The Federal Deposit Insurance Corporation (FDIC) has announced the issuance of three orders against Discover Bank, based in Greenwood, Delaware. The actions include an Amended and Restated Consent Order requiring the bank to take corrective action, an Order for Restitution obligating the bank to create a restitution plan amounting to at least $1.225 billion for merchants affected, and an Order to Pay a civil money penalty of $150 million.
The FDIC revealed the necessity of these actions due to certain determinations. Simultaneously, the Board of Governors of the Federal Reserve System has issued its own order. This entails corrective measures and a $100 million civil money penalty against Discover Financial Services, the bank’s parent holding company located in Riverwoods, Illinois, and its subsidiary, DFS Services LLC.
