The Capital One Bank in the US has agreed to a $425 million lawsuit settlement imposed on the bank in 2024 for the customers who are 360 Savings account holders since September 18, 2019. However, the settlement payouts are currently waiting for the judge’s approval of the final hearing of the court.
As per the notice that was issued by the people of Alexandria and Virginia, the bank has been gathering major attention because of the lawsuit over pulling a bait and switching the nature of their 360 savings account without letting the customers know.
Let’s get to know more about the incident, eligibility criteria, and steps for filing a claim from this blog to help you stay informed:
Capital One Bank Settlement Eligibility Requirements
The new 360 performance account was opened at the rate of 1.9% APY, while the previous version of the same surged upto to a rate of 1% APY. As per the lawsuit, the bank has been alleged to have intentionally deceived the customers by advertising that the 360 savings account has the highest product rate and then later introduced a new, higher-earning account without notifying the customers about the switch.
At the time of the pandemic, the triggering event owned the rates, making the capital one dropping the rates, the older account types drop to 0.3 % while the new 360 Performance Savings earns a rate of up to 0.4 %. When the Federal Reserve began its rate hikes, the coastal bank saw the rate of its 360 Performance savings surge up to 4.3 % whereas the older 360 savings account froze at 3%.
The settlement alleged that Capital One Bank avoided paying the interest for over $2 billion through this fraudulent endeavor.
Capital One Bank Settlement 2025 Overview
| Article On | Capital One Bank Settlement Eligibility |
| Country | U.S.A. (United States of America) |
| Department | Capital One Bank Financial Corporation |
| Settlement Amount | $425 million |
| Beneficiary | Customer of the Capital One Bank |
| Payment Date | Expected to arrive later in 2025 |
| Category | Class Action |
CFPB’s Comment on the Capital One Class Action Lawsuit
CFPB (Consumer Financial Protection Bureau) inquired about the while lawsuit and learned several things that including:
- It gave the wrong impression of its 360 Savings account by removing all such references on its website and putting up the 360 Performance Savings account info instead, with no notification to account holders that the older product was being kept along with the announcement that it was no longer the highest earning savings account available in Capital One.
- It had prohibited employees from actively informing 360 Savings accountholders about the new 360 Performance Savings product.
- While Capital One was advertising the higher-earning product to all of its customers who do not have the older savings account, it excluded the existing 360 Savings account holders from such advertising.
Distribution of $425 Million to the Settlement Class
The payouts of $425 million from Capital One Bank Settlement will be settled in two ways:
- $300 million will be paid to the members of the settlement class. They will be paid the amount of interest that they have earned through the rates of a 360 performance savings account. The amount of payout might also depend on the time that the person had the 360 performance savings account and what rates it had during the time they had the older 360 savings account.
- The $125 million that is remaining would be distributed in the form of payouts to the people who still have the 360 savings account, with their accounts earning double the national average rate as per the FDIC.
Capital One Bank Settlement 2025 Eligibility Requirements
The Capital One Bank is not going to send its payouts to every customer. It will send it to the ones who had been affected by the account switch. Along with it, there are a few terms you need to meet to deem yourself eligible for the settlement benefit:
- The customers who have had an active Capital One account during the specified period. It includes you opting for services like credit cards and various savings accounts.
- The individual should be a citizen of the USTO to deem themselves eligible to receive the benefits.
- Individuals should have the necessary documents that validate their authenticity of being affected when the incident happened, including the fraudulent charges on their accounts and other related issues.
- Both business and personal account holders are eligible to file a claim.
When Will the Payouts Be Released?
The Capital One Bank Settlement is still pending court approval, so there haven’t been any deadlines disclosed so far. The hearing of the court is assumed to happen later this year to finalize the needed details. Once the final approval of the court is made, the payouts will soon to set to roll out, compensating the affected customers who have lost out over the years.
What to do till the $425 million Settlement Payouts Arrive?
Till the final hearing of the Court is done, you need to take care of a few things in mind to stay prepared for a Smoother arrival of the payout, and that includes:
- Make sure to review all your letters and emails that Capital One sends you regarding your eligibility for the settlement.
- Keep a close watch on the official website that is approved by the court for any revisions or deadlines for filing the claims.
- Keep the documentation that you need to prove the authenticity of your 360 saving account during that time.
- If you think you are a qualifier and you haven’t heard anything from the claims administrator, then you should get in touch with them.
Final Thoughts
The payout dates of the settlement lawsuit have not been declared yet, but will soon be disclosed after the final hearing of the court. Till that time, you need to keep a close watch on the original website for any new notifications related to the Settlement. Ensure to file your claims as soon as possible, so that you can book your slot, deeming it to be prepared to receive the benefits whenever they are released in the future.
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