Kip Tips


American Express, Discover Cardholders to Get Refunds

Cameron Huddleston

Some customers of these two credit card issuers will receive money as a result of government enforcement actions.



If you have an American Express or Discover credit card, you might be getting money from your card company soon. That's because the Consumer Financial Protection Bureau (CFPB) recently ordered the two credit card issuers to refund customers for illegal practices and deceptive marketing.

SEE ALSO: Some Capital One Customers Getting a Refund

The CFPB ordered American Express to repay an estimated $85 million to about 250,000 customers. Cardholders who were promised $300 for signing up for a Blue Sky Credit Card but never received the money will be paid $300. American Express will also reimburse customers who paid excessive late fees. And it will repay customers who paid off old debt because they were promised that their credit scores would improve. American Express never reported the payments to the credit bureaus.

The CFPB and the Federal Deposit Insurance Corporation (FDIC) ordered Discover to refund about $200 million to more than 3.5 million customers who were mislead into paying for add-on products such as payment protection, credit score tracking, identity theft protection and wallet protection. The CFPB found that Discover's representatives implied that these products were free, did not disclose eligibility requirements and added charges for the products without some customers' consent.

Advertisement

American Express and Discover will automatically refund customers with open accounts by crediting their accounts. Customers who have closed their accounts will receive a check in the mail.

The CFPB says that consumers do not have to take any action to receive their refunds. Any offer from a person or group to help you obtain your refund for a fee is a scam. Also watch out for scammers who might ask you to divulge personal information in order to receive a refund.

Follow me on Twitter



Editor's Picks From Kiplinger


You can get valuable updates like Kip Tips from Kiplinger sent directly to your e-mail. Simply enter your e-mail address and click "sign up."

More Sponsored Links


DISCUSS

Permission to post your comment is assumed when you submit it. The name you provide will be used to identify your post, and NOT your e-mail address. We reserve the right to excerpt or edit any posted comments for clarity, appropriateness, civility, and relevance to the topic.
View our full privacy policy


Advertisement

Market Update

Advertisement

Featured Videos From Kiplinger