The first Consumer Financial Protection Bureau’s (CFPB) public enforcement lawsuit was just months ago when the CFPB announced Capital One was to refund $140 million to customers and pay an additional $25 million penalty for also using deceptive marketing practices to mislead cardholders into buying extra products.
Now, another investigation held by the CFPB and the Federal Deposit Insurance Corporation (FDIC), Discover Financial Services and, its subsidiary, Discover Bank agreed to refund over two hundred million dollars to customers and cardholders whom were misled by deceptive telemarketing strategies. The CFPB and FDIC stated that Discover’s deceptive language and unclear and misleading information convinced cardholders to purchase additional products such as payment protection, identity theft protection, and credit score tracking. Further, the CFPB and FDIC found that customers were deceived to agree to the add-ons or were even signed up with no consent at all. Telemarketers used tactics such as downplaying key terms or speaking quickly on pricing which misled customers the services required additional payments, the CFPB and FDIC said.
Discover cardholders that purchased additional protection products over the phone from December 2007 to August 2011 can receive at least 90 days of fees credited back to the account. The amount depends on when the products were bought and for how long they paid. In addition, the CFPB and FDIC has said that Discover has agreed to revise their telemarking practices to stop all deceptive language when soliciting to cardholders.
Evans Law Firm, Inc. represents victims of bank fraud, consumer fraud, and annuities fraud. If you feel you have been defrauded or deceived by a bank or insurance company in California, contact Evans Law Firm, Inc. at 415-441-8669 or e-mail firstname.lastname@example.org for a free and confidential consultation.