Discover Bank will refund customers $200 million and pay a $14 million fine for being deceptive in its telemarketing strategies.
The subsidiary of Discover Financial Services was reportedly using shady marketing tactics to sell customers payment protection plans and other add-ons, according to the Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau.
Refunds will go to customers who bought Discover's credit protection products over the phone from December 2007 to August 2011. The average refund is about $57.
The Los Angeles Times reports that the agencies reported that Discover's telemarketer scripts "contained misleading language likely to deceive consumers about whether they were actually purchasing a product."
This is the third-ever settlement through the CFPB, and comes after it wrapped up a settlement against Capital One in July, also for deceptive marketing tactics.
The Bureau was set up as part of 2010's financial overhaul law, the Associated Press reported. It was put in place to protect consumers from credit card fees and other financial threats.