CMU School of Drama


Thursday, July 23, 2015

Discover Bank Must Pay $18.5 Million Over Illegal Student Loan Servicing Practices

Consumerist: As federal regulators continue to probe potentially unscrupulous student loan servicing practices, the Consumer Financial Protection Bureau has ordered Discover Bank and its affiliates to pay nearly $18.5 million in refunds and fines for, among other things, overstating amounts due on student loans and failing to notify borrowers of their rights.
According to the CFPB consent order [PDF], Illinois-based Discover Bank and its affiliates – Student Loan Corporation and Discover Products Inc. – have engaged in illegal student loans servicing and debt collection practices since at least 2010, when the company acquired some 800,000 private student loans accounts from Citibank.

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