Credit One Bank, NA is a subprime credit card issuer that has been the subject of multiple lawsuits in recent years. The lawsuits allege a variety of violations, including:
- Deceptive marketing practices: Credit One has been accused of misleading consumers about the terms and conditions of its credit cards, such as interest rates, fees, and rewards programs.
- Unfair debt collection practices: Credit One has been accused of harassing consumers and using illegal debt collection tactics.
- Violations of the Fair Credit Reporting Act (FCRA): Credit One has been accused of failing to accurately report account information to credit bureaus and of refusing to investigate and correct inaccurate information.
In 2023, a bankruptcy judge found Credit One liable to roughly 288,000 credit-card customers, saying the bank lied about turning over all its documents. This led to Capital One’s decision to buyout Credit One’s customer collections.
In another lawsuit, the Ninth Circuit Court of Appeals ruled in 2023 that a California state court could not sue Credit One for allegedly employing a vendor to make harassing debt collection phone calls to California residents. The court held that the National Bank Act gives the Office of the Comptroller of the Currency exclusive authority to regulate national banks.
Conclusion
Credit One is a controversial company that has been the subject of multiple lawsuits in recent years. The lawsuits allege a variety of violations, including deceptive marketing practices, unfair debt collection practices, and violations of the Fair Credit Reporting Act. It is important to be aware of these allegations before applying for a Credit One credit card.
FAQs
Q: What should I do if I have been a victim of Credit One’s deceptive marketing practices?
A: If you believe that Credit One has misled you about the terms and conditions of your credit card, you should file a complaint with the Consumer Financial Protection Bureau (CFPB). You can also file a lawsuit against Credit One in state or federal court.
Q: What should I do if Credit One has harassed me or used illegal debt collection tactics?
A: If you have been harassed by Credit One or its debt collectors, you should file a complaint with the CFPB. You can also file a lawsuit against Credit One in state or federal court.
Q: What should I do if Credit One has inaccurate information on my credit report?
A: If you believe that Credit One has inaccurate information on your credit report, you should contact the credit bureaus and dispute the information. You should also contact Credit One and demand that it correct the information. If Credit One refuses to correct the information, you can file a lawsuit against Credit One in state or federal court.
Q: Is Credit One still in business?
A: Yes, Credit One is still in business. However, it is important to be aware of the allegations against Credit One before applying for one of its credit cards.
Q: Who is the parent company of Credit One?
A: The parent company of Credit One is Sherman Financial Group.
References
- Credit One Bank, N.A. v. Michael Hestrin, No. 21-56271 (9th Cir. 2023): https://law.justia.com/cases/federal/appellate-courts/ca9/21-56271/21-56271-2023-02-27.html#:~:text=The%20lawsuit%20(the%20%E2%80%9Cstate%20action,Currency%20(%E2%80%9COCC%E2%80%9D.)
- Credit-Card Issuer Credit One Rebuked in Debt-Reporting Lawsuit: https://www.wsj.com/articles/credit-card-issuer-credit-one-rebuked-in-debt-reporting-lawsuit-11654768801
- Suluki v. Credit One Bank, NA Defendant – Consumer Financial Services Law Monitor: https://www.consumerfinancialserviceslawmonitor.com/wp-content/uploads/sites/880/2023/04/Suluki-v.-Credit-One-Bank-NA.pdf
- Credit One Bank FAQs: https://www.creditonebank.com/faqs
- Credit One Vs. Capital One – Forbes Advisor: https://www.forbes.com/advisor/credit-cards/credit-one-vs-capital-one
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