Consumer complaint received 2026-03-10 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: DISCOVER BANK
State: NY

Complaint narrative:
To Whom It May Concern, I am submitting this complaint to request assistance regarding Discover Cards handling of a fraud dispute involving unauthorized transactions on my credit card account. Despite reporting the fraud promptly and providing supporting documentation, Discover has repeatedly closed the claim without adequately investigating the matter or resolving the unauthorized charges. Under the Fair Credit Billing Act ( 15 U.S.C. 1666 ) and Regulation Z, consumers are protected from liability for unauthorized credit card transactions and creditors are required to conduct a reasonable investigation when a billing error or fraud claim is reported. In my case, Discover failed to conduct a proper investigation and instead placed the burden on me to obtain information from the merchant. Background On XX/XX/XXXX, my Discover credit card was used fraudulently for a purchase with XXXX XXXX for {$90.00} I immediately reported the fraud to Discover and was instructed to discard the card while a replacement would be issued. I also activated the Discover Freeze/Lock feature * * in the mobile application to prevent further unauthorized activity. On XX/XX/XXXX, I received email notifications from Discover indicating that attempted purchases were blocked because my account was frozen, including two XXXX transactions of {$1400.00} each. Despite the account being frozen and despite Discover notifying me that the purchases were blocked, the charges were later processed and posted to my account. At that time : * My account was locked/frozen * I had not received the replacement credit card * I had not activated any replacement card * I did not authorize the transactions I immediately contacted Discover to report the transactions as fraud. Discovers Investigation Failures Discover opened a fraud claim but repeatedly closed the investigation citing an inability to reach the merchant ( XXXX ). Discover representatives advised that they could not reopen the claim unless I provided additional proof. This position is unreasonable and inconsistent with the requirements of the Fair Credit Billing Act. As the creditor, Discover is responsible for investigating unauthorized transactions and communicating with the merchant network. In order to assist Discover, I personally contacted XXXX multiple times via their customer support chat. XXXX representatives confirmed the following : * The airline tickets were booked fraudulently. * The tickets were cancelled and converted to travel bank credit. * The travel bank account was suspended due to fraud. * XXXX communicated the fraud findings and advised that Discover should process the refund. These communications are documented in the attached screenshots. Despite this information, Discover continued to close the fraud case and repost the charges to my account. In a later communication, Discover also stated that someone called claiming to be me and requested that the account be unfrozen. However, Discover could not explain how this individual successfully verified my identity or why no verification alerts were sent to me. My contact information has never changed, and I received no calls, verification codes, or authorization requests related to unfreezing the account. Financial Harm As a result of Discovers actions : * Fraudulent charges totaling {$1400.00} remain on my account. * My fraud claims have been repeatedly closed without resolution. * I have spent months attempting to coordinate communication between Discover and XXXX myself. * I have continued making minimum payments to avoid damage to my credit while this matter remains unresolved. Discover also issued correspondence stating they considered the transaction valid and would not continue the dispute despite the documentation provided. Security and Account Control Concerns A particularly concerning issue in this case is that the unauthorized transactions were processed while my Discover account was actively frozen using Discovers Freeze/Lock feature, which is specifically marketed to prevent new purchases if a card is lost or compromised. Discover even sent email notifications confirming that the XXXX transactions had been blocked because the account was frozen. However, those same transactions were later processed and posted to my account. This raises serious concerns about Discovers internal controls and the reliability of the account freeze feature that consumers rely on to prevent fraud. Furthermore, Discover later informed me that someone allegedly called and requested that the account be unfrozen. I dispute that I made such a call. Discover has not provided any documentation explaining : * How the callers identity was verified * What authentication methods were used * Why no alerts, calls, or verification notifications were sent to me * Why the account was unfrozen when the mobile application already allows the cardholder to perform that action directly If Discover allowed an unauthorized individual to unfreeze the account without proper identity verification, that represents a serious security failure and should not result in financial liability for the consumer. Requested Resolution I respectfully request that the Consumer Financial Protection Bureau assist in resolving this matter and require Discover to : 1. Conduct a proper investigation of the unauthorized XXXX transactions. 2. Provide documentation showing how my account was allegedly unfrozen and how the callers identity was verified. 3. Coordinate directly with XXXX regarding the confirmed fraud investigation. 4. Remove the fraudulent XXXX charge from my account and reimburse the full unauthorized amount of {$1400.00}. 5. Correct any interest or fees related to the disputed charges. As a consumer who promptly reported fraud, secured my account, and cooperated fully with the investigation, I should not be held financially responsible for unauthorized transactions. I appreciate the CFPBs assistance in ensuring that Discover complies with its obligations under federal consumer protection laws. Sincerely, XXXX XXXX

Company response to consumer: Closed with monetary relief