It wasn't too long ago that the
CFPB forced Capital One to refund $210 million to its customers for misleading them about the
cost of various optional services. It looks like
Discover is now on the hook for the same bad behavior.
According to the CFPB and the FDIC, Discover's phone scripts were designed
to miselead consumers about the cost of various programs like identity
protection and payment protection. Investigators found that Discover's
representatives would begin to speak faster when detailing the specifics
of the programs, making them seem to be free.
Investigators also found that some customers were enrolled without their consent.
Discover will also pay an additional $14 million in fines and submit to
an independent audit to monitor its compliance with the settlement. Customers
who still have Discover cards will see their refund credited to their
card balances. Former Discover customers will receive a check in the mail.
As with the Capital One settlement,
customers will not need to take any steps to receive their refunds. You can read more about the
settlement at the