The US-based Credit One Bank is a services provider in the banking sector. The company is known for its best in class credit card, loan and savings account services offered to US citizens. The company got into trouble due to a severe data breach that was found in the year 2019. The breach resulted in data of the company’s customers to be made public. The public data was then used in all sorts of data misappropriation to make calls without prior authorization from the customers.
Therefore, the aggrieved customers had to file a Credit One Bank $14 million Class Action Settlement Lawsuit claiming compensation for the damages. The suit alleged that the Credit One Bank was unsuccessful in placing adequate measures that could effectively safeguard its customer’s sensitive personal contact information which was stored in the company’s corporate servers.
Credit One Bank $14 million Settlement 2025
Such negligent behaviour along with the inaction after breach caused this severe data misappropriation that adversely impacted the data privacy of affected customers. These customers had to experience unwanted marketing calls and even phishing attacks because of the said data breach. Thus, the Credit One Class Action Lawsuit had to be filed to remedy the adversities caused by said data breach. It was estimated that the leaked data affected approximately millions of customers in the U.S.. These are the customers who had been using banking services of the Credit One Bank between 2014 and 2019. Finally, the lawsuit was settled and it was found that the company violated the Telephone Consumer Protection Act and the Credit One Bank was directed to pay compensation to each affected customer in lieu of their losses.
The settlement fund was in the form of a $14 Million corpse fund created solely to remunerate the mental harassment and certain financial losses, if any. This settlement was in response to over 1400 complaints that were raised against the Credit One Bank since the reveal of the said data breach. In order to qualify for the share in the $14 million fund the customer has to be an active customer of the Credit One Bank during the period of 2014 and 2019. The customers had to provide transaction details and valid identification proof to be deemed eligible for receiving share in the settlement. The individual customer can get up to $1000 if qualified under this settlement.
Credit One Bank $14 million settlement Quick Details
| Title | Credit One Bank $14 million settlement |
| Country | The United States of America |
| Issue | Data Breach of Credit One’s customers who had been using banking services from the year 2014 to 2019 |
| Company | Credit One Bank |
| Settlement Amount | Class Action Lawsuit Settlement worth $14 |
| Individual Share | Up to $1000 |
| For more information | www.creditonebank.com/ |
How did the Breach Happen in Credit One Bank?
The data breach had happened because of unauthorized access to the customer database and illegitimate access privileges to third-party tele-callers. This data was stored in the corporate servers assigned to the Credit One Bank. The data that was obtained by other companies and was used for marketing calls to even phishing attempts. The data that was leaked had included very sensitive personal information, such as contact details of the customers and the bank account details associated with all these citizens.
It was clearly established in the class action lawsuit that the Credit One Bank has not taken adequate necessary data security measures including active monitoring of the cloud storage and layered firewalls to identify and timely flag any unauthorized or malicious cyber-attacks. Such systemic vulnerabilities, in turn, had caused so much mental trauma and even financial losses to these affected Credit One’s customers. The data breach had left these customers vulnerable to cyber-scammers. For that reason, the court and relevant federal authorities favoured the aggrieved customers and ordered the settlement in favour of those who had suffered any financial losses or were subjected to any cyber-attacks due to the said Credit One Data Breach.
Who is eligible to receive remuneration from the Credit One Bank settlement?
The primary eligibility criteria to file a claim under this Credit One Class Action Settlement and receive a payout for the damages due the said data breach is that the claimant has to be a customer of the company during the period of 2014 to 2019. The eligible settlement of these claims will be approved for damages due to mental trauma, breach of personal data privacy and direct out-of-pocket losses. The claims can be made only up to the official deadline and no claim applications filed after this deadline will be entertained. It was necessary to do so that the settlement shares could be decided as per the number of eligible claim applications that was received by the deadline.
What remedy will be available for those who fail to file a claim?
The payouts to all the eligible customers under the Credit One Class Action Lawsuit Settlement had started disbursement. If the deadline for claiming any share in settlement had passed then no probability of getting a share payment or reissuance of allocated payments can be availed. Further, all the administrative options associated with the claim under this settlement will also be closed. Therefore, it is imperative to file a claim as soon as possible to encash the share checks and to avoid being left out from receiving the adequate share. Further, it is necessary to clearly establish the banking relation with the Credit One Bank between 2014 and 2019 by providing requested details such as bank transaction details and valid identity proof for Credit One Bank $14 million Settlement 2025.
