provide written confirmation of deletion within ten ( 10 ) business days. 

XXXX. ATTACHED DOCUMENTS : FTC Identity Theft Affidavit naming the Discover charge-off account ; Copy of my valid government-issued license for identity verification. 

CLOSING STATEMENT : Discovers conduct constitutes a violation of federal law and has resulted in financial harm, reputational damage, and undue emotional distress. I request that the CFPB investigate these violations and enforce the appropriate remedies and penalties under the FCRA and related laws. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX NY XXXX XXXX : XXXX XXXX

Company response to consumer: Closed with explanation