Minnesota sues Discover, alleges deceptive practices
Consumers looking to avoid credit card debt in the state of Minnesota received a victory today as Minnesota Attorney General Lori Swanson filed a lawsuit with Discover Bank.
Swanson says Discover Bank has been engaged in deceptive business practices that aim to trick cardholders into applying for payment protection programs, including wallet protection, payment protection and credit score tracking products.
“The company charged some consumers for expensive add-on financial products without their understanding that their credit cards would be charged,” Swanson said on Monday, according to The New York Times. “The irony is that the credit card company markets these products as a way for consumers to protect themselves from fraudulent or unauthorized credit card charges and financial instability in the bad economy.”
The lawsuits says Discover Bank made frequent misleading calls to state residents, charging them for enrollment in policies without their knowledge, the news provider says. Discover refused to comment on the litigation to the Times.
Earlier this year, a similar lawsuit was filed in the state of New Jersey, though this has yet to be heard in court.