WASHINGTON - Discover Bank will pay millions of dollars to settle accusations by regulators that it pressured credit card customers to buy payment protection and credit monitoring services without their consent.
Regulators said Monday that customers were led to believe the products were free.
Now, Discover will pay $14 million in fines and refund $200 million to more than 3.5 million customers. Those affected can expect credits to their accounts or a check in the mail.
The action was taken by the new Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation, which was created in 2010 under the financial overhaul law to protect consumers from financial threats.