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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.
U.S. regulators said customers will receive a notice of the Discover settlement from Discover Bank.
All consumers will receive at least 90 days’ worth of fees paid, minus any refunds they have already received. About 2 million consumers will receive full refunds of all of the fees they paid.
In addition to the $200 million refund to consumers, Discover will pay a $14 million civil penalty to the FDIC and CFBP, to be split evenly.
The announcement of the $200 million Discover settlement comes just two months after the CFPB announced a $210 million settlement with Capital One in July. The agency also charged Capital One with tricking customers into buying unwanted “add-on” products such as payment protection and credit monitoring.
Just as with the Capital One settlement, Discover customers will not need to do anything to receive their refunds. You can read more about the Discover Card Product Settlement at the CFPB website.
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7 thoughts onDiscover to Pay $200M Credit Card Product Settlement
I will get $30 and the attorneys will get over $2 million. Tell us again why class action suits are filed?
I want to receive money back that they took from me and put me in a hardship.
Id like to receive money that was taken from me.
Thanks
Charles Kern
Seattle, WA
I had both of those cards listed but moved and did not get a claim form in time. What can transpire from here. Can one still take advantage of the claim. Or is the opening for the claim already closed. Do the pay out the whole amount or only a portion of whom they contact??
I wasnt payed anything I sent the card in.
I contacted discover was advised 90 days after final court date they’d send paperwork is this orrect??? I still feel like I’m being scammed
when im i getting my refund