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Money

Discover To Pay $200 Million In Settlement For Marketing Of Credit-Protection Products

FILE - In this June 22, 2011 file photo, Steve Wheelock holds up his Discover Card in San Francisco. Discover Financial Services said Thursday, Sept. 22, 2011, its third-quarter profit more than doubled as its customers used their cards more and late payments reached a new low. (AP Photo/Paul Sakuma, File)
FILE - In this June 22, 2011 file photo, Steve Wheelock holds up his Discover Card in San Francisco. Discover Financial Services said Thursday, Sept. 22, 2011, its third-quarter profit more than doubled as its customers used their cards more and late payments reached a new low. (AP Photo/Paul Sakuma, File)

(Reuters) - Discover Financial Services

The issuer of credit cards, which reached an agreement in principle with the Federal Deposit Insurance Corporation (FDIC) and Consumer Financial Protection Bureau (CFPB), will pay an additional $14 million in penalties to be split between the regulators.

Discover Financial said in January it had been notified by the Federal Deposit Insurance Corp and the Consumer Financial Protection Bureau over its marketing practices for fee-based protection products, such as balance protection.

The company said it will refund money to cardholders who bought the products by telephone from December 2007 to August 2011.

The agreement comes almost two months after Capital One Financial

Discover Financial shares closed at $38.62 on Friday on the New York Stock Exchange.

(Reporting by Ashutosh Pandey in Bangalore; Editing by Gary Hill)

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