Regulators slap Discover with penalty for deceptive credit card marketing

Under the penalty, Discover has agreed to refund roughly $200 million to more than 3.5 million credit card customers who were charged for these additional services from the end of 2007 through August 2011. It also agreed to end its deceptive marketing practices, and pay out a $14 million civil penalty to the government. The bank has also agreed to an independent audit of its practices, the regulators said.

“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, in a statement. “As always, we will continue to strive to deliver the highest standards of customer service and satisfaction.”

In July, the CFPB, alongside the Office of the Comptroller of the Currency, levied a similar penalty against Capital One for its credit card marketing practices. For its deceptive marketing practices, Capital One had to pay $150 million to 2 million card customers, as well as pay a $60 million penalty.