If you’ve been getting annoying robocalls from Credit One Bank over the years, there’s some good news heading your way. The credit card company has agreed to pay $13.8 million to settle a massive class action lawsuit, and you might be entitled to a piece of that money.
This isn’t just another corporate fine that disappears into thin air. Real people who received unwanted automated calls could receive compensation ranging from $100 to $1,000. But before you start planning how to spend your payout, let’s break down everything you need to know about this settlement.
Why Credit One Bank Had to Pay Up
Between 2014 and 2019, Credit One Bank and its partners made a serious mistake. They were calling people using automated dialing systems without getting proper permission first. These weren’t just a few scattered calls here and there – we’re talking about systematic violations that affected thousands of consumers.
The calls typically fell into two categories: payment reminders for existing customers and marketing promotions trying to sell credit cards. But here’s where things got really problematic – the bank didn’t just call their own customers. They were also bothering people who had absolutely no relationship with Credit One Bank whatsoever.
Many recipients of these calls explicitly asked to be removed from the calling lists, but the calls kept coming anyway. This behavior directly violates the Telephone Consumer Protection Act (TCPA), a federal law designed to protect consumers from unwanted automated calls and text messages.
Understanding the TCPA and Your Rights
The TCPA isn’t some obscure regulation buried in legal documents. It’s a powerful consumer protection law that gives you control over who can contact you and how. Under this law, companies cannot use automated dialing systems or play prerecorded messages to your phone without your explicit consent.
This protection extends to both landlines and cell phones, and it doesn’t matter whether you’re a customer of the company or not. If they call you without permission using automated systems, they’re breaking federal law.
The penalties for TCPA violations are substantial – companies can be forced to pay between $500 and $1,500 per illegal call. When you multiply that by thousands of unauthorized calls over several years, you can see how Credit One Bank ended up facing such a large settlement.
Are You Eligible for Compensation?
The big question everyone wants answered is simple: “Can I get money from this settlement?” Here are the key criteria that determine eligibility:
Time Period: You must have received automated or prerecorded calls from Credit One Bank or its affiliates between 2014 and 2019. This five-year window is specifically outlined in the lawsuit.
Permission Status: You did not give explicit consent to receive these automated calls. This is crucial – if you specifically agreed to receive marketing calls or payment reminders through automated systems, you might not qualify.
Phone Number Ownership: The phone number that received the calls must have been yours during the relevant time period. It doesn’t matter if you were a Credit One Bank customer or had never heard of the company before they started calling.
Documentation: While you don’t need to have detailed records of every call, any evidence you can provide (like call logs, recordings, or even notes about dates and times) can strengthen your claim.
The settlement administrator will cross-reference your phone number with Credit One Bank’s calling records to verify that unauthorized calls were actually made to your number.
How Much Money Can You Expect?
The total settlement amount is $13.8 million, but that doesn’t mean it gets divided equally among all claimants. Several factors will determine how much individual recipients receive:
Legal and Administrative Costs: After paying attorneys’ fees and covering administrative expenses, approximately $8 to $9 million will be available for distribution to consumers.
Number of Valid Claims: The fewer people who submit valid claims, the more money each eligible recipient will receive. This creates an interesting dynamic where early and thorough claimants might benefit from others not participating.
Claim Validation: The settlement administrator will review each claim to ensure it meets the eligibility requirements. Invalid or fraudulent claims will be rejected, potentially increasing payouts for legitimate claimants.
Based on these factors, individual payments are expected to range from $100 to $1,000. The exact amount you receive will depend on the total number of approved claims and the strength of your particular case.
Step-by-Step Claim Process
Once the court gives final approval to the settlement, the claim process will begin. Here’s what you need to know about submitting your claim:
Official Notification: If your phone number appears in Credit One Bank’s calling records, you should receive an official notification via email or postal mail. This notice will include specific instructions and deadlines.
Settlement Website: An official website will be launched where you can submit your claim online. Be cautious of fake websites – only use the official site referenced in your notification or court documents.
Required Information: You’ll need to provide personal information including your name, address, phone number, and details about the unauthorized calls you received.
Supporting Evidence: While not required, any documentation you can provide about the unwanted calls will help support your claim. This might include call logs from your phone company, notes about specific calls, or records of requests to stop calling.
Payment Method: You’ll typically have options for how to receive your compensation, such as a mailed check, PayPal transfer, or direct deposit to your bank account.
Deadline Compliance: Claims must be submitted within the specified timeframe, usually 60 to 90 days after the settlement website launches. Missing this deadline means forfeiting your right to compensation.
Timeline for Receiving Your Payment
Patience is essential when dealing with class action settlements. The payment process involves several stages that can take many months to complete:
Initial Review Period: The settlement administrator will spend 3 to 5 months reviewing and validating claims. During this time, they may contact claimants for additional information or clarification.
Final Approval and Appeals: Even after claims are processed, there may be appeals or objections that delay final approval. This process can add several additional months to the timeline.
Distribution Phase: Once everything is finalized, payments typically begin 6 to 9 months after the court’s final approval of the settlement.
The entire process from claim submission to receiving payment often takes 12 to 18 months. While this might seem lengthy, it’s actually relatively standard for class action settlements of this size.
Red Flags and Scam Prevention
Unfortunately, legitimate settlements like this often attract scammers who try to exploit confused consumers. Here are some warning signs to watch for:
Upfront Fees: Legitimate settlement claims never require you to pay money upfront. If someone asks for payment to process your claim, it’s a scam.
Unsolicited Contact: Be wary of people who contact you claiming to help with your settlement claim, especially if they request sensitive personal information over the phone.
Pressure Tactics: Legitimate settlement processes don’t use high-pressure sales tactics or claim that you need to act immediately to secure your payment.
Unofficial Websites: Only use the official settlement website referenced in court documents or official notifications. Scammers often create fake websites that look legitimate but are designed to steal personal information.
The Bigger Picture: Consumer Protection
This Credit One Bank settlement represents more than just compensation for annoying phone calls. It’s part of a broader effort to hold companies accountable for respecting consumer privacy and communication preferences.
The TCPA has been instrumental in protecting consumers from unwanted marketing calls, but enforcement relies heavily on individuals being willing to stand up for their rights. When consumers participate in class action lawsuits like this one, it sends a clear message to other companies about the consequences of violating federal communication laws.
Credit One Bank has faced criticism in the past for various business practices, including hidden fees, unclear terms, and poor customer service. This settlement adds to the company’s regulatory challenges and demonstrates the importance of consumer vigilance in holding financial institutions accountable.
Taking Action and Moving Forward
If you believe you’re eligible for this settlement, don’t wait to take action. While the official claim process hasn’t begun yet, you can start preparing by:
Gathering Documentation: Look for any records of unwanted calls from Credit One Bank during the 2014-2019 period. Phone bills, call logs, or even calendar notes can be helpful.
Monitoring for Official Notices: Keep an eye out for official communications about the settlement, either by mail or email.
Staying Informed: Follow reliable news sources or legal websites for updates about the settlement approval process and claim deadlines.
Protecting Your Information: Be cautious about sharing personal information related to the settlement, and only interact with official channels.
Remember, participating in this settlement isn’t just about getting compensation – it’s about standing up for your rights as a consumer and helping ensure that companies follow proper procedures when contacting customers.