The complaint has been investigated and
resolved to the customer's satisfactionResolved Credit One Bank — unethical and predatory business practices
resolved to the customer's satisfaction
The specifics of MY experience:
My financial situation had improved dramatically in 2011 so I decided to start trying to rebuild my credit. I got a credit card with Credit One Bank, paid for monthly "credit protection insurance" to cover costs should I be laid off from my job.
• I read the agreement and thought the $75.00 annual fee was a bit excessive but I was determined to begin building my credit again.
• The “Credit Protection Insurance” seemed like a good deal, $4/month and the employment situation in Florida was precarious at best so I signed up for it.
A few months after I was approved for a credit card, I WAS subsequently laid off from my job, they denied my credit protection insurance, and refused to work with me regarding a payment arrangement.
• Before I was laid off from my job, I was making all the payments on time.
• When I say they denied the credit protection insurance, I mean exactly that – I signed up for it, was charged for it monthly, and when the time came that I actually needed it – they denied it out of hand. I tried to arrangement a payment arrangement because I was laid off – they denied THAT out of hand.
After denying my "credit protection" insurance and refusing to work with me on a payment arrangement, I was still unemployed so there was little I could do...They began calling me 10+ times a day (including 2-3 calls before 9am on Saturday and Sunday mornings).
• I started keeping a log of all their harassing phone calls.
I have finally found new employment and am in a situation again to begin making payments, however in the meanwhile $255.00 of penalty fees have accrued on my account (which I see as ridiculous and excessive).
• Actually the $255.00 is outdated; the penalties as of now exceed the original debt.
I am ending up owing more in fees and penalties than the original debt was! My issue is this: being laid off from my job was out of my hands, I reacted as responsibly as could be expected and Credit One bank refused every attempt I made to rectify the situation. Credit One Bank has effectively manipulated my bad fortune to double their profit (in the process violating consumer protection laws regarding harassment)!
I feel as though the public should be warned about this company, and ask that your organization make their practices known so others do not go through what I've gone through.
• I have personally submitted formal complaints against Credit One Bank to: The Federal Trade Commission, the new Consumer Financial Protection Bureau, the State Attorney Generals for my (Florida) and Nevada (Credit One Bank’s state) and the Better Business Bureau of Southern Nevada (Credit One Bank’s district).
Links to Government Regulatory Agencies:
Better Business Bureau of Southern Nevada -
Federal Trade Commission - https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en
Consumer Financial Protection Bureau - https://help.consumerfinance.gov/app/ask_cc_complaint