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Economic Times
2 days ago
- Business
- Economic Times
Big payout alert from $425 million Capital One settlement: Millions could qualify for cash, are you one of them?
Synopsis Capital One 360 Savings settlement is making headlines after the bank agreed to pay $425 million to customers affected by outdated interest rates. Account holders between September 2019 and June 2025 are eligible, with $300 million going as automatic cash payouts and $125 million allocated as future interest for retained accounts. No claims are needed, but customers must update their information by October 2, 2025, to receive payments. Capital One is set to pay $425 million in one of the largest banking settlements in recent years. The settlement resolves a class-action lawsuit claiming that customers with older 360 Savings accounts were misled about interest rates, missing out on earnings they could have had with newer accounts. Capital One has agreed to a $425 million settlement in a class-action lawsuit concerning its 360 Savings accounts. The lawsuit, filed over claims that customers with older 360 Savings accounts were misled about interest rates, could affect millions of account holders and represents one of the largest banking settlements in recent years. The case stems from Capital One offering different interest rates for its 360 Savings products. Customers with older 360 Savings accounts reportedly did not receive the same rate increases as those opening the newer 360 Performance Savings accounts. According to court filings, these discrepancies meant many long-term customers earned substantially less than they could have, sometimes for years. The lawsuit alleges Capital One failed to clearly communicate rate changes and account benefits. Experts note that while banks frequently adjust rates, they are legally obliged to notify customers transparently, especially when newer accounts are more lucrative. Eligibility is straightforward: Account holders of Capital One 360 Savings between September 18, 2019, and June 16, 2025 are included. of Capital One 360 Savings between are included. Joint account holders are also eligible. are also eligible. Even customers who closed accounts within this period may qualify for a one-time payout, provided they update their information by the October 2, 2025, deadline. No claim forms are necessary for automatic payments, but updating your contact details ensures you don't miss your share. ALSO READ: PPI inflation shock rocks Wall Street and Trump — big Fed rate cut dreams go up in smoke The settlement splits the money into two major components: $300 million — Automatic cash payments to eligible customers. $125 million — Allocated as future interest for account holders who maintain their 360 Savings accounts. Industry analysts say this approach is strategic: it compensates affected users immediately while encouraging them to keep funds with Capital One, mitigating long-term financial impact for the bank. October 2, 2025: Last day to update account details or opt for the one-time payout if planning to close an account. Last day to update account details or opt for the one-time payout if planning to close an account. November 6, 2025: Court's final approval hearing. Court's final approval hearing. Within 60 days post-approval: Payments expected to be processed. Eligible customers should visit the official settlement site at for instructions. For Capital One, this settlement is more than just a payout; it reflects growing scrutiny of transparency in banking practices. Regulators and consumer watchdogs have increasingly pressured banks to align product communication with actual benefits, especially as digital banking grows. For customers, this case highlights the importance of monitoring interest rates and account terms. Even subtle changes can add up over time. Financial advisors recommend regularly reviewing account statements and comparing offers across providers to ensure earnings match advertised rates. Banking analyst Laura Greene notes: 'While $425 million sounds substantial, this is a lesson in the long-term cost of customer trust. Banks risk reputational damage that far outweighs the settlement itself.' From a user perspective, this settlement is a rare opportunity to reclaim lost earnings without litigation hassles. Those who maintain accounts may also benefit from future interest boosts, a practice increasingly seen in settlements to retain customer loyalty. The Capital One 360 Savings settlement is a wake-up call for both banks and customers. If you held an affected account, taking timely action could secure significant compensation. Beyond the payout, this case underlines the need for financial vigilance and the importance of understanding how even minor banking policy changes affect long-term savings Who qualifies for the Capital One 360 Savings payout? Eligible account holders between September 18, 2019, and June 16, 2025, automatically receive payments. How will the Capital One interest rate settlement be distributed? $300 million in cash payouts and $125 million as future interest for maintained accounts.
Yahoo
17-05-2025
- Business
- Yahoo
Capital One to pay $425 million to settle litigation over savings accounts
By Jonathan Stempel (Reuters) -Capital One agreed to pay $425 million to settle nationwide litigation accusing it of cheating savings account depositors out of much higher interest rates by not telling them they could move their money to higher-yielding accounts. A notice describing the preliminary settlement was filed on Friday evening in the Alexandria, Virginia federal court. The accord requires a judge's approval. Depositors said Capital One falsely promised high interest rates on their 360 Savings accounts, while quietly offering much better rates to new customers on the similarly named 360 Performance Savings accounts. The 360 Savings depositors said Capital One froze their rates at 0.3%, and offered rates to 360 Performance Savings depositors that peaked at 4.35% early last year. Capital One, based in McLean, Virginia, did not admit wrongdoing in agreeing to settle, the notice shows. The 360 Performance Savings accounts now yield 3.6%. The U.S. Consumer Financial Protection Bureau filed a similar lawsuit in January, before President Donald Trump took office, but dropped the case in late February as the White House ended most of the agency's enforcement activity. On Wednesday, New York Attorney General Letitia James sued Capital One on behalf of 360 Savings depositors in that state. The bank rejected James' claims and said it would defend itself in court. Capital One expects to complete its $35.3 billion takeover of Discover Financial Services on May 18. The case is In re Capital One 360 Savings Account Interest Rate Litigation, U.S. District Court, Eastern District of Virginia, No. 24-md-03111.
