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.
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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
-
Take Charge of Retirement Spending With This Simple StrategyTo make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
Five Ways to Save on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
How to Appeal an Unexpected Medical Billhealth insurance You may receive a bill because your insurance company denied a claim—but that doesn’t mean you have to pay it.
-
Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime MembershipAmazon Prime Amazon Prime will soon cost $139 a year, $180 for those who pay monthly. If you’re a subscriber, maybe it’s time to rethink your relationship. Here’s a step-by-step guide to canceling Prime.
-
How to Haggle for Almost AnythingSmart Buying Learning how to haggle is an invaluable skill. These strategies will help you negotiate a better price for just about any product or service.
-
Disability Insurance Can Provide COVID CoverageCoronavirus and Your Money If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.
-
21 Things You Can't Return to Amazon — Either Online or In-StoreDid you know there are things you can't return to Amazon? Before tossing these items into your shopping cart, be sure to read Amazon's return policy first.
-
How to Avoid a Charity Scampersonal finance Scammers never quit, even when you're trying to be altruistic. But you can avoid getting duped if you do your homework.
