#United States #Class Action #Alexandria #Capital One #Savings Account

Overview of Capital One's $425 Million Settlement

In a move set to resolve longstanding disputes, Capital One Financial Corp. has proposed a $425 million settlement following a class-action lawsuit concerning interest rates tied to its 360 Savings account product. This legal battle, formally known as In re Capital One 360 Savings Account Interest Rate Litigation, centers around allegations that Capital One unfairly marketed its 360 Savings account while failing to adequately raise interest rates in line with its competitor product, the 360 Performance Savings account.

Background of the Lawsuit

Launched in early 2013, Capital One's 360 Savings accounts were designed to offer competitive interest rates to customers looking for high-yield online savings options. However, a significant change occurred in September 2019 when Capital One introduced its 360 Performance Savings account, which offered a higher interest rate than that available for existing 360 Savings accounts, although their features were ostensibly similar.

The plaintiffs allege that while promoting the 360 Savings account, Capital One misled customers by concealing information about the higher rate offerings of the new Performance account, thereby committing to a deceptive marketing practice. The lawsuit claims that since the introduction of the new account, Capital One had not adjusted the interest rates on the older 360 Savings account to match the new product.

Settlement Details

If the settlement is approved by the court, it would see approximately $300 million distributed among all 360 Savings accountholders based on their account balances, along with an additional $125 million set aside for future interest payments to these customers. Notably, affected accountholders do not need to file a claim to receive their share; checks will automatically be mailed to eligible customers, provided their payout exceeds $5. If they prefer, customers can choose to receive electronic payments regardless of the amount.

Settlement Class Members are encouraged to opt for electronic payments by visiting a designated website before the October 2, 2025 deadline. Those who wish to opt out of the settlement must submit a formal request by the same date; failure to do so would result in relinquishing any right to pursue individual claims against Capital One regarding this matter.

Key Dates and Actions

A final approval hearing has been set for November 6, 2025, where the court will review the settlement terms and any objections raised by settlement class members or other concerned parties. At the hearing, the Plaintiffs’ Counsel is also expected to request up to 20% of the settlement amount for legal fees, alongside the allocation for service awards to class representatives.

Changes for account holders include a definite transition in interest rates, with the prospective benefits contingent on whether their 360 Savings accounts remained active as of June 16, 2025. It's crucial for accountholders to monitor mailing addresses or electronic updates to ensure they receive their parts of the settlement.

Conclusion

This proposed settlement marks a significant step in providing relief to Capital One's customers who feel they have been wronged regarding the management of interest rates on savings accounts. While Capital One denies any wrongdoing, the financial compensation set forth in this agreement aims to address customer grievances and restore trust in the banking institution's practices. For more information on this settlement and any required actions, visit Capital One 360 Savings Account Litigation.