Discover Bank paid $18.5 million over illegal private student-loan servicing practices
Company: Discover Financial Services
Summary
The Consumer Financial Protection Bureau ordered Discover Bank and affiliates to pay $18.5 million in 2015 over illegal private student-loan servicing practices. The CFPB found that Discover overstated minimum amounts due on billing statements, misrepresented tax information borrowers needed to obtain federal income-tax benefits, and engaged in illegal debt-collection practices. The order required approximately $16 million in consumer refunds and a $2.5 million civil penalty, along with corrections to servicing and collection practices. Primary source: https://www.consumerfinance.gov/enforcement/actions/discover-bank-student-loan-corporation-discover-products/