Consumer complaint received 2025-03-29 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: RI

Complaint narrative:
Case Numbers : XXXX and XXXX I'm seeking assistance with disputes I filed against the merchant WowVegas.com through my Discover Card ( account ending in XXXX ). Despite providing evidence, Discover has disregarded the fact that the merchant operates illegally in my state and locked my account with funds still in it. They appear to have only considered the authorization process without conducting a deeper analysis. Please review : 1. Failure to Deliver Services : Merchant has locked my account without justification, preventing me from accessing or redeeming my funds.

Their claim that " sales are final '' does not absolve them of their obligation to provide access to purchased goods or services. If I can not access my funds due to their actions, the transaction is incomplete and constitutes non-delivery.

2. Illegal Business in Rhode Island : As a XXXX XXXX XXXX XXXX, I must highlight that WowXXXX is unlawful under state law. Rhode Island 's iGaming law ( H6348A ) grants exclusive rights to Ballys Corporation for online casino operations ( 42-61.2-3 ). Any unauthorized gambling-like activity contravenes state regulations ( 11-19-5 ). I did not know they were illegal until my funds were locked and I saw many lawsuits across the country citing similar issues. 

Furthermore, several states, including Connecticut, have issued cease-and-desist orders against sweepstakes casinos like XXXX for operating without proper authorization. 

3. Consumer Protection Under Regulation E : Under the Electronic Fund Transfer Act ( EFTA ) and Regulation E, consumers are entitled to dispute electronic fund transfers involving errors or unauthorized transactions. In this case, XXXX failure to provide access to my account and funds from purchases constitutes an error in service delivery. 

Discover has an obligation under Regulation XXXX to investigate this claim thoroughly and provide a resolution.

4. Precedent from Legal Actions Against Sweepstakes Casinos : Similar platforms have faced class-action lawsuits in multiple states for deceptive practices and operating in violation of state gambling laws. These cases highlight the murky legality of sweepstakes casinos and their failure to adhere to consumer protection standards. 

5. Testimonies from Other Consumers : Numerous complaints from other consumers corroborate XXXX pattern of locking accounts without justification ( as I've shown with attached photos to my original complaint ). These testimonies demonstrate that my experience is not an isolated incident but part of a broader pattern of unethical behavior by XXXX. 

Requested Resolution - I would like Discover to reverse the transactions due to : Violation of state laws regulating online gaming in Rhode Island. Under Rhode Island law ( 11-19-1 ), unauthorized gambling operations are prohibited. This makes XXXX  Terms and Conditions void and they cant argue all sales are final. 
Failure by XXXX to deliver paid services ( locked account preventing access ). 
Breach of terms and denial of access without proper cause. 

Its important to notice that when a business is found to be operating illegally or employing deceptive practices, such locking accounts to prevent withdrawals, enforcing a " no refunds '' policy would simply be inherently unjust. Such clauses should not protect a merchant from the consequences of their unlawful conduct or misleading representations, especially when regulatory guidelines explicitly discourage these practices. 

It is also significant to acknowledge that according to regulatory requirements enforced by the Consumer Financial Protection Bureau ( CFPB ) and the Federal Trade Commission ( FTC ), financial institutions are expected to conduct due diligence on transactions tied to restricted or illegal businesses under XXXX and consumer protection laws.

In alignment with regulatory obligations under Regulation E, Z, the EFTA, and others, Discover is required to conduct a comprehensive investigation that goes beyond the initial consent provided in these transactions and takes into account the evidence of illegality and deceptive practices committed by the merchant. A full investigation should account for all details beyond initial authorization steps, and I hope Discover can take all of this into consideration. 

Alternatively, should my evidence not be enough for Discover to decide in my favor, I respectfully request that if possible this dispute be resolved through binding arbitration. I believe that arbitration would provide a fair, efficient, and cost-effective mechanism for resolving the issues presented herein, allowing for a thorough review of the evidence and ensuring that my rights as a consumer are fully protected.

Company response to consumer: Closed with explanation