Credit One Bank Hit with Class Action Over Counter-Claim to Collect Sold-Off Debt

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A Florida man has filed a proposed class action against Credit One Bank, N.A. stemming from a previous case he filed against the company on December 29, 2016 over alleged violations of the Telephone Consumer Protection Act (TCPA) and the Florida Consumer Collection Practices Act.

According to the most recent complaint, the defendant sent the plaintiff a notice in January 2017 notifying him that his $991 balance was sold to LVNV Funding, LLC, a non-party to this case. Despite selling and assigning its rights to the plaintiff’s debt, Credit One Bank filed a counter-claim against the plaintiff in May 2017 attempting to collect the $991, the suit claims.

“The counter-claim filed by Credit One Bank seeks to collect an alleged debt when [the defendant] knew [the plaintiff] no longer owed any money to Credit One Bank as the debt was previously assigned, sold and Credit One Bank has no further rights to the debt or to enforce the debt,” the complaint charges, alleging the sole purpose of the defendant’s counter-claim was to harass the plaintiff into paying an amount he does not owe.