December 22, 2020

Student loan servicer Discover Bank, together with its affiliates the Student Loan Corporation and Discover Products, Inc., will pay a $25 million penalty and at least $10 million in consumer redress to resolve allegations that the bank violated a 2015 Consent Order by failing to provide the consumer redress that order required and by continuing to misrepresent minimum loan payments, and also misrepresenting the amount of interest consumers paid and other material information including interest rates, payments, due dates, and the availability of rewards, among other things.  The CFPB also found additional unfair acts and practices by defendants, including unauthorized payment transfers.  CFPB

Tagged in: Financial and Investment Fraud, Financial Institution Fraud,