How Credit One Bank Made Billions Off People With Bad Credit
What Credit One’s rise reveals about the state of financial inequality in America
If you’ve ever confused Credit One with Capital One, you’re not alone.
The name, the logo — almost identical. But behind that familiar design is a billion-dollar business model targeting America’s most financially vulnerable. And it’s made two men very rich.
Together with his elusive partner, Brett Hildebrand — an MIT-trained math whiz who avoids the spotlight — Navarro has turned a subprime lending strategy into a financial empire.
Credit One’s Business Model: Fees First
While most banks make money from interest, Credit One thrives on fees — lots of them.
$2.4 billion in customer fees since 2010
$1.1 billion in interest income during the same period
Products like “Credit Protection” rake in $350 million/year
Average credit lines often start at just $300
One former exec summed it up:
“It felt a little slimy. You’re gouging customers with fees — and not giving them ways to really help themselves.”
Customers Confused, Trapped, and Angry
Some customers thought they were signing up for Capital One. Others ended up paying more in fees than they ever charged on the card.
Geet, a former customer, signed up as a student.
“I paid over $800 in fees on a $300 credit line. That’s a lot of money when you don’t have any.”
Craig DiPaola, another user, claims he was enrolled in Credit Protection without consent — and charged $250 over 4 years.
Legal Battles, Lawsuits, and Defaults
California sued Credit One in 2021 for harassing debt collection calls
Class-action lawsuit in NY led to a judge ordering the bank to pay up to $288M in damages
A fraud investigation is underway into one of Credit One’s attorneys for withholding ownership info during court proceedings
And while the bank claims a charge-off rate of 8%, insiders say it’s closer to 14% - well above the industry average of 4.7%.
Where the Money Goes
Despite the controversy, Navarro and Hildebrand aren’t hurting:
$3.7 billion+ in dividends and distributions between them
Navarro has invested hundreds of millions into tennis, real estate, schools, and even tried to buy the Carolina Panthers
Hildebrand remains behind the curtain, investing in fintech and biotech startups
Bottom Line
Credit One insists it offers a lifeline to those with limited credit options. Critics say it’s exploitation in disguise.
JD Power ranked Credit One worst credit card issuer in America for eight straight years.
👀 And while Navarro’s public profile grows — with political allies and philanthropic efforts in Charleston — the core of his wealth stems from a business built on hardship.
💬 What do you think?
Is Credit One offering a necessary service to underserved communities, or profiting off the financially desperate?
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