Consumer complaint received 2024-11-03 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: GA

Complaint narrative:
I am writing to formally lodge a complaint against Discover Bank regarding their handling of my account and subsequent credit reporting practices, which I believe to be fraudulent, malicious, and in violation of multiple consumer protection laws. 

In early XXXX  Discover Bank closed my account and marked it as charged off. Following this, Discover inaccurately reported the charged-off amount as income to the IRS, leading to significant financial repercussions for me. Despite the closure and charge-off, Discover has continued to report my account as a derogatory account, severely impacting my credit score and overall financial standing. 

As an investor in Discover Bank, I expect a higher standard of transparency and ethical conduct from the institution in which I have invested. In their response to my inquiries, Discover falsely claimed that they are required to continue reporting my account as it is a disputed account. This assertion is incorrect ; the dispute regarding the account was resolved, and it should not be classified as derogatory. Their ongoing reporting practices constitute deceptive practices and are misleading, resulting in financial and emotional harm. 

Furthermore, Discover Bank has shared and sold my personal information to third parties without my consent, violating my right to privacy. I have not received full disclosure regarding the assignments or trades related to my account, particularly concerning its securitization and the potential for trading on the XXXX XXXX. This lack of transparency raises serious concerns about securities fraud and the ethical handling of my financial information. 

I demand the immediate removal of the derogatory information on all credit reports and seek monetary relief for the damages incurred. I am requesting {$10000.00} for mental anguish and damages outside of litigation. Should we be unable to resolve this matter amicably, I will seek {$100000.00} in damages through litigation in a court of law. Additionally, I will not hesitate to file complaints with the Attorney General, IRS, XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ), Federal Trade Commission ( FTC ), and other relevant agencies. 

I believe Discover Banks actions constitute violations of several consumer protection statutes, including : Fair Credit Reporting Act ( FCRA ) : Failure to correct inaccurate information on my credit report ( 15 U.S.C. 1681 ).

Fair Debt Collection Practices Act ( FDCPA ) : Misleading statements and failure to validate the debt ( 15 U.S.C. 1692 ).

Uniform Commercial Code ( UCC ) Article 9 : Failure to provide proper disclosures related to the securitization of my account, which violates my rights as a consumer ( UCC 9-203 ).

Consumer Credit Protection Act : Misrepresentation of the nature and amount of the debt, constituting deceptive practices ( 15 U.S.C. 1601 et seq. ).

Invasion of Privacy : Sharing my personal financial information without proper consent and failing to safeguard my information.

Securities Fraud : Lack of transparency regarding the assignment and securitization of my account, which could involve illegal trading practices. 

I kindly request that the Consumer Financial Protection Bureau ( CFPB ) investigate this matter thoroughly and take appropriate action to rectify the inaccurate and harmful credit reporting practices employed by Discover Bank. The ongoing misinformation is damaging to my credit score and detrimental to my overall financial well-being. 

Thank you for your attention to this matter. I trust that the CFPB will conduct a fair and impartial investigation and work to resolve this issue promptly.

Company response to consumer: Closed with explanation