Credit One Bank Sentenced: What you need to know about the $14 million class action settlement

Abusive robocalls, hidden fees, poor customer service... Credit One Bank, a major credit card issuer in the United States, is at the center of a legal scandal that has resulted in a $14 million class action settlement. Thousands of consumers could receive up to $1,000 in compensation.

Here's what you need to know, if you think you might be affected, or if you want to understand why this case is making such a splash.

Why Credit One must pay $14 million

Between 2014 and 2019, Credit One Bank and its partners allegedly used automated systems to contact consumers without their explicit consent, a practice strictly regulated by the Telephone Consumer Protection Act (TCPA).

The calls mainly concerned debt reminders or marketing offers and targeted both customers and people with no connection to the bank. In many cases, the calls persisted even after clear requests to stop.

Rather than pursue a lengthy and costly trial, Credit One preferred to reach an out-of-court class action settlement, without admitting liability, by agreeing to pay $14 million to aggrieved consumers.

Who is affected by this settlement?

You may be eligible as part of the class action settlement if you meet the following conditions:

• You received an automated call or prerecorded voice message from Credit One Bank or its affiliates between 2014 and 2019.
• You had not given your prior consent to receive these calls.
• The targeted phone number was yours at the time (even if you were not a customer of the bank).

Even without direct evidence (such as phone records), you can file a claim. File managers will cross-check the numbers with call logs to verify your eligibility.

How much can you receive?

The individual amount will depend on the number of valid claims filed. On average, experts estimate payouts ranging from $100 to $1,000, depending on Selendroid. The final amount will depend on the number of people eligible for a payment.

It should be noted that the $14 million fund will also cover legal and case management fees, reducing the amount distributed to participants. According to Selendroid, the actual amount paid out to consumers will be in the region of $8-9 million.

How to file a claim?

A dedicated official website will go live after final court approval of the class action agreement. You may receive a notification by email or post if your contact details are on the bank's records.

To file your claim :

• Go to the official website (coming soon).
• Fill in your personal details (name, contact details, relevant number).
• If possible, attach proof or a sworn statement.
• Choose your payment method (bank transfer, cheque or PayPal).

File your claim before the deadline, set between 60 and 90 days after the opening of claims.

When will you receive your payment?

The exact timetable depends on the judicial validation and the number of files to be processed. In general, it takes :

• 3 to 5 months to examine claims.
• 6 to 9 months after the final agreement to begin payments.

Beware of scams: only official websites and communications should be used. No serious company will ask you to pay to file a claim.

What does this settlement mean for consumers?

This class action settlement illustrates once again the importance of consumer protection laws in the United States. The TCPA protects individuals against unsolicited calls, an issue that has become even more sensitive in the digital age.

But this case goes further. It also reveals structural flaws in the practices of certain banks.

In addition to the robocalls, Credit One is accused of applying unjustified charges, increasing its fees without warning, and shirking its customer service obligations.

Keep an eye on your emails

If you think you've been the victim of unwanted calls or abusive banking practices, this class action settlement is an opportunity to assert your rights. It also shows that no company, however powerful, can act with impunity when it breaks the law.

Keep an eye on your emails, save any evidence of unsolicited contact, and be ready to lodge a complaint as soon as the official website opens.