It appears that phishing scams weren’t the only thing Discover Bank customers were supposed to look out for in the past period. The company was found to use deceptive telemarketing sales tactics to trick cardholders into paying for various services.
The US Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) reveal that the company will have to refund a total of $200 million (16 million EUR) to over 3.5 million individuals. Discover will also have to pay a civil monetary penalty of $14 million (11 million EUR).
According to the CFPB, the organization mislead customers into paying for credit card “add-on products” such as credit score tracking, identity theft protection, and wallet and payment protection services.
When advertising these products, the firm’s telemarketers downplayed key aspects and spoke quickly when telling individuals about prices and terms.
Besides restituting customers, Discover also agreed to stop deceptive marketing, submit an independent audit, and provide refunds or credits without any further action by consumers.
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