Capital One's Alleged Harassment Phone Calls Lead To $10.2M Judgment In Riverside Court

RIVERSIDE, CA — Capital One Bank N.A. and its agents engaged in unlawful debt collection activities in California, according to Riverside County District Attorney Mike Hestrin. As a result, the financial institution was ordered to pay $10.2 million in civil penalties and investigative costs.

On Friday, Hestrin announced the settlement in the civil lawsuit against the Nevada-based financial services company. The suit, which was filed in Riverside Superior Court, was brought by a statewide team of district attorneys. The investigation into Capital One was handled by the California Debt Collection Task Force, a statewide law enforcement team composed of district attorneys from Los Angeles, Riverside, San Diego, and Santa Clara counties.

The complaint alleged that Credit One — directly and through its agents — made debt-collection phone calls to California residents at "unreasonable and excessive frequency."

At times, Credit One also persisted in calling consumers after they stated they no longer wished to receive the calls or when calls were made to wrong numbers, according to the complaint.

Credit One denied the allegations.

The $10.2 million stipulated judgment was signed and entered by Riverside Superior Court Judge Harold Hopp on Feb. 19. The judgment also requires Credit One to comply with state and federal laws governing consumer debt collection calls and to maintain certain business practices designed to ensure compliance with those laws.