Discover to refund $200 million for deceptive telemarketing

Discover Bank has agreed to refund $200 million to more than 3.5 million cardholders over claims of deceptive telemarketing.

The Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation announced the agreement Monday, following a joint investigation that found Discover's telemarketing and sales strategies misled consumers. In addition to refunding customers, Discover Bank, a subsidiary of Discover Financial Services (DFS, Fortune 500), will pay a $14 million penalty that will be split between the two regulators.

The agencies said Discover telemarketers used deceptive language to convince cardholders to pay for additional products like payment protection, identity theft protection and credit score tracking.

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