Discover Ordered To Repay $200 Million It Stole From Cardholders

Kudos to Obama’s newly formed Consumer Financial Protection Bureau for cracking down on this. In short, Discover’s telemarketers offered customers unnecessary “add-on services” which were implied to be free, and then charged customers’ accounts for said services. In July, Capital One was forced to pay $210 million over the same practice. The Los Angeles Times reports:

More than 3.5 million Discover credit card customers will share $200 million in refunds in the wake of a federal investigation that determined the bank tricked people into signing up for payment protection plans and other add-on services. Regulators said scripts for Discover’s telemarketers “contained misleading language likely to deceive consumers about whether they were actually purchasing a product.”

Consumer advocates said the enforcement actions show that the new consumer bureau is on the job. “Banks have been doing this for years, but we never had a regulator who protected consumers before,” said Ed Mierzwinski, director of the consumer program for the U.S. Public Interest Research Group.

9 Comments on "Discover Ordered To Repay $200 Million It Stole From Cardholders"

  1. alienchow | Oct 1, 2012 at 1:32 pm |

    I bet Discover didn’t pony up a big campaign contribution. How about all the Wall Street swindling? Sub prime mortgage securities being listed as AAA, as an example? Oh yeah, they get bailouts. Please, this is a fucking joke. Throwing a bone before the elections. Pathetic.

  2. alienchow | Oct 1, 2012 at 1:32 pm |

    I bet Discover didn’t pony up a big campaign contribution. How about all the Wall Street swindling? Sub prime mortgage securities being listed as AAA, as an example? Oh yeah, they get bailouts. Please, this is a fucking joke. Throwing a bone before the elections. Pathetic.

  3. Apathesis | Oct 1, 2012 at 6:02 pm |

    CapitalOne offers CreditInform, which supposedly protects your card and gives you updates on your credit score.  Of course, the person at CapitalOne assured me several times it was free, yet I discovered almost six months later it was not.  I later found out that CreditInform is a third party and is not part of CapitalOne, which makes getting a refund a pain in the ass.

  4. If you have a credit card you’re a host to a parasite.
    Why would you not expect the Banksters to NOT act like a parasite?

    Hope all the victims enjoy their $57 provided by Uncle Fed.

  5. kowalityjesus | Oct 1, 2012 at 9:56 pm |

    I have no idea how Discover credit cards stay in business.  I know exceedingly few places that will accept those cards.  Unless this is a desperate measure to stay in business, which I think it is really definitely not (just standard sleazy banking) it absolutely boggles my mind to think how profitable an entity like Visa is.  Maybe one day if I pay all my bills on time I can join their Platinum Usury club.

  6. kowalityjesus | Oct 1, 2012 at 9:56 pm |

    I have no idea how Discover credit cards stay in business.  I know exceedingly few places that will accept those cards.  Unless this is a desperate measure to stay in business, which I think it is really definitely not (just standard sleazy banking) it absolutely boggles my mind to think how profitable an entity like Visa is.  Maybe one day if I pay all my bills on time I can join their Platinum Usury club.

  7. Simiantongue | Oct 2, 2012 at 3:05 am |

    If I were to steal like that I’d spend the rest of my days in prison. Corporations are not only people they’re privileged people apparently. 

  8. Simiantongue | Oct 2, 2012 at 3:05 am |

    If I were to steal like that I’d spend the rest of my days in prison. Corporations are not only people they’re privileged people apparently. 

  9. Simiantongue | Oct 2, 2012 at 3:05 am |

    If I were to steal like that I’d spend the rest of my days in prison. Corporations are not only people they’re privileged people apparently. 

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