In business since 1985 and operating as a credit card bank since 1996, Credit One Bank has grown into a large company with more than 1,500 employees. The company specializes in issuing credit cards to people with lower-than-normal credit scores.
The bank has been subject to lawsuits many times over its history, and has recently been ordered by a judge to pay out $14 million to consumers affected by its actions. Claimants will receive anywhere from $100 to $1,000, depending on how many people file a claim. So are you eligible to cash in on this?
1. You Were Contacted by the Bank at Some Point
Credit One is known for its aggressive marketing and the company frequently targets people who otherwise might not be able to qualify for a credit card. The company uses several marketing techniques including cold calls over the phone and mailers with credit cards already in them.
It is not necessarily known how Credit One compiles their lists of potential clients, but they are incredibly persistent once they receive that information. The latest settlement regarding Credit One concerns robo-calls and the people that received them. The calls were made to both customers as well as non customers.
2. What Was the Company Accused Of?
The suit alleged that between the years 2014 and 2019, the company made thousands of robo-calls to customers without their express consent. The filers of the suit say that this is a violation of the Telephone Consumer Protection Act (TCPA) and that the people affected are eligible for an award.
The vast majority of the calls were either marketing calls to attract new customers or calls to collect a debt. Since some of those receiving calls were already customers and others weren’t, both customers and non-customers were affected.
3. You Have to File a Claim if You Expect to Receive Money
People who received these calls are eligible for a payment, but they first need to file a claim. A website to file that claim has not yet been set up but is expected to go live soon. People affected by the lawsuit may also receive a notification about the settlement via email or regular mail.
Those intending to file a claim should have received a call or a voice mail from the company within that time frame. If the claimant has proof they can provide it, but they can also provide their personal information as well as their phone number and the settlement team can check for eligibility.
4. How Much Money Will Claimants Get
People whose claims are proven to be accurate will receive a cash settlement that could range from $100 to $1,000. The amount of people who file a claim will affect the amount of money awarded.
The initial settlement was for $14 million, but it is expected that only $8 or $9 million of that will be paid out to customers. The remaining money will go towards covering legal and case management fees. It will take up to 9 months for people to receive their award.
5. Credit One is a Controversial Company
Credit One has been a controversial company since its inception. While this isn’t all that surprising for a company that grants cards to people with less-than-ideal credit, but Credit One has more claims against it than most companies.
Several lawsuits have been filed against the bank. In one suit, a customer reported that they had received 465 robo calls to collect a $652 debt. In another suit. In 2022, a judge found that the bank had tried to collect debts from more than 280,000 cardholders whose debts had already been charged off.
6. There is Another Large Suit in the Works Against the Bank
Credit One is now facing another Class Action suit that alleges far more than the recently settled one. One of the main issues in this suit is the way that the bank reported payments to credit bureaus.
The suit claims that the bank did not report payments in a timely or accurate manner, which could affect the credit score of cardholders. Since many customers have used Credit One to rebuild their credit this could be especially damaging.
7. The Suit Also Claims That There Were Exorbitant Fees
Since the cards generally went to people with low credit scores, many of the customers of Capital One are dealing with very high interest rates. This makes it so that they can face steep fees after missing payments. And the suit claims that not only were these fees high, they were excessively high.
In addition to high fees, there were also penalties associated with missing payments. This is standard for most credit card banks, but Credit One had additional penalties for missing multiple payments within a six month time period. These charges are also included in the suit.
8. Credit One is Also Being Accused of Not Responding to Customer Complaints
Due to the issues with reporting and fees, many Credit One customers were eager to contact customer service with their complaints. According to the lawsuit their complaints went mostly unheard, as cardholders say they had issues with contacting representatives either by phone or email.
Between the years of 2022 and 2025, there were more than 1,400 complaints from consumers alleging that Credit One refused to resolve their issues. This issue is also part of the current lawsuit against Credit One Bank.
9. Conclusion
People regularly get angry about the high volume of robocalls they receive, but other than attempting to add yourself to the national do-not-call list, they often have no recourse. At least with this new settlement, some consumers were harassed with an unreasonable number of phone calls.
People who have had a bad experience with the bank can file a claim in either suit. For anyone who does, it is certainly worth it to try to get involved.
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