Credit One Bank To Pay $10.2 Million In Consumer Protection Lawsuit

Credit One Bank has agreed to pay $10.2 million to settle a civil lawsuit brought by the District Attorneys’ Offices of Los Angeles, Riverside, San Diego, and Santa Clara counties. The lawsuit alleged that Credit One and its vendors engaged in repeated, intrusive, and harassing debt collection calls, violating California’s consumer protection laws and the state’s constitutional right to privacy.

The complaint, filed in Riverside County Superior Court, detailed a policy allowing vendors to make up to ten calls per day to consumers regarding overdue credit card accounts, even after requests to stop or when the wrong number was called. These practices were deemed harassment and an invasion of privacy. Credit One was previously found liable for similar violations in 2019.

The judgment, signed by Judge Harold Hopp, requires Credit One to comply with state and federal debt collection laws. The $10.2 million payment includes $9 million in civil penalties and $1.2 million for investigative costs. The Los Angeles County District Attorney’s Office will receive $2.25 million in penalties and $300,000 in investigative costs. The case was investigated by the California Debt Collection Task Force.

(Source：Canyon News)