Capital One $425 million class action settlement reached: See if you qualify
According to a notice filed in the United States federal court in Alexandria, Virginia, Capital One customers filed a class action lawsuit against the bank in 2024. Earlier this year, the Consumer Financial Protection Bureau (CFPB) also sued Capital One, alleging the company froze its rate at a low level for years, despite increasing national rates. As a result, customers were cheated out of more than $2 billion in lost interest payments, according to the Bureau.
In a statement, the Bureau said Capital One marketed its 360 Savings account as 'high interest' with a variable rate that was 'one of the nation's best," and that consumers would earn much more interest than the average savings or money market account. The Bureau called these representations "false or otherwise misleading."
The CFPB dropped the lawsuit in February, but Capital One has agreed to pay $425 million in a separate class action lawsuit settlement.
Here's what you need to know about the class action settlement.
Capital One accusations
Capital One advertised its 360 Savings account as its high-interest savings account, Kiplinger, a finance news outlet, reported, adding that it later froze interest rates on that account at 0.3%. At the same time, rates on its newer account called "360 Performance Savings" increased to a peak of 4.3% in 2022 after the Federal Reserve did a rapid series of rate hikes.
Customers of the older savings account, the Capital One 360 savings account, allegedly weren't notified of the new and higher-earning account.
Who qualifies for payment?
Current and former customers who maintained a Capital One 360 Savings account between Sept. 18, 2019, and June 16, 2025, qualify for payments.
How much will customers receive?
Account holders will receive payments totalling what they "would have earned if their 360 Savings account(s) had paid the interest rate then applicable to the 360 Performance Savings account,' according to the settlement.
The remaining payments will go towards customers who still have a 360 savings account. Their accounts will earn an interest rate that is "at least two times the national average rate for savings deposit accounts as calculated by the FDIC," the settlement stated.
The settlement awaits court approval, with a hearing slated for Nov. 6. The deadline to submit a claim or write to the court objecting to the settlement is Oct. 2.
This article originally appeared on USA TODAY: Capital One $425 million class action settlement. Who qualifies?
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