Discover faces FDIC action on protection sales
Lawyer Blogs
Discover Financial Services is facing an enforcement action by the Federal Deposit Insurance Corp. over the way it sold its payment protection, identity theft protection and other products.
The Riverwoods, Ill.-based credit card company said in a regulatory filing late Wednesday that the agency has notified its banking division that it plans to take action, following an investigation started several months ago. Discover said it is cooperating in the probe. The FDIC would not comment.
The investigation follows the filing of a series of class action lawsuits in various U.S. District Courts challenging the company's marketing.
At issue are its sales policies for several products:
Payment protection: This service allows users to put Discover Card payments on hold for up to two years following a job layoff, disability, leave of absence, hospitalization, death of a spouse or domestic partner or federal or state disaster. It also allows one-month holds on payments following happier events like a marriage, childbirth, adoption, new job, retirement, moving or graduation.
Related listings
-
LA sheriff under fire after report slams jails
Lawyer Blogs 09/29/2011Los Angeles County's longtime sheriff is facing one of the toughest attacks of his 13-year term, after a civil rights group demanded his resignation and claimed he looked the other way while his sprawling jail network became co-opted by violent and c...
-
Wis. Supreme Court takes payday loan case
Lawyer Blogs 09/26/2011The state Supreme Court has agreed to decide whether Wisconsin law permits judges to determine when payday loan interest rates are too high. The court will consider whether state statutes block judges from determining if a particular interest rate is...
-
Ill. court rules against releasing Drew Peterson
Lawyer Blogs 09/20/2011The Illinois Supreme Court says Drew Peterson must stay in jail while the former police officer fights charges that he murdered his third wife.Peterson has been jailed for more than two years. His trial has been on hold while prosecutors appeal a rul...
Grounds for Divorce in Ohio - Sylkatis Law, LLC
A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party
Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party
However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.