Today, the Consumer Financial Protection Bureau and the FDIC announced that Discover will refund $200 million to their credit card customers for pressuring cardholders into buying expensive payment protection and credit monitoring services. In addition, Discover will pay a $14 million fine.
Refunds will be issued to over 3 ½ million Discover customers customers who were charged for at least one of the products from December 1, 2007 to August 31, 2011.
The regulatory agencies reported the company’s telemarketers misled customers about the programs, enrolled customers without their consent and led customers to believe the products were free. In some instances, the scripts suggested the cardholders would not be charged until after they had reviewed written materials, but the materials arrived after Discover had already charged the customers for the products.
In July, Capital One agreed to pay up to $150 million to two million consumers as a result of the bank’s telemarketers deceptively pushing these same credit monitoring and payment protection services. In addition, Capital One agreed to pay fines of $25 million to the CFPB and $35 million to the Office of the Comptroller of the Currency.
LowCards.com simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card. The LowCards.com Complete Credit Card Index is the most objective and comprehensive resource on the Internet which allows consumers to compare rates for over 1,000 credit cards offered in this country. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for twelve years.
- Capital One Gets Nailed For $210 Million In Fines For Deceptive Marketing
- American Express to Pay $112.5 Million in Fines & Refunds After Lying To Customers
- Bank Of America Ordered To Refund $727 Million For Illegal Marketing Schemes
- Study Finds Credit Card Customers Confused About Terms and Rewards
- How To Stop Receiving Credit Credit Card Offers In The Mail
- Free Online Banking Alerts To Protect You