Consumer complaint received 2025-01-13 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: DISCOVER BANK
State: NJ

Complaint narrative:
I am submitting this complaint to address the violations and inaccuracies in the reporting of accounts on my consumer report by various companies. These violations infringe upon my rights as a consumer under federal law and have caused me undue harm. Below, I outline the relevant laws, supporting facts, and my request for corrective action.

1. Inaccurate Reporting of Late Payments Companies have reported late payments on my accounts, in direct violation of 15 U.S.C. 1666b and 15 U.S.C. 1637b. These statutes regulate billing and credit reporting practices, and failure to provide accurate information violates federal law. Moreover, pursuant to 15 U.S.C. 1681a ( 2 ) ( A ) ( i ), transactions and experiences are explicitly excluded from consumer reports. Therefore, the reporting of such information on my consumer report is unlawful and must be deleted immediately.

Additionally, 12 CFR 1026.13 protects consumers from inaccurate billing and requires creditors to respond to disputes with substantiated evidence. The companies reporting these inaccuracies have failed to meet this obligation. 
2. Charge-Offs Reported on My Consumer Report The inclusion of charge-offs on my consumer report violates both consumer protection laws and IRS regulations. According to IRS guidance, charge-offs are treated as taxable income under federal law. Income, as defined under federal statutes, can not be included on consumer reports. Therefore, all charge-offs listed on my report must be deleted as they constitute an unlawful inclusion. 
3. Collections Violations The reporting of collection accounts on my consumer report violates the following statutes : 15 U.S.C. 1692c : Prohibits improper communication of collection accounts to third parties, including consumer reporting agencies, without proper authorization.

15 U.S.C. 1692g : Requires debt collectors to validate debts and ensure the accuracy of the information furnished to third parties.

15 U.S.C. 1681e ( b ) : Mandates that consumer reporting agencies maintain maximum possible accuracy. The collection accounts listed on my report are unverifiable and inaccurate, requiring their deletion.

4. Violations of UCC 3-203 Under UCC 3-203 , the transfer of an instrument does not vest rights in the transferee if the transferor engages in fraud or illegality. It has come to my attention that the companies furnishing this information have transferred my account ( commercial paper bond ) in the secondary market, which violates the Securities Exchange Act of XXXX  and federal law. Such transfers are prohibited without proper negotiation, indorsement, and compliance with legal requirements. The companies have not substantiated their rights to enforce these instruments, rendering their claims and reporting invalid.

5. Violations of Consumer and Investor Rights The inaccurate reporting practices infringe upon my rights as both a consumer and an investor. These companies have acted in bad faith by failing to : Substantiate the validity of the reported debts. 
Disclose material facts about the transfer, securitization, or sale of my accounts. 
Comply with applicable federal and state laws regarding the handling of financial instruments and the furnishing of information to consumer reporting agencies. 
These violations have caused significant harm to my creditworthiness and financial standing. I request prompt action to ensure compliance with the law and the restoration of accurate information on my consumer report. 
Thank you for your attention to this matter. I am available to provide any additional information or documentation required for your investigation. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with non-monetary relief