Credit One Bank, a Nevada-based credit card provider, has reached a settlement worth $14 million to resolve claims that it violated federal laws related to robocalls. The settlement stems from a class action lawsuit alleging that the bank made unsolicited automated calls to consumers without obtaining their consent between 2014 and 2019.
Consumers who received these automated calls may be eligible for compensation, which could be as high as $1,000, depending on the number of claims filed. According to The Sun, while the bank has not admitted to any wrongdoing, the agreement serves to close the case and avoid further litigation.
Details of the Settlement
Under the terms of the settlement, eligible consumers who received automated robocalls from Credit One Bank or its affiliates will be able to claim compensation. While Credit One Bank has not admitted to any wrongdoing, it agreed to the settlement to avoid further legal proceedings.
The total amount available for distribution is $14 million, and individual payouts could reach as much as $1,000, depending on the number of claims filed. The final amount for each class member will vary, but sources estimate that consumers might receive up to $1,000.
Who Is Eligible for Compensation?
To be eligible for compensation, consumers must have received robocalls from Credit One Bank or its affiliates between 2014 and 2019. These calls were made without prior consent from the recipients, violating the federal Telephone Consumer Protection Act (TCPA).
Consumers who can provide documentation, such as phone records, showing they received these robocalls may be entitled to a higher payout. Those without proof may still qualify for compensation, but likely for a lower amount.
How to Claim Compensation
The official settlement website for filing claims is not yet available, and crucial dates, such as the claim deadline and the date of the final approval hearing, are still to be announced. Affected individuals will need to file their claims once the website is live, which is expected to be soon.
The claims process will be key to determining how much compensation each eligible credit card user will receive.
The $14 million settlement represents a significant resolution for Credit One Bank, which will avoid further litigation. While the company has not admitted to violating the law, the settlement underscores the growing scrutiny on businesses that engage in robocalling practices.
Credit card users’ right to privacy continues to be an important issue in the context of automated marketing calls.
