Payment Protection sign up fraud

ComplaintsFinancesDiscover card

Complaint

0
Belinda
Country: United States
Two months ago (January 2010) I noticed a $30 charge on my Discover credit card for "PAYMENT PROTECTION PPD". I called into Discover to investigate the charge, and they told me it was a recurring monthly fee that I was being charged because I was part of their Payment Protection Plan.

I never signed up for this service.

I told the representative on the phone that I never signed up for any such service, and demanded a refund. She told me that because I had been signed up for the service for so long, she would not issue me any refunds, but she would cancel my enrollment.

I continued to demand a refund, and she told me Discover would have to conduct an "investigation" that could take 4-6 weeks. If Discover could prove that I did not sign up for this service then she would issue me a refund.

I never heard anything back and called in 6 weeks later to inquire about the status of my investigation. I was told that no one ever started any investigation, and if I wanted to request one, I would have to wait ANOTHER 4-6 weeks for them to determine if I signed up for the program. I asked to speak to a manager, was denied and told the only thing I could do was continue to wait.

Two weeks later I received an email from Discover saying they had refunded the fees they had been illegally charging me SINCE MAY 2009.

There was no apology in the email, no statement showing there was ever any "investigation", and no mention of refunding any interest I was charged on these fees.

This company is illegally signing people up for extra services without consent and charging them monthly. "Buyer" beware!

Comments

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  • 0
    TSACGIV
    DISCOVER CARD IS DOING ILLEGAL THINGS AGAIN.
    YESTERDAY I NOTICED DISCOVER CARD IS CHARGING AGAIN PAYMENT PROTECTION TO DISCOVER CARD OF MY POOR HUSBAND BLIND AND THEY ARE CHARGING THE SAME AMOUNT TWO(2) TIMES!!!SEP 1 PAYMENT 50,00
    SEP 9  PPD 1877-883-1959 $ 10.02
    TOTAL FEES FOR THIS PERIOD $ 10.02
    INTEREST CHARGE IN CASH ADVANCES IS 23.28.HE HAS NO CASH ADVANCES IN  4 YEARS.
    DISCOVER CARD DO NOT RESPECT CONSUMERS.DISCOVER CARD WAS TOLD FOR FEDERAL RESERVE BANK DO NOT USE PAYMENT PROTECTION FRAUD.
    PPD 1877-883-1959.PAYMENT PROTECTION FRAUD.
    PLEASE FEDERAL RESERVE BANK HELP US.FEDERAL RESERVE BANK IS THE ONLY ONE THAT CAN HELP US AGAINST DISCOVER CARD FRAUDULENT PRACTICES.
  • 0
    TSACGIV
    GIVE A COMPLAINT ABOUT DISCOVER CARD PAYMENT PROTECTION FRAUD TO FEDERAL RESERVE BANK.

    https://www.federalreserveconsumerhelp.gov/complaint/formcomplaint.cfm
  • 0
    John
    Go here to investigate a class action lawsuit that centers around this issue:

    http://www.walkersettlement.com
  • 0
    Danielle
    I have had my Discover card for 3 years and didn't start actually using it until recently. I was looking through my statement and notices a $1.35 charge for "Payment Protection PPD" (I don't charge large amounts, so I assume that's why my protection was low). I had never received a charge of any kind during the time that I was not using the card.

    I called them and went through the automated menus only to be hung up on when I finally pushed "0" to talk to a representative. So I called back and pressed "0" before the menus started. I informed the kind woman that I never signed up for this and she replied that it had been there for 3 years and that she would connect me to the right person to talk to about this. She sent me back to the same menu I had just been at before calling the second time. I got it to cancel my enrollment and I'm not too mad about the $1.35, but I will be mad if I get another charge next month and I will be demanding my $3 (or however much) to be refunded.
  • 0
    Michelle
    | 3 replies
    I'm not sure if it's because of previous complaints, but when I called to cancel my enrollment (because like everyone else, I had not enrolled and, since I barely used the card, didn't notice until this year that I was "enrolled" in 2009), the man was very nice, did it without question and without trying to get me to change my mind, and offered me a refund without my even having to ask. It will only amount to about $10, but it was nice to see they are possibly trying to remedy the fraud it looks like they committed on so many people in 2009. Hopefully others will have similar customer service experiences.
    • 0
      Anderson replies to Michelle
      | 2 replies
      I had carried a high amount on my discover card for some unexpected house repairs. I called to to get my payoff amount because i wanted to pay it in full. It was a lot higher then I thought is should have been so i did some asking about the charges. They had been charging me for fraud protection for many years without my consent. I told them they needed to take it off and the woman said she would look into it. 5 days later they notified me that they took of $2200 worth of payment protection charges. Please check and make sure you are not in the same boat as me. I am glad i checked.
      • 0
        They were sued.. replies to Anderson
        by FDIC and the Consumer Financial Protection Bureau.  They're subject to a consent order, which is probably why they returned thousands of dollars they charged you years ago.
        http://www.consumerfinance.gov/newsroom/discover-consent-order/

        If you have any problems recovering the entire amount, contact CFPB.
      • 0
        Anne replies to Anderson
        The same thing happened to me when I had an unexpected expense that had to be charged to my card. I went to look at my statement (which I never do because I don't use it and am paying down the balance) and saw the payment protection plan charges. I called them and asked what the heck was going on - I'd been through this  a long time ago - randomly started showing up on my statement, and I'd call and cancel.  Anyway, the customer service employee was very apologetic about it, said they were going to refund all charges and interest accrued - he couldn't tell me how much it would bee right then, but I would get an email. I"m thinking yeah, right! I got the email today and about passed out. $10,000 credit between the plan charges and interest. So, my question is - how do I start a class action lawsuit, because I think they are cancelling plans when customers calls, but I also know from personal experience, they are starting them up again without authorization. They are making millions on restarted plans that go unnoticed!!!
  • 0
    Lauren
    After reading these comments I looked at all my previous statements and found I'd been enrolled in this without my knowledge also, and was being charged around $30 every month because of my high balance. I called and after a seriously uncomfortable exchange with the sales rep (in which he said I sounded like a "smart girl" and I "shouldn't believe everything you read on the internet", I had to scream and threaten to cancel my card before he offered me a refund. He was completely condescending but ultimately they credited me $223 for the past year of charges, so I'm glad for that.
  • 0
    Lee
    | 4 replies
    I only just now noticed that I have been enrolled since at least 2011 after seeing a charge on my card this past month. I don't use my card and have been only paying the balance for a while and decided to check the statement to see if there was anything and there was a $53 charge for this "service."

    I am contacting them now and will see what they are going to do for me and post again with what the resolution becomes.
    • 0
      andy replies to Lee
      | 3 replies
      hey i have the same problem as yours. i have been charge $20 every month. is it possible to do. furthermore as far i remember i didnt sign up for the ppd. i have to call them to refund money back. thanks guys for the information.
      • 0
        donahue replies to andy
        | 2 replies
        Discover Credit  Card had have been charged to my account 17.95 since 2012 thru March 2017 i complaint several times and they always said they are going to call be back and they never did and also i want a probe i did sign big silent i did call in march i saw again the charge this time was 20.00 they told me they are no return money they will return 60,00 why that amount  when they charged in 4 years almost 2000 or more iever sign a contrart. Lows i told them i do not want the contract they returned me 700.00 because i never used .
        • 0
          Sue replies to donahue
          | 1 reply
          Same here, just noticed that they had been charging us for that Payment Protection Plan that we never authorized, that we were never advised about by Discover. I noticed that just this month because they emailed us that our account was overdrawn which is impossible because we don't and haven't used the card in years. We have just been paying the monthly fee to lower the balance.  I never check the statement but I do check online for any activity every month when I make the payment.  Interestingly enough the Payment Protection Plan charges never show up there.  In any case, I calculated how much they have taken for this unauthorized plan and it comes up to $9,746.32.  My husband called them and argued with them, demanded a refund, but they refused - stating that they could only refund us for 6 months and that they would cancel the plan on our account today.  To say that I am upset, that I am livid is an understatement.  That is our money that they are keeping.  :(
          • 0
            Melanie replies to Sue
            Did you get the money reimbursed
  • 0
    sarah
    Ditto to what Michelle's comment above. Apparently, I'd been incurring charges all the way back since 2008...I had just made an account on Mint today to make some budgets. While I was in Mint, I noticed a set of monthly charges that I had never see before (b/c they were charges to my discover card, rather than to my checking account).

    so first I googled the name of the charge and found this site. After reading the above comments
    I called up Discover to be unenrolled and reimbursed and the customer care guy was SUPER nice and immediately said he'd put in a claim to dispute all those unauthorized charges... and he only went back as far as 2010 and just with that he found over $600 of charges that will be reimbursed... (the dispute center will follow up and reimburse everything going all the way back to 2008).  Crazy town.
  • 0
    Crazybusiness
    Same thing happened to me. I have not been using my card, just paying it down. When I reviewed the statement I noticed this charge for payment protection ppd. I went through each of my statements, and found it started in 2008!!! I called discover, and the woman was very friendly and helpful. She has told me it is now cancelled, and she offered to submit a claim to dispute the charges. Her total of 480 dollars is the same as what I added up.
    We will see how the dispute is resolved. Hopefully I will be refunded the charges.
    Lesson learned. Review statements and bills carefully.
  • 0
    Jess
    I just happened to look at one of my statements from Discover tonight (I rarely ever do) and noticed a $48.00 charge for Payment Protection that I never signed up for.  I started looking back through my statements from last year until this year and realized I've been getting charged all along, starting from $13.00 all the way to this past month of $48.  I immediately called and I said "I would like to cancel the payment protection, I didn't even know I had it."  The guy immediately apologized and said he would submit a dispute and I will be reimbursed for all the times I was charged.  I just looked at the dispute and I am suppose to be reimbursed $647.  I'm an idiot for never noticing something was up, but it's not even on the first page of the statement which is what I normally would look at.  It says it will take up to 30 days, so hopefully I will be reimbursed...just glad I finally caught it now.
  • 0
    Jason
    | 1 reply
    I happened to look at my YTD statement for this year and noticed all the fees I had been charged from the payment protection plan. I googled this issue and came across this thread so I decided to call Discover and inquire about it. After speaking to the nicest customer service lady ever (seriously, ever), she told me that I had "enrolled" in 2009 (which seems to be a recurring theme in this thread) and filed a dispute since I didn't remember signing up. Not more than a minute passed when she said that I would be reimbursed all fees (which totaled roughly $400) that were charged to my account under the payment protection plan. I have to say that the customer service was very impressive and I believe that they are trying to remedy a possible mistake that affected a lot of people. Thank you Discover for caring about your members!
    • 0
      tj replies to Jason
      She was "nice" because Discover has a "gun" pointed at it, in the form of a consent agreement.

      They got caught signing up their customers, through deception or without authorization, and they reached a "voluntary settlement" with FDIC and the Consumer Financial Protection Bureau, agreeing to over $200 Million in consumer redress and penalties.
      http://www.consumerfinance.gov/newsroom/discover-consent-order/
      "...
      Sep 24 2012
      Federal Deposit Insurance Corporation and Consumer Financial Protection Bureau Order Discover to Pay $200 Million Consumer Refund for Deceptive Marketing

      WASHINGTON, D.C. – Today, the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) announced a joint public enforcement action with an order requiring Discover Bank to refund approximately $200 million to more than 3.5 million consumers and pay a $14 million civil money penalty. This action results from an investigation started by the FDIC which the CFPB joined last year. The joint investigation concerned deceptive telemarketing and sales tactics used by Discover to mislead consumers into paying for various credit card “add-on products” – payment protection, credit score tracking, identity theft protection, and wallet protection.
      ..."
  • 0
    garrett
    Yepper just called discover and i am getting about 2,600 back yea me.
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