Consumer complaint received 2024-08-18 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: IL

Complaint narrative:
DISCOVER BANK is in violation of multiple laws set forth by Congress in regards to the following account # XXXX. 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 BANK ) making the report. Additionally, 15 U.S. Code 1681 s-2 ( a ) ( 1 ) ( A ) states that A person ( DISCOVER BANK ) shall not furnish any information relating to a consumer ( ME ) to any consumer reporting agency ( XXXX, XXXX, XXXX, XXXX, XXXX, XXXX ) if the person knows or has reasonable cause to believe that the information is inaccurate. DISCOVER BANK 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 BANK for the cancelled debt in order to file it as ordinary income. Where is my 1099-C DISCOVER BANK 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 BANK has been HEREBY PUT ON NOTICE that they are furnishing incorrect inaccurate information. In DISCOVER BANK terms and conditions they agreed not to share my information with non affiliates. XXXX, XXXX, and XXXX is not an affiliate of DISCOVER BANK 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 BANK 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 consumer 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 pursuant to paragraph ( c ) ( 2 ) of this section is received within 30 days after disclosure. 



XXXX XXXX  is in violation of the FCRA for reporting a debt without possessing the original contractual agreement with my wet ink autograph. I have never received services or done business with XXXX XXXX at any time for any reason and I do not consent to their account being reported to my credit reports. XXXX XXXX is also in violation of the FDCPA for attempting to collect on a debt without possession of the original wet ink autographed contract. For the record, XXXX XXXX  is Not the holder in due course in accordance with UCC 3-302 which defines the holder as follows. The holder took the instrument ( i ) for value, ( ii ) in good faith, ( iii ) without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series, et al. XXXX XXXX purchased this debt after it had already been declared DEFAULT by the original Creditor XXXX XXXX  which means the purchase was not in Good Faith. Furthermore, UCC 3-302 states a person does not acquire rights of a holder in due course of an instrument taken ( i ) by legal process or by purchase in an execution, bankruptcy, or creditor 's sale or similar proceeding, ( ii ) by purchase as part of a bulk transaction not in ordinary course of business of the transferor, or ( iii ) as the successor in interest to an estate or other organization. XXXX XXXX acquired this debt by legal process or purchase of execution which further validates the fact that XXXX XXXX did NOT acquire the rights of the Holder in due course and ALL collection attempts and reports to my credit report are VIOLATIONS of federal law and XXXX XXXX must DELETED FROM ALL CREDIT REPORTS AND MUST CEASE ALL COLLECTION ATTEMPTS. As Per the Federal Credit Reporting Act as a federally protected consumer, in accordance with 15 USC 6802 et al I am now OPTING OUT of ANY AND ALL authorization I, the consumer may have given to XXXX XXXX  written, unwritten, verbal or non verbal to report my nonpublic personal information. XXXX XXXX is in violation of the Privacy Act of 1974 as well as 12 CFR 1022.24 Reasonable opportunity to opt out because I was never notified by XXXX XXXX that my nonpublic personal information was going to be shared to non affiliated third parties such as the credit agencies and I was NEVER GIVEN THE CHANCE TO OPT OUT. Also, 15 USC 6508 states that I have the option to opt out of any account reported to my credit report and I am supposed to receive an opt out notice every thirty ( 30 ) days which XXXX XXXX never sent to me. I am hereby exercising my rights under 16 CFR 313.7 Form of opt out notice to consumers. According to 15 USC 6802 B ) I am supposed to receive THREE different disclosures before my nonpublic personal information is shared but I never received notice. I am hereby invoking all rights under to OPT OUT and to Privacy protected by 15 USC 6802 B, 12 CFR 1022.24, 15 USC 6508, 16 CFR 313.7, the Privacy Act of 1974 et al. To conclude, the above listed credit reporting agencies are in violation of 15 USC 1681 sec 604a section 2, because it states that a Consumer reporting agency can not furnish an account w/o my written instruction. I did NOT give consent nor written instruction to the credit agencies to report the XXXX XXXX  account and supporting nonpublic personal information such as the transaction history and balance. Also, The credit reporting agencies are in violation of 15 USC 1681 sec 604a section 2, because it states that a Consumer reporting agency can not furnish an account w/o my written instruction. I did NOT give consent nor written instruction to report my nonpublic personal information. 

XXXX XXXX XXXX IS INACCURATELY REPORTING ON MY CREDIT REPORTS. The account is NOT in repossession. The account is closed, the car was sold, and recorded as a charge off. XXXX XXXX XXXX is violating the sections of 15 USC : 15 USC 1681e ( b ) : The information provided to consumers is inaccurate, misleading, or incomplete. 15 USC 1681i ( XXXX ) : Failure to conduct a reasonable investigation into disputed information. 15 USC 1681 ( a ) : The inaccurate and misleading information contained in the credit report violates the FCRA 's requirement for fair and accurate reporting. 15 USC 1681 ( a ) : The failure to investigate and correct these inaccuracies within a reasonable time frame is a violation of the FCRA. 15 USC 1681s-2 ( a ) ( XXXX ) : Furnishing information to a consumer reporting agency without the consumer 's written instructions. 15 USC 1681n : You have failed to provide me with clear and conspicuous notice of my rights under the FCRA. his 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 XXXX XXXX XXXX for the cancelled debt in order to file it as ordinary income. Where is my 1099-C XXXX XXXX XXXX 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! XXXX XXXX XXXX has been HEREBY PUT ON NOTICE that they are furnishing incorrect inaccurate information. In XXXX XXXX XXXX  terms and conditions they agreed not to share my information with non affiliates. XXXX, XXXX, and XXXX is not an affiliate of XXXX XXXX XXXX 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. XXXX XXXX XXXX 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 consumer 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. 


ALL ACCOUNTS INCLUDING XXXX XXXX XXXX, DISCOVER BANK, ARE VIOLATING MY RIGHTS. 15 USC 1681 Accuracy and fairness of credit reporting : The Congress makes the following findings : ( 1 ) The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system. ( 2 ) An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers. ( 3 ) Consumer reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers. ( 4 ) There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumers right to privacy. ( b ) Reasonable procedures It is the purpose of this subchapter to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this subchapter.

Company response to consumer: Closed with non-monetary relief