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Discover Financial Services is facing an enforcement action by the Federal Deposit Insurance Corp. over the way it sold its payment protection, identity theft protection and other products.

The Riverwoods, Ill.-based credit card company said in a regulatory filing late Wednesday that the agency has notified its banking division that it plans to take action, following an investigation started several months ago. Discover said it is cooperating in the probe. The FDIC would not comment.

The investigation follows the filing of a series of class action lawsuits in various U.S. District Courts challenging the company's marketing.

At issue are its sales policies for several products:

Payment protection: This service allows users to put Discover Card payments on hold for up to two years following a job layoff, disability, leave of absence, hospitalization, death of a spouse or domestic partner or federal or state disaster. It also allows one-month holds on payments following happier events like a marriage, childbirth, adoption, new job, retirement, moving or graduation.

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