Discover to Pay $18.5 Million Following Student Loan Abuses
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Discover Financial Services will refund $16 million to consumers and pay a $2.5 million penalty to resolve U.S. Consumer Financial Protection Bureau claims that the bank engaged in illegal student loan servicing practices.
CFPB found that Discover overstated minimum amounts due on billing statements and denied consumers information needed to obtain income tax benefits, the agency said in a statement Wednesday. The Riverwoods, Illinois-based company also engaged in illegal debt collection tactics, including calling consumers early in the morning and late at night, CFPB said.