Credit One Bank to Pay $10.2 Million to Settle California Debt Collection Lawsuit

A consumer protection case targeting aggressive debt collection tactics has ended with a $10.2 million settlement, according to the Riverside County District Attorney's Office. Prosecutors say Credit One Bank and its agents repeatedly violated state debt collection laws by making excessive and unwanted phone calls to California residents.

The case was handled by the California Debt Collection Task Force, a partnership of district attorneys from multiple counties, including Riverside County. Investigators alleged the company continued calling some individuals even after they asked for contact to stop, while others reported receiving calls intended for the wrong person. Officials said these practices created unnecessary stress and confusion for consumers.

A judge approved the settlement, which includes $9 million in civil penalties and $1.2 million to cover investigative costs, totaling $10.2 million. Beyond the financial payment, the agreement requires the company to follow state and federal debt collection regulations and adjust its practices to prevent future violations.

Prosecutors say the resolution reinforces consumer rights and serves as a reminder that companies must follow the law when attempting to collect debts. They add the outcome is intended to protect residents from harassment and ensure fair treatment moving forward.