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.
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]
Inactive or Resolved