Published On: January 1, 2021
CFPB Settles with Discover Bank, the Student Loan Corporation and Discover Products for violating a consent order and other unlawful practices
December 22, 2020 Consumer Financial Protection Bureau issued a consent order that Discover must pay at least $10 million to consumers, and $25 million as a penalty for their unfair acts and practices. Below is a reprint of the CFPB’s announcement and Order.
The Bureau previously issued a consent order against Discover in July 2015 (2015 Order). The Bureau’s 2015 Order was based on the Bureau’s finding that Discover misstated the minimum amounts due on billing statements as well as tax information consumers needed to get federal income tax benefits. The Bureau also found that Discover engaged in illegal debt collection practices. The Bureau’s 2015 Order required Discover to refund $16 million to consumers, pay a penalty, and fix its unlawful practices servicing and collection practices. The Bureau found that Discover violated the 2015 Order’s requirements in several ways. Discover misrepresented the minimum loan payments consumers owed, the amount of interest consumers paid, and other material information, such as interest rates, payments, due dates, and the availability of rewards, among other things. Discover also did not provide all of the consumer redress the 2015 Order required.
MUSINGS BY DIANE:
Most students in higher-education are looking for ways to improve their future, and that of their family. Yes, there are a few who see student loans as “free money” and damn the consequences of taking out these loans. But, I am going to ignore that group and focus on the honest borrowers.
Honest borrowers assume that their student loan lender will be honest and treat them with respect. Unfortunately, we are seeing time after time that the banks and student loan companies and servicers just see the borrowers as easy marks and cash registers. Among other things, they mislead the borrowers about the cost of the loans and about the options to work out payments during difficult times. The successful future of our country depends on quality education for everyone. Right now student loan lenders are preying on the most vulnerable members of our society – those who see higher education as the path to a better life, but cannot afford to pay for that costly education.
– Diane L. Drain
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
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You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
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Published On: April 18, 2022
Education Loans Can Be Discharged in Bankruptcy Busting myths about bankruptcy and private student loans By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau "www.CFPB.gov". The following is an [...]
Published On: May 17, 2021
Operators of Student Loan Debt Relief Scheme Banned From Providing Debt Relief Services as Part of Settlement with FTC (Reprint from Federal Trade Commission, May 17, 2021) The operators of [...]
Published On: January 6, 2021
CFPB Charges Performance SLC and Performance Settlement, Daniel Crenshaw, with Using Deceptive Tactics November 5, 2020 – The Consumer Financial Protection Bureau (Bureau) filed a complaint against Performance SLC, LLC [...]
Published On: October 17, 2020
The following is a warning from the Federal Trade Commission regarding scams you may receive about your student loans. Read the warning and watch the very short video. October 13, 2020, by Traci Armani, [...]
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