Consumer complaint received 2025-09-25 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: DISCOVER BANK
State: MI

Complaint narrative:
I am filing this complaint against Discover Personal Loans for violating the Fair Credit Reporting Act ( FCRA ) by continuing to furnish inaccurate and misleading information about my personal loan account XXXX XXXX XXXX XXXX XXXX XXXX per IRS transcript ) to the consumer reporting agencies ( CRAs : XXXX XXXX XXXX  ). Despite issuing a Form XXXX to the IRS indicating the debt was canceled on XX/XX/XXXX, with {$5300.00} XXXX and {$320.00} in interest forgiven ( as shown in my attached IRS XXXX  and XXXX Transcript for tax year XXXX ), Discover is still reporting this account as " charged off '' as of XX/XX/XXXX with a past due balance of {$5300.00} and negative payment history. This is inaccurate, as the debt was XXXX months earlier, and it is severely damaging my XXXX XXXX, ability to obtain credit, and causing emotional distress. 

I previously raised concerns about this account in CFPB complaint XXXX XXXXXXXX filed on XX/XX/XXXX ( attached ). Discover provided an interim response on XX/XX/XXXX, stating they were investigating, but their final response dated XX/XX/XXXX ( attached, enclosed in XXXX XXXX 's letter dated XX/XX/XXXX ), failed to address the XXXX evidence at all. Instead, they reiterated that the account charged off on XX/XX/XXXX, with a balance of {$5300.00} and claimed accurate reporting, ignoring the subsequent debt cancellation reported to the IRS on XX/XX/XXXX. Meanwhile, my XXXX  report ( dispute results attached, generated XX/XX/XXXX ) shows the account updated with a charge-off status from XX/XX/XXXX onward, XXXX  days late in XXXX, XXXX in XXXX, and XXXX in XXXX XXXXcontradicting the post-charge-off cancellation. 

Under the FCRA, 15 U.S.C. 1681s-2 ( a ), furnishers like Discover must not report information they know or have reasonable cause to believe is inaccurate. The XXXX issuance under IRS regulations XXXX XXXX XXXX XXXX ) provides XXXX XXXX evidence of an actual debt discharge ( Identifiable Event Code " XXXX  '' for other actual discharge ), rendering any subsequent reporting of an outstanding balance or charge-off incomplete and misleading under FCRA 1681e ( b ). Courts have held that XXXX reporting of a balance can violate FCRA, as in XXXX XXXX XXXX XXXX XXXX XXXX  ( XXXX. XXXX. XXXX ), where a XXXX evidenced cancellation, supporting an FCRA claim for failure to correct. Additionally, under FCRA 1681s-2 ( b ), after my dispute via XXXX  ( which forwarded it to Discover ), they were required to conduct a reasonable investigation within XXXX  days, delete or correct inaccuracies, and update the XXXXbut the report remains erroneous, and their response ignored key evidence. This may also violate the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692e, by misrepresenting the debt 's status post-discharge. 

I have suffered damages, including denied credit, higher interest rates, and stress from this unresolved issue.

Company response to consumer: Closed with explanation