Discover Bank will pay at least $35 million for violating the terms of the CFPB’s 2015 student loan servicing consent order by withdrawing unauthorized payments and misrepresenting owed amounts.
Discover, a unit of Discover Financial Services Inc., and several of its subsidiaries misrepresented the minimum loan payments that some student loan borrowers owed and the amount of interest borrowers paid, among other problems, in their servicing operations, the Consumer Financial Protection Bureau said in a new consent order announced Tuesday.
Discover will pay at least $10 million in consumer redress and a $25 million civil money penalty under the settlement. ...
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