Capital One Prepares To Hand $425,000,000 To Customers After Receiving Court Approval on Massive Settlement
US financial giant Capital One has recently been granted court approval for a settlement that will result in a substantial payout to both current and former customers. The settlement comes as a resolution to a class-action lawsuit filed by depositors who claimed that the bank had deprived them of interest payments.
As per the settlement administrator’s portal, a total of $425 million has been allocated for individuals with Capital One “360 Savings” accounts between September 18th, 2019 and June 16th, 2025. Eligible account holders will receive a portion of the settlement funds. This legal action stems from a lawsuit filed by the Consumer Financial Protection Bureau (CFPB) earlier this year, alleging that Capital One had misled customers by withholding over $2 billion in interest payments.
The CFPB lawsuit accused Capital One of falsely advertising its 360 Savings accounts as offering some of the best interest rates in the country, only to subsequently lower the interest rates as national rates increased. Despite denying these allegations, Capital One has opted to settle the case.
Under the terms of the proposed settlement, $300 million will be utilized for fees and payments to impacted individuals, calculated based on the interest that each account holder would have earned if they had received the rates of the 360 Performance Savings account. Additionally, $125 million will be designated as “additional interest” for those who still hold a 360 Savings account. These customers will receive an interest rate that is at least double the national average for savings deposit accounts until the funds are depleted.
This settlement signifies a significant development in the ongoing legal proceedings against Capital One. The bank’s decision to settle highlights its commitment to resolving the issue and providing restitution to affected customers.
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Once again, Capital One has been granted preliminary approval for a settlement that will compensate customers who were allegedly cheated out of interest payments. This resolution marks a step towards justice for those impacted by the bank’s actions.
