Credit One Bank is facing scrutiny after agreeing to a $14 million class action settlement. The lawsuit addresses claims of unauthorized robocalls and unfair billing practices that occurred between 2014 and 2019. These actions allegedly violated the Telephone Consumer Protection Act (TCPA) and involved misleading interest rate hikes, hidden fees, and poor customer service.
Although Credit One denies any wrongdoing, it has chosen to settle to avoid further litigation and reputational damage. If you were impacted by these issues, you might be eligible for compensation, with payouts potentially reaching up to $1,000.
What Is the Lawsuit About?
The class action settlement stems from two main allegations:
- Robocalls and Unwanted Communication: Credit One is accused of contacting customers with automated robocalls without obtaining proper consent, violating the TCPA.
- Unfair Billing Practices and Poor Service: The bank is also charged with failing to disclose interest rate increases, adding hidden fees to accounts, and offering substandard customer service.
Although Credit One has not admitted to any wrongdoing, its decision to settle suggests a desire to avoid prolonged legal proceedings and damage to its reputation.
Who Is Eligible to File a Claim?
You may be eligible for compensation if you meet one of the following criteria:
- Received Robocalls or Texts: If you were contacted by Credit One via automated calls or texts between 2014 and 2019 without giving consent, you might be eligible for compensation.
- Experienced Unfair Billing Practices: If you held a Credit One account during that period and were affected by hidden charges, unexpected interest rate hikes, or poor service, you might qualify for a claim.
Even if you no longer have a Credit One account, you may still be eligible as long as your experience falls within the affected timeframe.
How Much Could You Receive?
The $14 million settlement will be divided among valid claims, but your payout depends on several factors, including the number of claims filed and the details of your claim. After legal and administrative fees are deducted, the remaining funds will be distributed.
Here’s an estimate of how much you could receive based on your claim type:
- Robocall Recipients: You could receive between $100 – $300 if you were contacted via automated calls or texts.
- Unfair Billing Practices Victims: If you were affected by hidden fees, surprise rate hikes, or poor service, payouts could range from $150 – $1,000.
The final amount you receive depends on:
- The number of total claims filed
- How directly you were affected by these practices
- Whether you provide supporting documentation
- Internal records confirming your claim
How to File a Claim
To participate in the settlement and receive compensation, follow these steps:
- Visit the Settlement Website: You can find the link on the legal notice or court documents related to the case.
- Submit Your Claim: Fill out the online claim form or request a paper form.
- Provide Documentation: If you have any supporting documents, such as billing statements or call logs, attach them to your claim.
- Choose Your Payment Method: You can select either direct deposit or a mailed check.
- File Before the Deadline: Be sure to file your claim before the official deadline, which will be listed on the claim form.
No exact payment date has been provided yet, but payments will likely be issued after the court gives final approval and the claims are reviewed.
Why This Matters for Consumers
Credit One is a significant player in the subprime credit card market, catering to consumers with lower credit scores. This settlement highlights long-standing issues related to transparency and customer service in the subprime lending industry.
FAQ Section:
What is Credit One Bank being sued for?
Credit One Bank is facing a class action lawsuit over allegations of unauthorized robocalls and unfair billing practices, including hidden fees, surprise interest rate hikes, and poor customer service.
How do I know if I’m eligible for compensation from the settlement?
You may qualify if you received robocalls or texts from Credit One between 2014 and 2019 or if you held a Credit One account during that period and experienced hidden charges or unexpected rate hikes.
How much can I receive from the Credit One settlement?
Depending on your claim, you could receive anywhere from $100 to $1,000, based on how directly you were affected and the number of claims filed.
How do I file a claim for the settlement?
To file a claim, visit the settlement website, complete the online form, and provide any supporting documentation, such as billing statements or call logs. Be sure to file before the official deadline.
When will payments be made?
Payments will be distributed after the court gives final approval and the claims review process is completed. The exact payment date has not been announced yet.
