Discover Bank announced it will pay about $200 million in refunds to cardholders who bought certain credit-protection products over the phone as part of an agreement with the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB).
The $200 million is in addition to a $10.5 million class action lawsuit settlement Discover agreed to last year, and a $2 million settlement reached earlier this year with the Minnesota Attorney General — all over the same alleged “deceptive marketing” practices.
Federal regulators conducted a year-long investigation into telemarketing and sales tactics used by Discover agents that misled consumers into paying for credit card “add-on products” they thought were free. These services included credit score tracking, payment protection, identity theft protection and wallet protection.
Discover card customers who were charged for one or more of these products between December 1, 2007 and August 31, 2011 will be eligible for a refund based on the products they purchased and how long they held them.
Find all the details HERE.