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The Carlson Law Firm is currently accepting clients who were affected by Discover’s violations of the Truth in Lending Act (TILA). If you are a past or current Discover card customer, you may be entitled to compensation through a Discover TILA Violation Lawsuit.

Contact us to discuss your legal options.

How did Discover violate TILA?

Discover failed to disclose a feature called the Cash Over Purchase feature on its monthly billing statement. This feature allows Discover customers to get cash from a store while making a purchase at a lower/better rate than a cash advance. 

Regardless of if whether or not a customer used their card the previous month, the cash over purchase feature must be disclosed on all monthly billing statements. 

Failure to disclose this violation puts Discover in direct violation of TILA and Regulation Z. To date, Discover has yet to address this violation. 

Contact a Consumer Protection Attorney to discuss your Discover Lawsuit legal options.

What is the Discover Cash Over Purchase Feature?

Cardholders can get cash at checkout counters for an amount over the amount of their purchase. Essentially, the cash over purchase feature allows Discover card users to get cash without going to an ATM. In other words, the feature allows Discover cardholders to avoid transaction fees such as ATM and bank fees. 

What is the Truth in Lending Act?

The Truth in Lending Act or TILA protects borrowers by requiring banks and other institutions to disclose appropriate information before lending funds. It’s the law in place that protects consumers from unfair lending practices. 

TILA covers the following consumer credit loans: 

  • Mortgages
  • Credit cards
  • Home equity loans

The law requires that lending institutions disclose certain information in writing—particularly information in regards to the terms of credit transactions. These disclosures should be consistent and standardized.

How can lending companies violate TILA?

TILA is a strict liability law. This means that it is either violated or it is not. In other words, a borrower does not have to prove intent on the part of the lender, or personal harm, to exercise your right of rescission. Only the fact of the violation is relevant. Lenders are required to provide accurate information when it comes to your credit transactions. Creditors can violate consumer rights in the following ways:

  • Failure to disclose
  • Misrepresentations
  • High-pressure sales
  • Unfair credit card practices
  • Unfair credit billing

If you were subject to any of the above violations, a consumer protection attorney can help. If you are Discover cardholder, contact a Discover TILA Violation Attorney for a free case evaluation.

What are my rights under TILA?

Credit companies must adhere to standardized disclosure and billing rules in order to protect our economy. This protects consumers from signing bad deals, as well as protects them from unfair billing practices. 

Disclosures that credit lenders must provide include the following: 

  • A standardized set of conditions under which finance charges are imposed, as well as information about grace periods
  • The methods issuers use to determine finance charges as well as other assessments such as late fees, annual fees and over-the-limit fees
  • The annual percentage rate on the account

While U.S. law gives credit card issuers the freedom to set terms, they are still subject to stiff penalties if there is not a proper disclosure of terms. A Discover TILA Violation Lawsuit will hold the company responsible for its negligence. Further, it will keep consumers safe from predatory lending practices. 

How does Regulation Z protect consumers?

Discover also violated a Federal Reserve Board rule called Regulation Z. In short, Regulation Z requires lender to give consumers the true cost of credit in writing before you borrow. Discover cardholders who received billing statements only received information regarding Discover’s Interest charge calculations for purchases and cash advances. In order to be in compliance with federal law, the company needs to add a third line disclosing interest rates for Cash Over Purchases.

How can a Discover TILA Violation Lawsuit attorney help?

Because of the law, if there is a TILA violation you have several legal options available. Every American has the responsibility to hold our lending institutions accountable when they fail to follow the law. 

As a credit consumer, you have the right to claim statutory damages against your issuer when they break the law. Statutory damages are similar to a fine that banks pay to the government. However, in the case of a Discover TILA Violation Lawsuit, they’d pay that fine that you, the consumer. 

Additionally, consumers are entitled to actual damages sustained as a result of the failure.

If you feel that you have been the victim of an act that violated your consumer rights, contact a Consumer Protection Lawyer. 

Do I Have A TILA Claim?

As mentioned above, it’s in the interest of every American to ensure that our lending institutions are following the law in all their dealings. A company can trigger the Truth in Lending Act in many ways. Here are examples of when you may have a TILA claim:

  • A lender changed the terms of your home equity line of credit without your knowledge and consent.
  • A lender did not provide you with an accurate and truthful rate calculation
  • You receive charges for hidden or other inappropriate fees that your lender failed to disclose.

If you are a Discover cardholder, you may be eligible for compensation. The Carlson Law Firm is ready to file a Discover TILA violation claim on your behalf.

The Carlson Law Firm is here to help

Our team of attorneys is currently investigating a potential Truth in Lending Act violation on behalf of Discover credit cardholders. The Annual Percentage Rate information disclosed in billing statements was incomplete and in violation of the Truth in Lending Act. Are you a Discover cardholder? You may be eligible for compensation.

The Carlson Law Firm has extensive knowledge of the consumer protection laws that are in place to guard against unfair practices. We take the time to understand your needs as well as to examine all of the details surrounding your case to help craft effective solutions.

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