Customers who have had 360 Savings accounts since September 18, 2019, will get $425 million from Capital One Bank, according to news. This comes after the bank was accused of withholding important information regarding lower interest rates in a class-action lawsuit and they kept it a secret from their existing customers.
After several customers sued Capital One, the settlement was approved by a federal court in Alexandria, Virginia. According to the lawsuit, the bank failed to provide account holders with competitive interest rates and failed to notify them when better alternatives became available.
Capital One created the 360 Performance Savings account, a new product with higher interest rates, rather than changing the rates on the 360 Savings accounts that were already in place. The Consumer Financial Protection Bureau (CFPB) claims that Capital One saved more than $2 billion by continuing to use this two-tier structure and delaying client updates.
Capital One Bank $425 Million Settlement 2025
A lawsuit claiming that Capital One bank defrauded customers of savings accounts has been settled for $425 million. According to news, a notice detailing the initial settlement was filed in a U.S. federal court in Alexandria, Virginia. As the banking giant completes its merger with Discover, the proposed settlement matches with similar legal action taken by New York State against Capital One.
According to a lawsuit filed by customers, Capital One falsely promising high interest rates on 360 Savings accounts while providing new customers with significantly higher rates on these accounts. $425 Million Capital One Bank Settlement 2025 Latest Update reported that as part of the settlement, Capital One will pay $300 million to 360 Savings customers for interest that they may have received with 360 Performance Savings accounts. And yes the bank will pay customers who still have 360 Savings accounts interest of USD 125 million.
Details of Lawsuit Filed on Capital One Bank
Customers filed a lawsuit against Capital One, alleging that the company had falsely promised high interest rates on 360 Savings accounts while providing new clients with higher rates on 360 Performance Savings accounts. The 360 Savings customers claim that Capital One kept their rates at 0.3% while offering 360 Performance Savings customers rates that reached a high of 4.35% at the start of the previous year.
As of today, 3.6% is the yield on the higher-yielding account. Capital One will pay $300 million to 360 Savings customers for interest they may have been eligible to receive on 360 Performance Savings accounts as part of the settlement. If a depositor still has 360 Savings accounts, the bank will pay them an extra $125 million in interest. Those who have deposited money into a 360 Savings account since 18-09-2019, is covered by the settlement and legal fees will be paid by the settlement.
Court Proceedings and Ruling
Capital One’s move to dismiss the case was reviewed by Judge David Novak in November 2024. The core consumer protection claims moved on to settlement negotiations, but some claims including allegations to unjust enrichment and the Ohio Deceptive Trade Practices Act were rejected. After years of ongoing case, a joint settlement was filed in the Eastern District of Virginia on 16 May 2025.
Settlement Breakdown
There are two types of compensation in the $425 million settlement:
| Compensation Type | Amount | Purpose |
|---|---|---|
| Interest Compensation | $300 million | Reimburse lost income from rate difference |
| Loyalty Payment | USD 125 million | Compensate customers who maintained accounts |
| Total Settlement | $425 million | Total compensation package |
Eligibility Requirements
In order to be eligible for settlement payments, clients need to fulfill $425 Million Capital One Bank Settlement 2025 Eligibility Requirements:
- You had a Capital One 360 Savings account after 2019;
- During the impacted period, no transfers were made to 360 Performance Savings.
- While performance accounts provided 1.90% APY, accounts earned 1.00% or less.
- You can show proof of account ownership, if it is requested.
$425 Million Capital One Bank Settlement 2025 Timeline
| Date | Milestone |
|---|---|
| 16 May 2025 | Joint settlement filing |
| Late this year | Court approval hearing |
| Next year | Starting of Payment distribution |
| At present | Claims processing |
How to get your money?
- You could qualify for a payment if you have had a Capital One 360 Savings account from September 2019.
- Visit the official settlement website; after the court has granted final approval, claim forms will be accessible.
- A notification will be sent to you by post or email if you are eligible.
- The process is easy to follow and may be completed without a lawyer.
Settlement Approval Process
Final approval from the court is required for the $425 Million Capital One Bank Settlement 2025 Payment Date. The fairness and affordability of the settlement conditions for impacted customers will be decided in a hearing in late 2025. Depending on the number of qualified clients and verification needs, the claims processing time might be several months if accepted.
Long-Term consequences of this settlement
This settlement is one of the largest consumer banking settlements in recent years and it shows the economic effects that arise when company’s sell superior products to new customers while failing to maintain transparency with current ones. Customers are reminded by the case to periodically review their financial products and actively seek out newer options that may better suit their requirements.
Although Capital One argues that it operated in accordance with the law, the substantial settlement shows the impact on impacted consumers who lost a considerable amount of money over a number of years as a result of the interest rate difference.
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