LOS ANGELES - Capital One has been ordered to pay $2 million in penalties for harassing and annoying phone calls made to California residents.
Riverside County District Attorney Mike Hestrin made the announcement Thursday.
Capital One was sued by district attorney's offices in Riverside, Los Angeles, San Diego and Santa Clara counties after evidence was amassed indicating Capital One's representatives made "unreasonably excessive calls to collect past due accounts," according to the Los Angeles County District Attorney's Office.
The $2 million Capital One was ordered to pay breaks down as follows:
- $1.45 million in civil penalties, $362,500 to each of the four involved District Attorney’s offices;
- $300,000 in investigative costs; and
- $250,000 in restitution capital.
The judgment also includes future limits on phone calls over the next four years, which include a limit of no more than seven calls to an account in a consecutive seven-day period.
Capital One did not admit wrongdoing in the case.
The settlement bears similarities to ones reached in the last few years with Allied Interstate and Synchrony Bank, according to prosecutors.
City News Service contributed to this report.