Discover card overcharges, reimburse customers $200 million

Discover card overcharges, reimburse customers $200 million (Alberta Times) The Federal Consumer Financial Protection Bureau announced on the 24th that Discover Bank...

(Alberta Times)

> The Federal Consumer Financial Protection Bureau announced on the 24th that Discover Bank (Discover) will refund 200 million yuan to more than 3.5 million Discover credit card holders across the country and pay a fine of 14 million yuan in accordance with the settlement agreement. Discovery Bank, the nation's sixth-largest card issuer, is under investigation by the Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation for forcing cardholders to buy expensive add-on services such as payment protection and credit monitoring. The credit card company's call center included cardholders in fee-based service plans without their consent. This is the third financial enforcement action taken by the Consumer Financial Protection Bureau since its establishment in 2010. Capital One and American Express have been fined for overcharging. The services that Discovery Card forcibly promotes include payment protection, credit score tracking, identity theft protection, etc. Anyone who participated in the above-mentioned programs between December 1, 2007 and August 31, 2011 will have at least 90 days of service fees refunded. About 2 million people will have all their fees refunded. Discover Card agreed to revamp its electronic marketing practices and hire an independent auditor to monitor compliance with the Financial Protection Bureau's order.