Consumer complaint received 2024-11-23 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: NY

Complaint narrative:
Discover card is in violation of multiple laws set forth by Congress in regards to the following account # ] 15 U.S. Code 1681a ( 2 ) ( a ) ( i ) states that the consumer report does not include information solely as to transactions or experiences ( payment history, charge off status ), between the consumer ( myself ) and the person ( Discover Card ) making the report. Additionally, 15 U.S. Code 1681 s-2 ( a ) ( 1 ) ( A ) states that A person ( Discover Card ) shall not furnish any information relating to a consumer ( ME ) to any consumer reporting agency ( XXXX, XXXX, and XXXX ) if the person knows or has reasonable cause to believe that the information is inaccurate. ( Discover Card ) can not collect on a discharged debt. This is now considered a certificate of indebtedness per the IRS and income can not be reported. The IRS Clearly defines a charge off as Gross or Ordinary income, INCOME DOES NOT GET REPORTED ON THE CONSUMER REPORT which in fact makes reporting of this account inaccurate! I provided a screenshot from the IRS website. By Definition, the IRS Clearly says a Cancelled debt or Charge off is Income. The reporting of this account as a debt is inaccurate. I never received a 1099-C from ( Discover Card ) for the cancelled debt in order to file as ordinary income. Where is my 1099-C Discover Card is clearly writing off debt with the IRS without sending out 1099-C as required by the IRS for debts greater than { { {$600.00} } }. This is unsatisfactory! Discover Card has been HEREBY PUT ON NOTICE that they are furnishing incorrect inaccurate information. In Discover Card terms and conditions they agreed not to share my information with non affiliates.XXXX XXXXXXXX and XXXX  they are not an affiliate of Discover Card nor are they " bureaus ''. The only true credit bureau is the CFPB and they DO NOT furnish consumer reports as stated in federal law. I have a right to privacy and Per the Privacy Act of 1974 as a federally protected consumer I am now revoking any and all authorization I the consumer may have given you written, non written, verbal, and nonverbal per 5 U.S. Code 552a. Per the FCRA as a federally protected consumer I am now opting out of any and all authorization I the consumer may have given you written, non written, verbal, and non verbal per 15 USC 6802. I shall also point out their responsibility pursuant 15 U.S. Code section 1681s-2 ( a ) ( 1 ) ( B ) ( ii ) : ( a ) DUTY OF FURNISHERS OF INFORMATION TO PROVIDE ACCURATE INFORMATION 1 ) PROHIBITION ( B ) Reporting information after notice and confirmation of errors A person shall not furnish information relating to a consumer to any consumer reporting agency if ( i ) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate ; and ( ii ) the information is, in fact, inaccurate. Discover Card must also refund the remaining balance of the consumer account upon its termination. This is your 7 day notice to return ALL money due from this consum er account. XXXX Treatment of credit balances ; account termination. ( a ) Credit balances. When a credit balance in excess of { { {$1.00} } } is created on a credit account ( through transmittal of funds to a creditor in excess of the total balance due on an account, through rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for the benefit of the consumer ), the creditor shall : ( 1 ) Credit the amount of the credit balance to the consumer 's account ; ( 2 ) Refund any part of the remaining credit balance within seven business days from receipt of a written request from the consumer ; ( 3 ) Make a good faith effort to refund to the consumer by cash, check, or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than six months. No further action is required if the consumer 's current location is not known to the creditor and can not be traced through the consumer 's last known address or telephone number. ( b ) Account termination. ( 1 ) A creditor shall not terminate an account prior to its expiration date solely because the consumer does not incur a finance charge. ( 2 ) Nothing in paragraph ( b ) ( 1 ) of this section prohibits a creditor from terminating an account that is inactive for three or more consecutive months. An account is inactive for purposes of this paragraph if no credit has been extended ( such as by purchase, cash advance or balance transfer ) and if the account has no outstanding balance. ( c ) Timely settlement of estate debts ( 1 ) General rule. ( i ) Reasonable policies and procedures required. For credit card accounts under an open-end ( not home-secured ) consumer credit plan, card issuers must adopt reasonable written policies and procedures designed to ensure that an administrator of an estate of a deceased accountholder can determine the amount of and pay any balance on the account in a timely manner. ( ii ) Application to joint accounts. Paragraph ( c ) of this section does not apply to the account of a deceased consumer if a joint accountholder remains on the account. ( 2 ) Timely statement of balance ( i ) Requirement. Upon request by the administrator of an estate, a card issuer must provide the administrator with the amount of the balance on a deceased consumer 's account in a timely manner. ( ii ) Safe harbor. For purposes of paragraph ( c ) ( 2 ) ( i ) of this section, providing the amount of the balance on the account within 30 days of receiving the request is deemed to be timely. ( 3 ) Limitations after receipt of request from administrator ( i ) Limitation on fees and increases in annual percentage rates. After receiving a request from the administrator of an estate for the amount of the balance on a deceased consumer 's account, a card issuer must not impose any fees on the account ( such as a late fee, annual fee, or over-the-limit fee ) or increase any annual percentage rate, except as provided by 1026.55 ( b ) ( 2 ). ( ii ) Limitation on trailing or residual interest. A card issuer must waive or rebate any additional finance charge due to a periodic interest rate if payment in full of the balance disclosed. Tax Implications of Charge-Offs : When a debt is charged off, its typically classified as income forgiven by the creditor and may have tax implications. Reporting these accounts inaccurately can further harm consumers. 
Case Law : In XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), the court held that credit bureaus could be held liable if they fail to adequately verify disputed debts before reporting them. 

4. Breach of Consumer Privacy and Data Protection Failures Data Breaches : The XXXX XXXX data breach exposed the personal data of over 147 million people, including Social Security numbers and financial information. Credit bureaus are legally required to protect consumers personal information under data protection standards, and this breach has led to lawsuits and consumer claims for damages. 
Case Law : In XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), the court held that XXXX was liable for damages after mishandling personal data, leading to unauthorized third-party access. This case underscores the legal obligations of credit bureaus to protect consumer data.

Company response to consumer: Closed with non-monetary relief