Credit One Bank, a major subprime credit card issuer, is under scrutiny again after agreeing to a $14 million class action settlement. The lawsuit centers on alleged violations of the Telephone Consumer Protection Act (TCPA) and unfair billing practices that impacted consumers between 2014 and 2019. If you received robocalls from Credit One or held a Credit One account during this period, you may be eligible for compensation—up to $1,000 depending on your claim.
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What the Lawsuit Is About
The legal action covers two primary areas of alleged misconduct:
1. Unlawful Robocalls and Text Messages
Credit One allegedly used automated dialing systems to contact consumers without prior consent, which violates the TCPA. These calls were often for payment reminders or marketing purposes.
2. Unfair Billing and Deceptive Practices
Consumers reported:
- Surprise interest rate hikes
- Undisclosed or hidden fees
- Inadequate customer service
- Poor account management
While Credit One denies wrongdoing, it has agreed to the settlement to avoid continued litigation and further reputational damage.
Who Is Eligible?
You may qualify to file a claim if you:
| Criteria | Description |
|---|---|
| Robocall/Text Message Recipients | You received calls or texts from Credit One between 2014 and 2019 without your prior written consent |
| Account Holders | You had a Credit One account in that same period and were affected by hidden fees, rate increases, or billing/service issues |
Even if you no longer bank with Credit One, you’re still eligible if you meet the above criteria.
How Much Can You Get?
The $14 million settlement fund will be divided among approved claimants after deducting legal fees and administrative costs.
Estimated Payouts:
| Claim Type | Estimated Payment |
|---|---|
| Robocall Recipients | $100 – $300 |
| Unfair Billing Victims | $150 – $1,000 |
Factors That Affect Payment:
- Total number of claims filed
- Severity of your claim (e.g., repeated calls or recurring billing issues)
- Availability of supporting documentation (e.g., statements, call logs)
- Internal Credit One records matching your claim
How to File a Claim
Although the official settlement website is not yet live, here’s what you’ll typically need to do once it opens:
Steps to Claim:
- Visit the settlement website (link will be included in official notices)
- Fill out the online claim form or request a paper version
- Attach documentation if available (statements, screenshots, call logs)
- Choose your preferred payment method (direct deposit or check)
- Submit by the deadline (TBA)
Claims will be reviewed and processed after court approval, and payments will be made in late 2025 or early 2026, depending on court timelines.
Why This Settlement Matters
Credit One is one of the largest credit card issuers for subprime borrowers, often targeting individuals with poor or limited credit history. This case sheds light on long-standing consumer complaints:
- Poor communication and aggressive collections
- Unexpected rate changes
- Complex and unclear billing policies
For Consumers:
This is a reminder to monitor your credit accounts closely, know your rights under the TCPA, and hold financial institutions accountable for transparency and fair treatment.
FAQs:
Is Credit One admitting guilt?
No. The bank denies all allegations but is settling to avoid the cost and uncertainty of continued litigation.
Do I need to still have a Credit One account to file?
No. Former customers are eligible as long as they were affected between 2014 and 2019.
How will I know if I’m eligible?
You may receive a notice by email or mail, or you can check your eligibility when the official website goes live.
