Credit One Bank
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Predecessor | First National Bank of Marin |
| Founded | July 30, 1984 in San Rafael, California, U.S. |
| Headquarters | Las Vegas , United States |
Area served | United States |
| Owner | Sherman Financial Group |
| Website | creditonebank |
Credit One Bank, N.A., based in Las Vegas, Nevada, focuses on providing credit cards tailored for individuals with lower credit scores. It operates under the ownership of Sherman Financial Group, recognized as one of the largest purchasers of consumer debt in the United States. Although its name and branding resemble those of Capital One, Credit One is an entirely separate entity with no corporate connection.
History
The institution was originally established on July 30, 1984, under the name First National Bank of Marin in San Rafael, California. It achieved status as a designated "credit card bank" in June 1996. Ownership by Kjell Qvale preceded its relocation to Las Vegas, Nevada, in November 1998.
Sherman Financial Group acquired the bank in 2005, and on February 1, 2006, it officially adopted the name Credit One Bank, N.A. That same year, the bank unveiled a new logo incorporating a curved "swoosh," which bore resemblance to Capital One’s rebranding effort in 2008. This likeness led to some consumer confusion but simultaneously contributed to growth in clientele for both institutions.
In 2018, Credit One inaugurated a new headquarters building, which was expanded in 2021 with an additional structure adding 150,000 square feet.
Litigation and settlements
In 2001, following an inquiry by the Office of the Comptroller of the Currency, the bank reimbursed $4 million to customers who had canceled cards after discovering their credit limits—calculated after fees and deposits—were insufficient for intended purchases. Three years later, in 2004, it paid $10 million related to allegations that it encouraged cardholders to apply security deposits to new accounts, effectively reducing available credit. In both instances, there was no admission of fault by the bank.
A lawsuit filed in 2015 arose when a customer received 465 robocalls from Credit One during attempts to collect a $657 debt, violating the Telephone Consumer Protection Act. The court awarded the plaintiff $232,000 in 2020, equating to $500 per call.
In January 2019, Mike Hestrin, district attorney for Riverside County, California, launched an investigation into a third-party vendor associated with Credit One for allegedly making debt collection calls that breached California regulations. The bank responded by suing Hestrin’s office, asserting that oversight belonged to the Office of the Comptroller of the Currency instead.
A lawsuit filed in 2020 accused Credit One of breaching the Truth in Lending Act by frequently delaying customer payment postings unless an additional "express payment" fee was paid. This matter was moved to arbitration in 2021.
In June 2022, a bankruptcy court held Credit One responsible for attempting to collect debts that had been discharged through bankruptcy filings from approximately 288,000 credit card holders. In January 2024, the bank sought to revoke the class action certification related to this case.
A legal action initiated in 2023 challenged Credit One over reporting disputed information to credit bureaus. The bank prevailed at summary judgment; however, this decision is currently under appeal.
Reception
The Ascent, affiliated with The Motley Fool, assigned Credit One Bank’s credit card a rating of one star out of five. While praising its accessibility for consumers with poor credit and its cash-back rewards program, it criticized the complicated application procedure and elevated fee structure.
As of September 2024, Credit One Bank holds an A+ accreditation from the Better Business Bureau (BBB), despite an average customer rating of only 1.1 out of 5 stars.
Sponsorships
Credit One Bank directs its sponsorship efforts primarily toward the sports sector, acting as the official credit card partner of NASCAR in the United States. The bank has backed NASCAR Cup Series racers such as Jamie McMurray in 2017 and Kyle Larson from 2018 through 2020.
Beginning in 2019, Credit One Bank formed a partnership with the Las Vegas Raiders (NFL), launching a credit card featuring the team's branding and supporting the Maxx Crosby Foundation. Additionally, the bank holds the naming rights for Credit One Stadium located in Charleston, South Carolina, which hosts the annual Women's Tennis Association Charleston Open.
Other collaborations include sponsorships with Minor League Baseball’s Las Vegas Aviators, the NHL’s Vegas Golden Knights, and the WWE Championship. The bank offers branded credit cards for both WWE and the NHL franchise as part of these alliances.