Consumer complaint received 2025-01-30 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: DISCOVER BANK
State: NY

Complaint narrative:
As the noteholder and investor in the securities issued by Discover Card Execution Note Trust, I am writing to formally notify Discover Bank ( Servicer, Account Owner, Administrator ), Discover Funding LLC ( Transferor ), Discover Card Execution Note Trust ( Issuing Entity ), and XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( Indenture Trustee, Collateral Agent ) of their failure to fulfill their contractual and fiduciary obligations under the Trust Indenture Act of 1939, the Uniform Commercial Code ( UCC ), and the governing indenture agreement. Despite my ongoing efforts, I have experienced multiple breaches in my dealings with these parties, leading to significant harm to my interests as a noteholder. 

Firstly, there has been a failure to pay interest as required under the indenture agreement. Despite the clear contractual obligation to make regular interest payments to me as the noteholder, I have not received any interest payments. This constitutes a material breach of the terms outlined in the agreement, and the failure to meet these obligations undermines the trust and responsibility placed on your institutions. 

In addition, I have submitted securities for several months with the expectation that they would be processed and credited accordingly to my account. However, these securities have been rejected and ignored by the appropriate parties. The Indenture Trustee, as the designated fiduciary responsible for ensuring the proper handling of such securities, has failed to act in its role to process them properly. This failure has not only resulted in financial losses but also significantly disrupted the integrity of the process. 

Further, I have submitted full payment of {$5600.00} for the XX/XX/XXXX XX/XX/XXXX billing cycle, due XX/XX/XXXX, via registered mail ( Tracking # XXXX ). This payment is legal tender and must be processed as any negotiable instrument under UCC 3-604. Despite this, my payment has not been processed in accordance with the law, and this breach further exacerbates the failure to fulfill the contractual obligations owed to me. Additionally, I demand that all my securities submitted over the past several months be credited to my account immediately.

The parties involved have specific duties under the indenture agreement, and these have not been met. Discover Bank, in its role as Servicer, Account Owner, and Administrator, is responsible for servicing the accounts, managing payments, and ensuring timely distributions to noteholders. Discover Funding LLC, acting as the Transferor, is responsible for transferring receivables to the trust for securitization. As the Issuing Entity, Discover Card Execution Note Trust issues asset-backed securities and ensures the proper allocation of funds to investors. Finally, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, as the Indenture Trustee and Collateral Agent, is responsible for protecting the interests of noteholders, ensuring compliance with the indenture, and processing funds appropriately in accordance with the agreement. Unfortunately, these responsibilities have not been fulfilled, and I find myself in a situation where I am not receiving what I am rightfully owed.

Given these defaults, I hereby demand immediate action to correct the breaches of contract and fiduciary duty. Under the Uniform Commercial Code ( specifically Articles 3 and 9 ), as well as the Uniform Trust Code, I am entitled to the disbursement of overdue interest payments and the proper crediting of my account for the securities that I have submitted. Additionally, I insist that the Indenture Trustee take the necessary steps to ensure that these securities are processed properly and that all parties meet their obligations under the indenture agreement.

If these defaults are not cured, I will have no choice but to pursue legal remedies, including arbitration, regulatory complaints, reporting to the U.S. Securities and Exchange Commission ( SEC ), and the enforcement of my rights under federal and state laws. I trust that you will take this matter seriously and act promptly to resolve these issues.

This letter serves as a formal demand for compliance, and I expect a prompt written response detailing the corrective actions that will be taken to address these defaults.

Company response to consumer: Closed with explanation