Discover Sued in Fake Credit Card Agreement Class Action Lawsuit

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A class action lawsuit has been filed against Discover Bank in New York federal court, alleging the company employs fraudulent credit card agreements in order to collect money from their cardholders in court. This is the second time Discover has been sued in court for fraudulent cardholder agreement allegations.

Plaintiff Lizette DiResta claims that during a collection action, Discover used a fake credit card agreement against her and claimed that this fraudulent cardholder agreement was in fact her credit card contract.

DiResta is not the first plaintiff to claim that Discover uses fake credit card agreements in collection actions against cardholders. Back in 2012, the case Elinich v. Discover Bank, et al. was filed in Pennsylvania federal court, though it was later dismissed  by plaintiff Elinich.

According to the new Discover fake credit card agreement class action lawsuit, “Defendant Discover Bank, by its own hand, knowingly committed fraud and/or deceptive practices. It would seem to have raised troubling issues relating to its conduct that it kept doing even after it was challenged on it in the Elinich v. Discover Bank class action litigation.”

DiResta began using Discover Bank back in 1998. According to the Discover class action lawsuit, that charges the company brought against DiResta in a collection action were for an alleged debt accrued between 2005 and 2011. She claims that Discover Bank was granted summary judgment in their action against her because they used a cardholder agreement, dated Jan. 11, 2011, identical to the one used by Discover in the Elinich v. Discover Bank case.

DiResta’s false cardholder agreement class action lawsuit alleges that the cardholder agreement produced by Discover in both court actions were both dated Jan. 11, 2011, and allegedly printed at 9:52 a.m. In the previous Discover class action lawsuit, Elinich had claimed that the company uses this exact same agreement in every Discover collection action they bring against consumers across the nation.

According to DiResta’s Discover false cardholder agreement class action lawsuit, “Clearly that document was knowingly mass-produced for use in litigation in general like an impermissible ‘one-size fits all’ template, which admits its inapplicability and knowingly fraudulent misuse in the Other Action against the Plaintiff by Defendant Discover Bank, and others nationally, upon information and belief.”

Elinich’s fake credit card agreement class action lawsuit was already in litigation when Discover brought a similar collection action lawsuit against DiResta. The plaintiff of the new Discover class action lawsuit claims Discover was aware their actions were under legal scrutiny, but continued to employ these allegedly fraudulent business practices against DiResta anyway.

Discover Bank also allegedly used “robosigned” affidavits, which the false cardholder agreement class action lawsuit compares to other national robosigning scandals involving JPMorgan Chase & Co. , which the company settled in March of this year.

DiResta is represented by Timothy DiResta of DiResta Law Group.

The Discover Fake Credit Card Agreement Class Action Lawsuit is Lizette DiResta v. Discover Bank, Case No. 155611-2015, in the in the Supreme Court of the State of New York, County of New York.