Minnesota Sues Discover Bank Over Debt Inducing Practices

Posted by Meredith Dwyer on December 7 2010 @ 9:05 am

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Consumers in Minnesota may get credit card vindication. Consumers looking to avoid credit card debts have long been weary of taking on additional services from credit card companies, choosing instead to opt out of these cost-inducing extras.

However, officials in Minnesota say one company may have gone too far in its efforts to solicit extra money from its residents.

In a lawsuit on Monday, Minnesota Attorney General Lori Swanson says Discover Bank made aggressive and misleading telemarketing calls to consumers, looking to enroll them in unneeded payment protection and credit score tracking products, 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,” Swanson said in a statement, according to the news source.

Among the reasons listed by the state for the lawsuit included the increased ease with which Discover was able to market its products, citing their use of credit card numbers as a key factor, the news provider reports.

In a statement to the Times, Discover defended its products saying they are valuable and provide peace of mind to consumers.

Timely articles written by the Editors at DRC

New government regulations in place for consumers in need of debt relief for credit cards and other unsecured debts.

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