If you’ve been impacted by Capital One’s interest rates, you could claim compensation now that the company is in the middle of battling a legal suit.
Capital One’s huge $425 million settlement, has been granted approval by a federal judge, after a dispute over how the payment company handled its transition from its savings accounts in 2019.
The Virginia federal judge accepted Capital One’s proposed $425 million settlement, ruling it after previously ruling it ‘inadequate’, per Beasley Allen.
U.S. District Judge David J. Novak confirmed the amount - which is to compensate between the 4 to 5 million class members impacted.
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The proposal for the new settlement came in just last month, and while Capital One has denied any wrongdoing, customers impacted by the switch over, are automatically eligible to receive a payment out of the settlement amount.
According to Wolf Popper LLP, the firm representing original account holders, the bank’s 360 Savings account, which was introduced in 2013, was switched out to its 360 Performance Savings, just six years later.
However, its marketing and handling has come under question and ultimately been dubbed as deceptive toward its customers.
The settlement agreement this year means that if you’re a current or former 360 Savings account holder who held an account from September 18, 2019, to June 16, 2025, you can claim compensation without having to file a form, as reported by the news company, the Independent.
All you need to do is contact the settlement administrator, and you should then be given your cut of the settlement by mail if the amount is more than $5.
However, the money can only be given to the primary account holder, so make sure you’re the owner of the account, or the primary holder is the person applying.
“The lawsuit alleged that Capital One acted deceptively regarding the marketing and payment of interest on its 360 Savings account product,” Wolf Popper LLP wrote in its Wednesday (April 22) press release.
According to the law firm, the 360 Savings account was advertised as its ‘high interest’ account, until it was removed from the bank’s website, and substituted with the 360 Performance Savings account – at an even higher interest rate.
As part of the settlement, Capital One must now match interest rates on deposits for the two savings accounts.
“Capital One left all existing customers in the inferior 360 Savings account, and never informed them that 360 Performance Savings was a new, different product paying a higher interest rate,” the law firm wrote.
In 2019, the 360 Savings account’s annual percentage yield was 1 per cent, while 360 Performance Savings account came in with a 1.9 per cent APY.