The Minnesota AG is suing Discover Card for allegedly duping customers into thinking they were just getting a courtesy call about their card but then actually signing them for a payment protection plan. The AG gave copies of the audio files of the customer calls to the New York Times. Here is a salient selection of one of the transcripts.
The transcript starts off with the rep saying to the customer that he needs to check the spelling on her name and address. The customer says “correct” several times as they go through her information.
Call Rep: (Reading some kind of details about the payment protection program). (Unclear) per $100 of the balance will be charged monthly to the Discover account and then (unclear) in each billing (unclear) but payment protection is optional and whether or not you enroll will not affect the terms of any credit agreements you have with us. (Unclear) something is noted. You can cancel anytime by calling (the customer service number). If you were to cancel anytime within the first 30 days you will receive a full refund. I’d just like to thank you for your time …
Customer: I want to verify that I need to enroll, I’ll fill out paperwork if I want to enroll. You don’t automatically enroll me.
Call Rep: Before you are enrolled ma’am, you will receive our terms and conditions before you are required to pay anything. We just want you to review some of the benefits in the privacy of your own home so you can make your final decisions there.
Customer: O.K. Perfect.
The lawsuit contends that some customers say “OK” to end the call. Discover itself however considers this an “affirmative response” that is “proof” the person is agreeing to buy the plan.
If you feel you were unfairly enrolled in the Discover Payment Protection Program and want to join the class action lawsuit which has also been filed over this same issue, there’s more info at discoverpppclassaction.com.
The Tactics of Discover Card Reps [New York Times Bucks Blog]