Discover sued for telemarketing abuses

State Attorney General Lori Swanson filed the lawsuit claiming telemarketers describe sales calls as a "courtesy call" and the rush through descriptions of services they are selling, the Minneapolis Star-Tribune reported Tuesday.

"This is a case of a credit card playing 'gotcha' instead of playing fair," Swanson said in a press conference.

The telemarketers often "speed-read" their sales pitches, slurring words or skipping key phrases, the lawsuit says.

Dent, Minn., postal worker Delbert Engler said he is paying interest on $900 in fees that he never authorized and does not understand. "I couldn't understand a word the person said on the phone," Engler said.

Under the guise of a "courtesy call," telemarketers are really selling payment protection that costs less than a dollar a month for every $100 of outstanding balance, but can add up if a balance runs high.

Discover also sells insurance against the possibility a consumer losses a wallet and identity theft protection for $12.99 per month.

In a statement, Discover spokeswoman Leslie Sutton said, "It's not in Discover's interest to sell a product that doesn't enhance our relationship with our card members."

She would not comment on the lawsuit, the newspaper said.

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