LAWSUITS NEWS & LEGAL INFORMATION
$200 Million Settlement Agreed for Discover Card Customers
Washington, DC: Discover Bank has agreed to pay $200 million to settle consumer fraud allegations brought by federal investigators concerning credit card add-ons that consumers were led to believe were free.
After a one year investigation into the telemarketing and sales tactics used by Discover agents, federal investigators found that consumers were misled into paying for credit card services including credit score tracking, payment protection, identity theft protection and wallet protection.
The $200 million settlement is in addition to a class action lawsuit settlement of $10.5 million agreed last year by Discover, and a $2 million settlement agreed this year with the Minnesota Attorney General, both of which alleged deceptive marketing practices.
Eligibility for refund would include customers who were charged for one or more of these products between December 1, 2007 and August 31, 2011, and based on the products they purchased and how long they held them. Customers will reportedly be notified directly by Discover Bank.
Additionally, all consumers will receive at least 90 days' worth of fees paid, minus any refunds they have already received. As many as two million customers will receive full refunds of all of the fees they paid.
In addition to the $200 million refund to consumers, Discover will pay a $14 million civil penalty.
To find out more about the settlement, visit the Discover Card Product Settlement at consumerfinance.gov/pressreleases/discover-consent-order/
Published on Oct-5-12
After a one year investigation into the telemarketing and sales tactics used by Discover agents, federal investigators found that consumers were misled into paying for credit card services including credit score tracking, payment protection, identity theft protection and wallet protection.
The $200 million settlement is in addition to a class action lawsuit settlement of $10.5 million agreed last year by Discover, and a $2 million settlement agreed this year with the Minnesota Attorney General, both of which alleged deceptive marketing practices.
Eligibility for refund would include customers who were charged for one or more of these products between December 1, 2007 and August 31, 2011, and based on the products they purchased and how long they held them. Customers will reportedly be notified directly by Discover Bank.
Additionally, all consumers will receive at least 90 days' worth of fees paid, minus any refunds they have already received. As many as two million customers will receive full refunds of all of the fees they paid.
In addition to the $200 million refund to consumers, Discover will pay a $14 million civil penalty.
To find out more about the settlement, visit the Discover Card Product Settlement at consumerfinance.gov/pressreleases/discover-consent-order/
Legal Help
If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.Published on Oct-5-12
