August 30, 2015

The Consumer Financial ProteDiscoverction Bureau (CFPB) carries a big stick.  CFPB told Discover Financial Services’ banking unit to pay $16 million in refunds to more than 100,000 borrowers and $2.5 million in penalties.

What happened?

CFPB alleged that Discover conducted illegal practices tied to the servicing of student loans.

  • Overstated minimum amounts due on billing statements
  • Unfair actions in debt collection
  • Calling borrowers late at night
  • Misleading borrowers

Discover neither admitted nor denied the allegations but will be paying the refunds and penalties.

So you won’t be getting any late night or early morning phone calls if you have student loans with Discover.