The Consumer Financial Protection Agency fined Discover Financial Services $200 million in an for deceptive marketing of payment protection products. The agency is sending a message to "institutions that run afoul of consumer protection laws: get ready to pay big," writes American Banker’s Kate Davidson.
"We continue to expect that more such actions will follow," said director Richard Cordray. "In the meantime, we are signaling as clearly as we can that other financial institutions should review their marketing practices to ensure that they are not deceiving or misleading consumers into purchasing financial products or services."
The recent action follows an enforcement action against Capitol One that had a $210 penalty for similar issues.
"We want to make it more expensive to break the law than to abide by it," said CFPB Enforcement Director Kent Markus.
For the full piece see "CFPB Pursuing Higher Fines as Part of Enforcement Actions" (may require subscription).