Riverside District Attorney Michael Hestrin did not violate federal law by charging Credit One Bank with illegal debt collection calls, the Ninth Circuit Court of Appeals ruled Feb. 27.
The DA’s Office began investigating Credit One in January 2019, and filed a suit against the bank in state court March 2021. The suit claimed the bank harassed consumers to pay off debts by continually calling them as often as nine times a day, in violation of state law.
The Riverside District Attorney’s Office has not yet responded to a request for comment.
Credit One filed a counter suit against Hestrin Oct. 15, 2020. The counter suit predated the lawsuit because it was originally based on a subpoena Hestrin had filed but later withdrawn.
The bank claimed that Hestrin did not have the power to prosecute a federal bank under the National Bank Act. The NBA prevents county law enforcement from “visiting,” or inspecting, a national bank, and Credit One argued that provision applies to enforcement actions.
Central District of California Judge Jesus Bernal dismissed the bank’s complaint. Bernal found that hearing the case in his federal courthouse would meddle with state proceedings in violation of the Younger Doctrine. Credit One appealed Bernal’s ruling, but found no luck with the Ninth Circuit.
“We hold that the district court was correct to abstain, that the state action was not an exercise of visitorial powers, and that nothing in the NBA prevents district attorneys from suing national banks under non-preempted state laws,” the unanimous published ruling said.
Case information
Case No. 5:21-cv-00872
Appellate Case No. 21-56271
Ninth Circuit Judge Barrington Parker wrote the opinion, which Chief Mary Murguia and Judge Kenneth Lee joined.
Christopher Bellows of Miami’s Holland & Knight argued for Credit One.
Deputy District Attorney Harold Anderson argued for the DA’s Office.
Read Credit One’s complaint here.
Read previous coverage here.
Read Bernal’s ruling here.
Watch the Ninth Circuit argument here.
Read the appellate ruling here.
