Discover Financial Services DFS today announced that its subsidiary,
Discover Bank, has reached an agreement in principle with the Federal Deposit
Insurance Corporation (FDIC) and Consumer Financial Protection Bureau (CFPB)
to resolve previously disclosed matters related to the marketing of certain
credit protection products sold by telephone. The agreement is subject to
final approval by both regulatory agencies.
“We have worked hard to earn the loyalty of our cardmembers, and we are
committed to marketing our products responsibly,” said David Nelms, chairman
and chief executive officer of Discover. “As always, we will continue to
strive to deliver the highest standards of customer service and satisfaction.”
The agreement requires the company to provide refunds of approximately $200
million to cardholders who purchased the products by telephone from December
2007 to August 2011 and calls for certain enhancements to the company's
marketing practices. The company will pay an additional $14 million in civil
monetary penalties to be split between the FDIC and the CFPB.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in