Credit One Bank to pay $10.2 million for harassing collection calls

If your phone is ringing non-stop from a creditor or collection agency, you didn’t imagine it – and it’s not legal. A $10.2 million settlement announced today by the Los Angeles County District Attorney’s Office proves just that.

On February 20, 2026, a judgment was entered in Riverside County Superior Court requiring Credit One Bank to pay $9 million in civil penalties and $1.2 million in investigative costs – totaling more than $10 million – to resolve a civil consumer protection lawsuit filed jointly by the district attorneys of Los Angeles, Riverside, San Diego and Santa Clara counties. (Source: MyNewsLA.com)

“Credit card companies have no right to harass consumers and invade their privacy with non-stop phone calls to collect debts.”– Nathan Hochman, Los Angeles District Attorney

What has Credit One Bank actually done?

The lawsuit alleged that Credit One had a written policy that allowed its suppliers to do this eight calls per dayplus to two additional calls under certain circumstances – on the same account, on consecutive days, for overdue credit card balances. That’s potentially ten calls a day, day after day, until you pay. (Source: LA Daily News)

This is not a gray area. California Rosenthal Fair Debt Collection Practices Act – a state law that is broader than the federal FDCPA and covers original creditors, not just third-party collectors – prohibits “contacting consumers so frequently that it amounts to harassment.” Ten calls per day are eligible. The statute says so, and a federal jury already agreed.

This was not the first warning

The 2026 case stemmed from an investigation by the California Debt Collection Task Force, a statewide law enforcement team made up of the same four county district attorneys. They had been building this business for years – and they won. The company has admitted no wrongdoing, which is standard language in civil settlements, but the verdict stands and the money is real.

What this means for you if you are being harassed

This is what I want people to understand: the law already protects you from this behavior. Credit One just got caught doing it on an industrial scale with an explicit written policy. But the same rules apply to your creditors, your debt collectors, and anyone who reaches into your pocket through your phone.

For residents outside of California, the federal Fair Debt Collection Practices Act (FDCPA) still prohibits harassment, although it only applies to third-party debt collectors. If you believe you are being harassed by a debt collector (excessive phone calls, calls before 8am or after 9pm, calls to your workplace, threats) you have federal remedies available to you.

The real problem that no one talks about

I’ve been helping people with debt since 1994. The phone calls are often the worst. Not because of the money you owe, but because the intimidation makes it impossible to think clearly, take stock of your options, or make a rational decision about your next step. Ten phone calls a day cause panic. And when you panic, you make bad decisions: You agree to payment plans you can’t afford, you hand over money you need for rent, or you cash out retirement savings that should never be touched.

If you encounter difficult collection calls, document everything: date, time, phone number, what was said. That documentation becomes evidence. And if you need help figuring out your real options for the underlying debt, the Find Your Path tool walks you through what makes sense for your specific situation, without anyone trying to sell you something.

The settlement terms going forward

In addition to the $10.2 million payment, the settlement requires Credit One Bank to comply with state and federal laws regarding consumer debt collection in the future. This means that there is no longer a written policy allowing ten calls per day. The California Debt Collection Task Force will be watching.

Frequently asked questions

How often can a debt collection agency legally call me?

Under the federal Fair Debt Collection Practices Act (FDCPA), debt collectors cannot make such frequent calls that constitute harassment. California’s Rosenthal Act also extends this to original creditors. There is no specific number set forth in federal law, but a pattern of excessive calling – such as the 10 calls per day that Credit One allowed – is the type of conduct that courts and regulators deem actionable. If you’re getting calls multiple times a day, you probably have reasons to demand they stop.

Does this settlement mean I can file a claim against Credit One Bank?

This was a civil enforcement action brought by prosecutors – not a class action settlement with a claims process for individual consumers. If you believe you have been personally harmed by Credit One Bank’s calling practices, you should consult a consumer protection attorney about your individual rights under the Rosenthal Act, or FDCPA. The settlement does not automatically put money in your pocket.

What is the Rosenthal Fair Debt Collection Practices Act?

The Rosenthal Fair Debt Collection Practices Act is California’s state-level debt collection law. It’s broader than the federal FDCPA because it applies to original creditors — the companies you actually owe money to, such as banks and credit card issuers — and not just third-party debt collectors. It prohibits harassment, false statements and unfair practices in debt collection. Credit One Bank was subject to the Rosenthal Act as the original creditor.

What should I do if a creditor or collection agency calls me excessively?

First, document each call: date, time, caller number, and what was said. You can send a written letter demanding that they stop calling you. This is your right under both the FDCPA and the Rosenthal Act. If discussions continue after that, you may have legal recourse. A consumer protection lawyer can advise you. In the meantime, addressing the underlying debt is the only permanent solution: use the Find Your Path tool to understand your real options.

What is Credit One Bank?

Credit One Bank, NA is a Nevada-based credit card issuer that primarily serves consumers with limited or damaged credit. It is not affiliated with Capital One – a common point of confusion. Credit One is one of the larger subprime credit card issuers in the United States. The company was previously found liable by a federal jury in 2019 for violations of the Rosenthal Act, before this $10.2 million state settlement in 2026.

Consumer debt expert and investigative writer. Survivor of Personal Bankruptcy (1990). Award-winning author of the Washington Post. Exposing debt fraud since 1994.