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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
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Yes please add me. I’ve had this card for about a year. It wasn’t until I just made my most recent payment that I realized Credit One take the “express fee” from my debit card that I use to make the payment but they also charge it to my credit card and therefore double charging me. I also recently used this credit card for a temporary hold on a rental vehicle. My rental was paid using my debit card and the credit card hold was supposed to be reversed. The rental company did what they were supposed to do and reversed the charge but credit one still has it listed as a pending transaction and there is absolutely nobody I can talk to you about it. The only option is to write a letter, I don’t see how that’s going to help anything. Also, on their website they have many different phone numbers listed. When you call each different phone number, they’re all the same message with all the same options. They have literally trapped me into staying with them.
They call me about 20 times a week, the yearly fee is ridiculous. I’ve tried to pay my debt only for it to sit for weeks at a time and nothing ever got paid now interest has my debt behind what I can pay right now because I lost my job due to Hurricane Ian then I lost my car.
Add me too, these people literally pray on people and hope they end up in their collections department, which is LVNV Funding that are both owned by Sherman Capital, L.L.C., which also owns and operates a couple more collection agencies. Now talk about a game plan these crooks laid out, this whole corporation needs to be extinguished from existence, that and the attorneys who take up their cases, all need to be expelled from practice.
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Yes they robbed me
I have experienced this too often with credit one and it takes several days for payments to apply to account. Payments and credits do not apply in real time.