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Discover Card Product Class Action Settlement

By Kimberly Mirando

 

Discover cardDiscover Financial Services has reached a $10.5 million class action lawsuit settlement over allegations it duped its customers into signing up for the fee-based products: Discover Payment Protection (formerly known as Discover AccountGuard), Identity Theft Protection (formerly known as Profile Protect), Wallet Protection (formerly known as The Register), and Credit Score Tracker. As a result, consumers who were enrolled in one of these products between 2004 and 2011 may be eligible to receive up to $30 from the Discover product class action settlement.

The proposed Discover settlement will resolve eight class action lawsuits filed across the country that were consolidated in February 2011 into In Re: Discover Payment Protection Plan Marketing and Sales Practice Litigation. The allegations in the Discover Payment Protection class action lawsuit include, among other things, that:

(1) Consumers were enrolled in Products without their consent;
(2) Discover and its sales agents misrepresented and omitted material facts regarding the cost of the Products;
(3) Discover and its sales agents misled consumers by hiding the true nature of telemarketing calls and misrepresenting that consumers would receive promotional materials prior to enrollment;
(4) Discover misrepresented the date of enrollment for Products;
(5) Consumers enrolled in Discover Payment Protection improperly were charged an amount equal to .89/100 multiplied by their account balance each month rather than .89 cents for each full $100 of their account balance;
(6) Certain consumers were enrolled in Discover Payment Protection despite being ineligible for benefits;
(7) The fees for Products are unconscionably high; and
(8) Consumers improperly were denied Discover Payment Protection benefits.

Discover denies any wrongdoing but has proposed a $10.5 million class action lawsuit settlement to resolve the litigation.

The proposed Discover Payment Protection class action settlement includes all persons in the United States who were enrolled in or billed for Discover Payment Protection, AccountGuard, Identity Theft Protection, Profile Protect, Wallet Protection, The Register and/or Credit Score Tracker between January 21, 2004 and November 9, 2011 (the Class Period).

As a Settlement Class Member, you can file a claim for each of your Discover accounts one class action settlement award for each Product you were enrolled in or billed for during the Class Period, as follows:

DPP Claims. If you were enrolled in or billed for Discover Payment Protection during the Class Period, you may claim one of the following settlement awards as part of the $10.5 million proposed Discover class action settlement:

DPP Category 1: You may be eligible to claim a settlement award of the greater of $30.00 or the amount of DPP fees you paid with respect to the last three months of enrollment unless you (1) previously received a complete refund of your DPP fees, (2) invoked benefits under DPP by submitting a claim for benefits, (3) have a charged-off balance on your Discover card account equal to or greater than the amount of fees you paid for DPP, or (4) you were enrolled in DPP for twelve (12) months or more. To claim a DPP Category 1 settlement award, you must submit a Claim Form affirming that (i) you were enrolled in DPP without your consent, or (ii) you were ineligible for DPP benefits at the time you were enrolled.

DPP Category 2: If you cannot claim under the preceding paragraph, you may claim a $15.00 settlement award if you submit a Claim Form affirming that (1) you were misled as to the pricing for DPP, (2) your DPP benefits were improperly terminated, or (3) you were dissatisfied with DPP.

DPP Category 3: You may claim a settlement award of $60.00 if you submit a Claim Form affirming that you submitted a claim for DPP benefits that you believe was improperly denied. The Settlement Administrator may or may not request reasonable documentation supporting a DPP Category 3 claim.

ITP Claims. If you were enrolled in or billed for Identity Theft Protection between January 21, 2004 and November 9, 2011, you may claim one of the following settlement awards as part of the $10,500,000 proposed settlement:

ITP Category 1:
You may be eligible to claim a settlement award of $20.00 unless you (1) previously received a complete refund of your ITP fees, (2) have a charged-off balance on your Discover card account equal to or greater than the amount of fees you paid for ITP, or (3) were enrolled in ITP for 12 months or more. To claim an ITP Category 1 settlement award, you must submit a Claim Form affirming that you were enrolled in ITP without your consent.

ITP Category 2:
If you cannot claim under the preceding paragraph, you may claim a $10.00 settlement award if you submit a Claim Form affirming that you were misled as to or dissatisfied with ITP.

WP Claims. If you were enrolled in or billed for Wallet Protection between January 21, 2004 and November 9, 2011, you may claim one of the following settlement awards as part of the $10,500,000 proposed settlement:

WP Category 1: You may be eligible to claim a settlement award of $12.00 unless you (1) previously received a complete refund of your WP fees, (2) invoked benefits under WP by registering cards or reporting a lost wallet, (3) have a charged-off balance on your Discover card account equal to or greater than the amount of fees you paid for WP, or (4) were enrolled in WP for 12 months or more. To claim a WP Category 1 settlement award, you must submit a Claim Form affirming that you were enrolled in WP without your consent.

WP Category 2:
If you cannot claim under the preceding paragraph, you may claim a $10.00 settlement award if you submit a Claim Form affirming that you were misled as to or dissatisfied with WP.

CST Claims: If you were enrolled in or billed for Credit Score Tracker between January 21, 2004 and November 9, 2011, you may claim one of the following settlement awards as part of the $10,500,000 proposed settlement:

CST Category 1: You may be eligible to claim a settlement award of $17.00 unless you (1) previously received a complete refund of your CST fees, (2) have a charged-off balance on your Discover card account equal to or greater than the amount of fees you paid for CST, or (3) were enrolled in CST for 12 months or more. To claim a CST Category 1 settlement award, you must submit a Claim Form affirming that you were enrolled in CST without your consent.

CST Category 2: If you cannot claim under the preceding paragraph, you may claim a $10.00 settlement award if you submit a Claim Form affirming that you were misled as to or dissatisfied with CST.

 
To receive any money from the Discover Product Class Action Lawsuit Settlement, you must submit a claim form online at www.WalkerSettlement.com by the deadline of June 6, 2012.
 
Details on how to file a claim and ensure you receive your settlement benefits can be found in our Open Lawsuit Settlements section.

 

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Updated January 23rd, 2012

 

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions

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12 Comments

  • Anonymous January 27, 2012

    Where do you get the form to fill our I have went to MANY of your web sites.

  • Anonymous January 31, 2012

    LOL…form link is mentioned above. READ! LOL

  • Anonymous July 23, 2012

    I had a discovery card and had several extra charges a month added by them that I did not authorize them to add on my account. .i had called them several time to have them removed and credit my account and was told that all account holders has to have these extra fees .

  • Anonymous September 27, 2012

    This is a joke in timing. This NEW and latest settlement for card holders was announced on the air 10-10 win during the month of September 2012 pay us up and send out forms to card holders.

  • kelly S March 5, 2013

    Yea! right on time my ass! was told pmnt on 1st today? 5th humh! think if i was that late on pmnt would cost me double what i have comin!!

  • kelly S March 5, 2013

    receievd a letter stating pmnt ! Where is it! kixin to start another suit ! Taxes an all! discover card suck the left one!!

  • Jerry Briggs September 23, 2013

    I recently received a $10 settlement check that accidentally got destroyed. Can you please reissue.
    Jerry Briggs, PO Box 295, Strafford, MO 65757

  • B September 23, 2013

    xxxxxxx

  • B September 23, 2013

    zzzzzzzzz

  • B September 23, 2013

    ooooooooooo

  • Ken DiCrescenzo November 1, 2013

    Bullshit. I never received a form or notification that this class action suit was settled. What a crock of shit

  • David November 7, 2013

    I need some one from the law office that handled this ASAP. contact me at f3arlessleader@yahoo.com. thank you. Was sued by discover when I had account guard.

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