Consumer Bureau Action Tracker

CFPB – Discover Bank


State

Nationwide

target

Discover Bank

Topics

Enforcement, Add-On Products, Credit Cards

In September 2012, the CFPB and FDIC issued a consent order to Discover Bank for misleading and pressuring customers into purchasing add-on products. Discover was ordered to refund $200 million to approximately 3.5 million customers for allegedly enrolling customers in programs “without their consent, misled them about the benefits and left customers thinking the products were free.” Discover also agreed to pay a $14 million fine.

  • The CFPB in a joint effort with the FDIC ordered Discover to refund $200 million to more than 3.5 million customers for deceptive marketing tactics of payment protection and other add-on products sold with its credit cards.

Discover agreed to pay $200 million to its customers for pressuring them to “buy costly add-on services like payment protection and credit monitoring.” Discover’s call-center workers allegedly “enrolled customers in the programs without their consent, misled them about the benefits and left customers thinking the products were free.”

As part of the agreement, Discover also paid a $14 million fine. [“Fed Order Discover To Refund $200M To Cardholders,” Associated Press, 09/24/12]

Status

Inactive or Resolved


2012-CFPB-0005 9/24/2012 9/24/2012

FDIC and CFPB Order Discover to Pay $200 Million Consumer Refund for Deceptive Marketing
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/discover-bank/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $214,000,000
  • 3,500,000

Close

SITE ARCHIVED

Allied Progress is now Accountable.US. This website will no longer be updated and has been permanently archived. For the latest accountability and transparency updates, please visit us at Accountable.US.