Last year, Discover and Illinois-based United Marketing Group settled a class-action lawsuit that accused them of enrolling small businesses into Merchant Membership Programs and charging them $49.95 a month without their authorization.
An Evansville business owner says she is a victim and she's taking action.
Knitt-Witts and Pen-Pals owner Kris Proctor shows us the $49.95 monthly charge to her checking account that for years she thought was a normal fee.
"It said Discover network $49.95 a month. So we, or I, made the wrong assumption that I was still paying for credit card fees," Proctor said.
Until the name of that charge changed on her latest statement.
"Evidently, Discover sold our checking account number to what they call a third-party, but they're part of that third party and then they gained access to our account," Proctor said.
After nearly eight hours on the phone and few answers, Proctor says she did a search online and discovered these articles about a class action lawsuit.
And the new name of that charge on her statement matched.
"I have never felt so violated about anything to realize that people out there are really willing to steal blatantly from somebody's checking account that way," Proctor said.
To date, Proctor believes she's paid about $2,800 in so-called enrollment fees for Discover's Merchant Membership Programs that she says she never signed up for.
She's considering another class-action lawsuit to help get her money back.
"I'd like all the other businesses in Evansville and the Tri-State area that they need to check their checking account and if they see Discover $49.95 a month, to realize that they may not be getting anything of what they think they're getting," Proctor said.
Proctor says she has canceled her services with Discover and no longer accepts the card at her store.
Our attempts to contact Discover and United Marketing Group were unsuccessful.
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