Discover Bank is refunding approximately $200 million to more than 3.5 million customers under a joint enforcement action by the Federal Deposit Insurance Corp. and the Consumer Finance Protection Bureau. Discover will also pay a $14 million civil money penalty, with half going to the U.S. Treasury and half to the CFPB’s civil penalty fund. The action is the end result of an investigation launched by FDIC last year, which the CFPB later joined. They were targeting what they described as deceptive telemarketing and sales tactics.
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Discover Bank Pays Up to Settle Deceptive Marketing Charges
Posted by: Erika Morphy September 25, 2012 05:00 AMDiscover Bank is refunding approximately $200 million to more than 3.5 million customers under a joint enforcement action by the Federal Deposit Insurance Corp. and the Consumer Finance Protection Bureau. Discover will also pay a $14 million civil money penalty, with half going to the U.S. Treasury and half to the CFPB’s civil penalty fund. The action is the end result of an investigation launched by FDIC last year, which the CFPB later joined. They were targeting what they described as deceptive telemarketing and sales tactics.