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Credit One was hit by a class action lawsuit in a New York federal court by two customers alleging that the credit card company illegally charges fees when express payments are made online.
Plaintiffs Anthony Waldon of New York and Jason Goldstein of Florida claim that they were both charged fees by Credit One for making “express payments” online on their credit card accounts despite the fact that the payments were seemingly processed by the company’s automated system.
The Truth in Lending Act (TILA) forbids creditors from imposing “a separate fee to allow consumers to make a payment by any method, such as mail, electronic, or telephone payments unless such payment method involves an expedited service by a customer service representative of the creditor,” according to the Consumer Financial Protection Bureau (CFPB).
Under the federal law, “expedited” means a service that would credit the payment the same day or, if made after an established deadline, the next business day. To be considered a service provided by a customer service representative, TILA says the service must be administered by a live agent, in-person, on the telephone, or electronically.
Waldon and Goldstein claim Credit One’s online express payment processing is automated and devoid of any interaction with a live agent.
“Credit One claims the express payment option it offers will be processed by a live representative,” the class action lawsuit says. “However, after an online customer selects the option to make the payment, the only ‘live’ interaction they receive is similar to a chatbot.”
The entire transaction lacks “any meaningful or legitimate live representative’s role” and the automated “chatbot” does not inform the customer of other, lower-cost alternatives to making the online express payment, the Credit One class action lawsuit explains.
The fee, according to the class action, is $9.95 per express payment.
The Credit One customers allege that they have reason to believe Credit One has raked in more than $5 million by charging the express payment fees.
Credit One’s customers often turn to the online express payment option to avoid other fees for late-payments on their credit card accounts, according to Waldon and Goldstein. The company limits the number of payments a customer can make each month to four, “which makes it more difficult for them to pay off their balances,” the class action claims.
What’s more, when payments are made, they are frequently posted to the accounts later than the customer expects them to, the Credit One customers claim.
“Credit One’s acts are abusive because they take unreasonable advantage of a consumer’s lack of understanding of the material risks, costs, or conditions of the express payment service,” the class action lawsuit argues, “and the consumer reasonably relies on Credit One to act in their interests.”
The plaintiffs are accusing Credit One of violating several consumer protection laws, including New York state business law, the Florida state’s Deceptive and Unfair Trade Practices Act, and the federal Truth in Lending Act. They also claim the company has engaged in unjust enrichment by making money at their customers’ expense.
Waldon and Goldstein are asking the federal court to certify their case as a class action lawsuit and to permit them to represent all Credit One customers in New York and Florida who were charged express payment fees for making express payments online.
Have you ever been charged a fee by Credit One for processing an express payment on your account online? Were you made aware of all the options available to you to make a payment on your account beforehand? Tell us about it in the comment section below.
The plaintiffs are represented by Spencer Sheehan of Sheehan & Associates, P.C.
The Credit One Class Action Lawsuit is Anthony Waldon, et al. v Credit One Bank, N.A., Case No. 7:20-cv-10003, in the U.S. District Court for the Southern District of New York.
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1,201 thoughts onCredit One Earned More Than $5M Through Express Payment Fees, Class Action Lawsuit Claims
I dealt with same,also posting payments late to take on their late fee more than twice….
Yes everytime I paid I had to pay Express so my payment wouldn’t be late…
Every time I pay my bill I get charged that fee
I had to pay too and I been with Credit one for years now
While living in N.Y I paid 7 times for express payment D. Turner
Same here. I had to pay the fee if I wanted the payment to be on time.
Me too
What about the state of MA? How can we be included?
Sure did …they are horrible!!!!!
Yes I forgot about my payment due date , called made express payment to agent over phone , then realized I was charged a fee .
It happened to me, i had to make the payment by a certain time. Had to pay extra to make sure it posted on the due date. Once paid off I canceled the credit card
Please add me, I had figured that was the only way to make your payment and avoid a late fee. I’ve been charged the express fee at least a dozen times.