The Consumer Financial Protection Bureau and the Federal Deposit Insurance Corp. on Monday jointly accused Discover Bank, the subsidiary that issues Discover credit cards, of using deceptive telemarketing and sales practices, and gave Discover 60 days to reform its compliance regime, Corporate Counsel reported today. As part of a settlement, the regulators also required Discover to refund $200 million to about 3.5 million cardholders, plus another $14 million in civil penalties to the two agencies. The also ordered the company's board to "participate fully in the oversight of Discover’s compliance management system, and take full responsibility for ensuring that appropriate policies and procedures are in place."
