A U.S. bank is paying over $10 million to settle claims of customer harassment. Credit One Bank faced accusations of instructing vendors to make excessive calls to collect credit card debt, even after customers requested the calls cease.
The lawsuit, filed by district attorneys in four California counties, alleged Credit One permitted agents to call customers up to 10 times daily. The bank is accused of violating consumer protection laws and privacy rights.
Judge Harold Hopp has ordered Credit One to adhere to state and federal debt collection laws, imposing $9 million in civil penalties and $1.2 million in investigative costs. The bank denies any wrongdoing.
Los Angeles County District Attorney Nathan J. Hochman stated, "Credit card companies do not have the right to badger consumers and invade their privacy with non-stop phone calls to collect debt." He emphasized a commitment to holding companies accountable for unlawful practices.
Credit One is the 526th-largest commercial bank in the U.S. with $1.921 billion in assets.