CONFIDENTIAL AND PROPRIETARY ©2012 DISCOVER FINANCIAL SERVICES

CUSTOMER TREATMENT TRAINING

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Customer Treatment Training Objectives

Customer Treatment provides you and your

employees with:

An overview of the Discover vendor

management team and our objectives.

An overview of the Company’s history, vision,

mission and diversified product lines.

You speak with our customers on a daily

basis. You should have a good

understanding of who we are, what we

do, and the values we live and breath

daily at Discover.

Customer Treatment training material setting

clear expectations for customer treatment,

quality and compliance.

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Customer Treatment Training Overview

Introduction to the Vendor Management Team

Discover Inception and History

Discover Bank and Discover Payment Networks

Discover Values

Discover Domestic Locations

Discover’s Vision and Mission Statement

Discover Branded Experience

Know me. Hear me. Help me.

Compliance Expectations and Do’s and

Don'ts

A message from Carlos Minetti and Mike Daverio

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You are an extension of our team, company, and our brand!

You represent Discover!

Vendor Management Team

Who we are..

Michelle Thomas

Manager

Aaron Wilson

ManagerRich Springer

Manager-Attorney

Toni Friesner

Administrative

Assistant

Kyle Simpson

Department Manager-

Agency

Dawn Maners

Associate Vendor

Management

Susan Conkle

Associate Vendor

Management

Ivy Spence

Associate Vendor

Management

Pete Klipa

Attorney/SOA

Sr. Department Manager

Greg Reed

Agency/Attorney/BKPend/

Probate

Sr. Department Manager

Carolyn Morrison

Administrative

Assistant

Michael Artis

Associate Vendor

Management

Rachael BowmanProject Manager

Vendor

Management

Matt MuellerProject Manager

Vendor

Management

Larry Lowry

Manager

Charlotte Strichland

Associate Vendor

Management

Jeremy Martin

Associate Vendor

Management

Evin Culp

Associate Vendor

Management

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Vendor Management Team

Y ou are an extension of our team, company, and our

brand! You represent Discover!

What we do...

Maintain the highest levels of vendor compliance and quality

Protect the Discover brand

Collaborate with our agencies and attorneys to optimize

performance

Maintain and grow vendor relationship/partnership

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Our History

We have one of the most recognized brands in U.S. financial services.

The success behind what makes us one of the nation's leading direct banks today is

the same as what made us a pioneer in 1986 when we launched the Discover card: a

focus on the customer and a commitment to be different, to be better, and to offer the

best service in the business.

First commercial launched during the Super Bowl in 1986 with “Dawn of

Discover”

First to have no annual fee

First to offer Cashback Bonus

Acceptance was a challenge as Visa and MasterCard dominated the merchant

landscape. Today, we have grown to over 50 million customers and 5.5 million

merchants.

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Our History

Putting customers first is in our DNA.

Discover brought innovation and change to the credit card industry - change that

focused on features and services that consumers wanted, but couldn't find in other

credit cards. Discover changed that by pioneering cash rewards and offering a card

with no annual fee. We have never lost sight of our heritage and remain focused on

the customer today.

From a Credit Card Pioneer to a Leading Direct Bank.

Today, Discover is a leading direct bank and electronic payment services company.

Our direct bank issues the company's flagship credit card business and offers an

array of banking products, Including :

Home Loans

Private Student Loans

Personal Loans

Home Equity Loans

Checking and Savings Accounts

CD’s and money market accounts

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Discover Values

oing the right thing

nthusiasm

olunteerism

nnovation

implicity

ollaboration

peness

espect

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Discover’s Vision and Mission Statement

How do your processes support the vision and mission of Discover?

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What is a Brand?

A brand is a relationship

A brand is a reputation

A brand is our customers’ expectations ofus

A brand is a promise to our customersand shareholders

What brand names have you seen in the news lately?

What was your perception of that particular brand name after seeing news reports?

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Why is a Brand Important?

A brand sets the company apart from thecompetition and helps the company become recognizable.

A brand is more than a name. It is, in essence,a company as experienced by its customers.

Discover is one of the world’s leading financialservices organizations. That means our name must be synonymous with trust, integrity, loyalty and excellent customer service.

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Brand Experience

Agent Experience

Be caring, attentive, and acknowledge each customer

Cardmember Engagement

Probe effectively to understand a customer’s situation and obstacles to making a payment

Presenting Solutions and Offers

Present offers and solutions in a relevant way based on customer needs

Building Trust and Loyalty

Create a memorable experience and show customer appreciation

You represent Discover each time you talk to a customer or third party. Remember

your actions can maintain, improve or harm the Discover brand image.

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YOU ARE

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Know Me, Hear Me, Help Me

What is ?

Know me.

Hear me.

Help me.

KMHMHM is Discover’s attitude and approach to

handling customer interactions.

Getting to KNOW our customer and their unique

situation by creating a CONVERSATION through

LISTENING and EMPATHY so that you can HELP

the customer.

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Know Me, Hear Me, Help Me

Why?

Know me.

Hear me.

Help me.

Times have changed

Using Know Me. Hear Me. Help Me. ensures

Discover and our partners consistently manage

our conversations with customers.

This approach helps build lasting relationships

with our customers that are based on trust,

respect, and commitment and supports Discover

Card’s vision and mission.

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Know Me, Hear Me, Help Me

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Top Compliance Concerns

Harassing, belittling, forceful, or abusive tactics, including obscenities or profanity

Telephone check mishandling, including NSF check abuse and unauthorized withdrawals

Calling outside of acceptable times and/or excessive call frequency

Chronic pattern of call monitoring infractions

Chronic pattern of complaints and counterclaims

Chronic settlement defects

Chronic issues with accurate closures, recons, electronic updates, and verifications

Consistently poor audit results

Financial mismanagement or bankruptcy proceedings

Repeated trust account issues

Misrepresentation of individual at vendor or vendor itself

Repeated breaches of security

Pattern of unreported complaints, counterclaims, and/or government investigations

Failure to comply with employee background checks and drug test requirements

Failure to comply with settlement closure requirements

Failure to comply with vendor audit requirements or prepare for a vendor audit

Failure to notify Discover before commencement of a merger, sale or acquisition

Failure to follow applicable local, state and federal law

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Top Compliance Concern Examples

Behavioral

Harassing, belittling, forceful, or abusive tactics, including obscenities or profanity

Telephone check mishandling, including NSF check abuse and unauthorized

withdrawals

Misrepresentation - e.g. “Sheriff’s office”, “Courthouse”, etc.

Procedural

Not notifying Discover of Complaints, Lawsuits, governmental investigations, etc.

Failure to read the Mini Miranda or verify the person with whom you are speaking

Calling outside of acceptable times and/or excessive call frequency

Data security breaches

Trust account management – Commingling funds, negative balances, etc.

Incorrectly notating and closing settled/disputed/bankrupt accounts

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Customer Treatment Reinforcement

DO DO NOT

Comply with the FDCPA and all state regulations

Treat customers and third parties with respect

Be caring, attentive, and acknowledge each customer

Read the Mini Miranda on every call

Identify yourself and the company you represent

Verify that you are speaking with the customer

Probe effectively to understand the customer situation and obstacles to making a payment

Disposition calls and accounts correctly

Cease all collection efforts if the customer has retained an attorney for any purpose

Cease all collection efforts when customers indicatefraud, dispute, and bankruptcy

Speak CLEARLY so the Cardmember understands you

Harass, belittle or abuse our Cardmembers

Improperly threaten legal action, jail, foreclosure, or garnishment

Use implied or indirect threats

Misrepresent yourself as someone you are not

Use obscene or profane language

Mishandle checks or abuse NSF’s

Perform unauthorized account withdrawals

Make calls before 8am and after 9pm

Make excessive call attempts

Discuss account information with a third party without customer consent or POA.

Disrespect the Cardmember

DO

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The Company Line

“We have no higher priority than to reward our customers with the best

service in the business”. Carlos Minetti, President

Consumer Banking

“You and your collections team have the opportunity to improve, maintain, or

jeopardize the relationship with our cardmembers each and every day.

Failure to protect the brand can be a shut-down in bonus, placements, or the

relationship altogether. Even one collector can end the relationship, so

please continue to reinforce this message. Thank you for all you do to

protect the Discover brand!”

Mike Daverio, Vice President,

National Recovery Center