Capital One has agreed to a $425 million settlement in a major class action lawsuit that addresses customer complaints over interest rate disparities between the bank’s legacy 360 Savings accounts and its newer 360 Performance Savings product. The class action centers on Capital One’s alleged failure to notify account holders of a better alternative, resulting in years of lower earnings for affected customers.

Although Capital One denies any wrongdoing, the settlement is intended to reimburse impacted customers and bring closure to years of litigation.

Summary Table: Capital One $425M Class Action

Background: ING Direct Acquisition and Product Evolution

In 2012, Capital One acquired ING Direct USA, inheriting its popular high-yield savings products. These accounts were rebranded as Capital One 360 Savings.

In 2019, the bank launched the 360 Performance Savings account offering an APY of 1.90%, while legacy accounts continued at 1.00%. However, many existing customers were not informed of the newer option, leading to reduced interest earnings.

Legal Claims and Allegations

The lawsuit, filed in the Eastern District of Virginia, alleged:

• Breach of contract
• Deceptive practices under multiple state consumer protection laws
• Breach of implied covenant of good faith and fair dealing

Plaintiffs asserted that Capital One failed to disclose material differences in interest rates and did not offer a conversion path. Judge David Novak dismissed some claims in 2024 but allowed the central allegations to proceed.

Terms of the Settlement

Total Settlement: $425 million

Who Is Eligible?

To qualify for compensation, you must:

• Have held a Capital One 360 Savings account between 2019 and 2025
• Not have opened a 360 Performance Savings account during that period
• Have received an APY of 1.00% while the newer product offered 1.90%

Eligibility is based on internal Capital One records. Claimants may need to confirm account details or respond to verification requests.

How Payouts Will Be Calculated

Settlement compensation is based on:

• Account balance history
• Duration of account ownership
• Whether the account remains active

Payouts may be distributed by:

• Direct deposit for current Capital One customers
• Mailed checks for closed/inactive accounts
• Digital transfers (e.g., PayPal) if available

Disbursement Timeline

Notifications will be sent via mail or email with instructions for claiming benefits. The process may extend into early 2026 depending on court approval and claim volume.

Consumer Takeaways

This case highlights the importance of:

• Proactive financial management
• Regular product comparisons
• Clear, transparent communication by financial institutions

Customers are reminded to:

• Monitor their financial products
• Regularly check APYs on savings accounts
• Stay informed of banking changes

FAQs About Capital One $425M Class Action

Q: Do I need to submit a claim manually?

A: You will be contacted if eligible. No separate filing may be needed unless instructed.

Q: How will I receive my payment?

A: Payments will be sent via direct deposit, check, or digital method depending on your current banking status.

Q: When will I get paid?

A: Payments are expected to begin after the court gives final approval, likely late 2025 or early 2026.

Q: What if I closed my account?

A: You are still eligible. Your check will be mailed to your last known address.

Q: Where can I check updates?

A: Visit the official claims administrator website (to be announced).

Conclusion

The Capital One 360 Savings class action settlement is one of the largest in recent consumer banking history. While the company did not admit to misleading practices, the $425 million payout is a strong acknowledgment of the financial impact on legacy account holders.

Eligible customers should stay alert for updates, review communication from Capital One, and ensure their contact information is up to date to avoid missing their rightful compensation.

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