UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01. Other Events.
On April 16, 2025, following the consent of the Board of Directors of Discover Bank, the Federal Deposit Insurance Corporation (“FDIC”) issued to Discover Bank an Amended and Restated Consent Order, Order for Restitution, and Order to Pay. The FDIC order amends and restates the consent order issued by the FDIC to Discover Bank on September 25, 2023. On April 18, 2025, the Board of Governors of the Federal Reserve System, following the consent of the Boards of Directors of Discover Financial Services and DFS Services LLC, issued an Order to Cease and Desist and Order of Assessment of a Civil Money Penalty to Discover Financial Services and DFS Services LLC. The orders resolve these agencies’ investigations of Discover Financial Services, Discover Bank, and DFS Services LLC concerning the previously disclosed card product misclassification issue. The orders require changes to policies and procedures to address the card production misclassification issue and restitution to affected parties; that work is already underway. Together, the agencies assessed civil money penalties of $250 million. The full amount of the penalties was accrued as of September 30, 2024.
Copies of the orders are included as Exhibits 99.1 and 99.2 to this report and are incorporated by reference into this Item 8.01.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. |
Description | |
| 99.1 | Consent Order between the Federal Deposit Insurance Corporation and Discover Bank dated April 16, 2025 | |
| 99.2 | Order between the Board of Governors of the Federal Reserve System and Discover Financial Services and DFS Services LLC dated April 18, 2025 | |
| 104 | Cover Page Interactive Data File — the cover page from this Current Report on Form 8-K, formatted as Inline XBRL (included as Exhibit 101). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DISCOVER FINANCIAL SERVICES | ||||||
| Date: April 18, 2025 | By: | /s/ Efie Vainikos | ||||
| Name: | Efie Vainikos | |||||
| Title: | Assistant Secretary | |||||