Discover Financial Services has said that CFPB Director Richard Cordray’s proposed federal probe into lender’s marketing practices could have an ‘adverse impact’ on net income, according to a report by Bloomberg.
The CFPB, along with the Federal Deposit Insurance Corp., has told Discover that they are going to take a joint enforcement action over the company’s marketing of fee-based products.
“Because the CFPB has been recently established and its director has been only recently appointed, there is significant uncertainty as to how the CFPB will exercise and implement its regulatory, supervisory, examination and enforcement authority,” Discover said in its filing. “Should the CFPB discourage the use of products we offer or steer consumers to other products or services that it deems to be preferable, we could suffer reputation harm and a loss of customers.”
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