RIVERSIDE, Calif. — Credit One Bank has agreed to pay $10.2 million to settle allegations it used aggressive and unlawful debt-collection tactics against California consumers, according to reporting by NBC Palm Springs, citing the Riverside County District Attorney’s Office.
Prosecutors said the case, led by the California Debt Collection Task Force — a coalition of district attorneys that includes Riverside County — found the bank and its agents repeatedly violated state debt collection laws by making excessive and unwanted calls. Investigators alleged some consumers continued receiving calls after requesting they stop, while others were contacted in error.
A judge approved the settlement, which includes $9 million in civil penalties and $1.2 million in investigative costs. In addition to the financial payment, the agreement requires Credit One Bank to comply with state and federal debt collection laws and reform its practices to prevent future violations.
As reported by NBC Palm Springs, prosecutors said the settlement underscores that companies must follow the law when pursuing debts and is intended to protect consumers from harassment and ensure fair treatment going forward.