RIVERWOODS, Ill.--(BUSINESS WIRE)--Sep. 21, 2012--
Discover Financial Services (NYSE: 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.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company
operates the Discover card, America's cash rewards pioneer, and offers
home loans, private student loans, personal loans, online savings
accounts, certificates of deposit and money market accounts through its
direct banking business. Its payment businesses consist of Discover
Network, with millions of merchant and cash access locations; PULSE, one
of the nation's leading ATM/debit networks; and Diners Club
International, a global payments network with acceptance in more than
185 countries and territories. For more information, visit www.discoverfinancial.com.
Source: Discover Financial Services
Discover Financial Services
Media Relations
Jon Drummond
224-405-1888
jondrummond@discover.com
or
Investor
Relations
Bill Franklin
224-405-1902
williamfranklin@discover.com