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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
What I don’t understand is you pay the express fee from your card you use to make the payment… then it also becomes a charge added onto your credit card. So you pay the fee twice?? I’ve asked about it and they explained that you don’t pay it twice, but you’re just charged your credit one account and pay it on your next bill. But that doesn’t make sense to me. It’s $4.95 extra that added onto my original payment of say “$100”… so they charge your payment method “$104.95”…
I have an American Express and a Visa from Credit One Bank since 2021 and have made many Express payments to them in order to not be late because they charge double when late and it affects my credit score. I ended up losing my job and they called me about 10 times per day with different phone numbers. I told them I would make a payment as soon as my job started which was starting in a week and then I have to wait another week to get paid and I thought this would end the calls however it didn’t. They then stated do you have 5 or 10 dollars and I didn’t have it. They were begging me for any amount I could pay after I already told them I didn’t even have 5 dollars. I thought it would stop the calls but it didn’t. I said please quit harassing me because I already told them I would make a payment when I got a paycheck. They are so pushy and harassing. I had only missed one payment and they called me 10 times a day. I stopped answering my phone all together. I couldn’t believe how much they were calling me for one late payment, and begging for 5 dollars. If late they double the payment making it hard to catch up. I started struggling with deep depression. After making a payment, it would give me available credit but if I didn’t use that available credit within 2 to 3 days I notice it was gone without any charges being used on my cards. It was strange, so I made sure to use it the same day. Some times my express payment didn’t even go up my account and they would consider me late. Very shady and unprofessional.
has happened a couple times to me thru credit one – most horrible cc company i have ever dealth with
Everytime I made an express payment I was charged a fee. I have 2 cards with then and I can say if I pay one fee the other is not charged dor the other card. They also charged the fee over the phone for express payment as well. If this is illegal I definitely think they need ro be held accountable and definitely need ro be held accountable
I have the same sad story as I’ve been reading how has this company been able to do this for so many years?
EVERY PAYMENT I have made has been through their payment page. It offers standard payment for free or instant payment f4.95. I’ve had these cards for more than five years. That is a hell of a lot of money to me on a fixed income.
I definitely want in on this class action lawsuit… I have full documentation of the thieves monthly practices…
I also on my credit cards to make payments. I’m in the same jam as everyone else. If I cut both of those accounts then I’ll be hit on my credit score.
When my disability payment hits later than normal, which is expected from the government in the first place, it takes me over 7 days from the time I make a payment for it to hit my credit card accounts. Again freaking unreasonable. My disability payment hit late last month and I was instantly charged $40 for a late fee that I have no control over when I get paid.
My contact info:
I have been charged for express payments
How do I file? This has happened to me as well.
I am a victim
I am also a victim 2020-2022
Add me to the class action lawsuit
I get charged those fees all the time and my app would many work so one of my cards had auto pay other one would have to physically every time and express pay fees etc, the worst.