Credit One Bank To Pay $10.2M in Penalties for Harassing Phone Calls

"The civil complaint alleged that Credit One had a policy allowing its vendors to make eight calls per day, plus an additional two calls per day under certain circumstances on overdue credit card accounts; and that the calls could be placed on consecutive days."

"Making repetitive and unreasonable numbers of phone calls to people who owe debts is against the law in California because it is harassment. 'Bombarding consumers with calls over debts is illegal,' Rosen said in a statement. 'Folks may owe money, but companies owe their consumers reasonable civility and consideration.'"

"The judgment was entered on Feb. 19 in Riverside County Superior Court, which ordered the bank and its agents to implement policies and procedures to prevent unreasonable and harassing debt collection calls to California consumers, including compliance with state and federal law concerning consumer debt collection calls."

Credit One Bank has agreed to pay $10.2 million to settle a civil lawsuit brought by the California Debt Collection Task Force for making excessive and harassing calls to collect consumer debts. The bank's policy allowed vendors to make eight calls per day, plus two additional calls under certain circumstances on overdue credit card accounts, with calls permitted on consecutive days. California law prohibits such repetitive calling practices as harassment. The settlement requires Credit One to implement policies preventing unreasonable debt collection calls and comply with state and federal regulations. This marks the fourth major settlement by the task force, following previous judgments against Capital One, Synchrony, and Allied. The $10.2 million comprises $9 million in civil penalties and $1.2 million in investigative costs.

Read at San Jose Inside