Capital One, one of America’s leading banking companies, is currently in the news regarding a major class-action settlement. The company faced serious legal action due to allegations of freezing savings account interest rates at low levels for several years. It is claimed that this action cost customers billions of dollars in lost interest, as interest rates across the country were steadily rising, but the rates on Capital One accounts remained largely stagnant. Now, the company has agreed to a large settlement of $425 million, which will allow millions of customers to recover a portion of their lost interest. A detailed explanation of all aspects of this case is provided below.
Settlement Details and Deadline
The settlement means that all customers affected through their 360 Savings Accounts can now receive a portion of their lost interest. The total amount is set at $425 million, and a large portion of it will be distributed as direct cash payments. No claim form is required to receive payment as part of the settlement. All eligible customers are automatically included in the payment list.
Importantly, the deadline for choosing your payment method is October 2nd. Simply put, missing this deadline may delay or complicate your payment process.
Court Approval Still Pending
Although a settlement has been agreed upon between Capital One and the customers, it still requires final approval from the court. A court hearing is scheduled for November 6th. The court will determine whether the settlement amount is appropriate or needs to be modified. Several state attorneys general are calling the settlement inadequate, making the court’s decision even more crucial.
Who Sued Capital One?
The largest class-action lawsuit was filed in 2024 by customers in a Virginia federal court. It alleged that the bank intentionally kept interest rates low and misled customers.
In addition, the Consumer Financial Protection Bureau (CFPB) also leveled serious accusations against the company. The institution stated that Capital One promoted its 360 Savings Account as a “high-interest account,” claiming its interest rate was among the best in the country. According to the CFPB, these claims were misleading, and the reality was quite the opposite.
The CFPB alleged that Capital One’s strategy cost customers more than $2 billion. Although the CFPB later dropped its lawsuit, its impact lingered on the class-action case.
Other Agencies Also Raised Objections
Capital One wasn’t only facing accusations from customers and the CFPB. New York Attorney General Letitia James also filed a lawsuit against the company, alleging that it misled online savings account holders about interest rates.
In September, James, along with attorneys general from 17 other states, filed a detailed document in court stating that the proposed $425 million settlement was insufficient and would let Capital One off too easily compared to the harm it caused. She clarified that this amount was far less than the billions of dollars in losses suffered by customers.
What Were the Allegations Against Capital One?
The settlement and lawsuits leveled several serious accusations against the company:
- The company promoted the 360 Savings Account as a “high-interest” account, while its rates remained stagnant for several years despite rising rates nationwide.
- The company launched another account—the 360 Performance Savings—which offered interest rates many times higher than the standard 360 account. According to reports, these rates were sometimes 14 times higher.
- Customers claim that these company strategies resulted in over $2 billion in lost interest.
What Are the Main Terms of the Settlement?
The eligibility and payment process under the settlement is quite straightforward.
1. Eligibility
- All customers who held a 360 Savings Account between September 18, 2019, and June 16, 2025, are eligible for a payment.
2. No Claim Form Required
- Customers will automatically receive payment without any application or documentation.
- They can choose to receive the payment electronically.
3. Payment in Two Parts
The total of $425 million will be divided into two parts:
- $300 million – for cash payments
- $125 million—as increased interest rates in the future for customers who keep their accounts open
How much will customers receive?
The payment amount depends on the customer’s account balance and the duration of the account.
Most importantly:
- If a customer closes their 360 Savings Account before October 2nd, they will receive approximately 15% more in payment.
The right to receive payment remains even after closing the account. This option may be beneficial for customers who want immediate compensation for their losses.
If You Do Not Wish to Accept the Settlement
Customers also have the option to opt out of this settlement.
If they do so:
- They will not receive any payment from the settlement.
- They can file their own lawsuit against Capital One.
- But they will have to bear their own legal costs.
This option is for customers who wish to pursue an individual lawsuit against the company and believe they have suffered greater damages than what the settlement offers.
Conclusion
This Capital One settlement is a significant step in banking history. Millions of customers have suffered losses due to low interest rates for years, and now they are likely to receive relief. Payments will begin after the settlement is approved by the court.
If you held a Capital One 360 Savings Account between 2019 and 2025, you may be eligible to receive a share of this $425 million settlement without filing a claim.
It is important to pay attention to the deadlines and payment options to ensure you receive your payment on time and correctly.
FAQs
Q. Who is eligible for the Capital One settlement?
A. Anyone who held a Capital One 360 Savings Account between September 18, 2019, and June 16, 2025 is eligible.
Q. Do I need to file a claim to receive my payment?
A. No. All eligible customers will automatically receive their settlement payment.
Q. How much money can customers expect to receive?
A. Payments vary based on account balance and duration, but customers who close their account by Oct. 2 will receive about 15% more.
Q. When is the deadline to choose a payment method?
A. The deadline to select how you want to receive your payment is Thursday, Oct. 2.
Q. Can I opt out of the settlement?
A. Yes. You can exclude yourself, but you will not receive payment and must handle any legal action against Capital One on your own.