A US federal judge approved a $425 million settlement in a lawsuit against Capital One, bringing an end to a dispute over how the bank handled its savings accounts and interest rates.
The case focused on the bank’s transition from its 360 Savings account to the newer 360 Performance Savings account. Customers claimed they were not properly informed that the newer product offered significantly higher returns.
Details of case
The lawsuit said that Capital One misled customers by continuing to promote its 360 Savings account as a “high interest” option even after it launched a better-paying alternative in 2019. The newer 360 Performance Savings account offered an annual percentage yield of 1.9 percent, compared to just 1 percent on the older account at the time, reported The Independent.
Law firm Wolf Popper LLP, which represented customers, said the bank “acted deceptively regarding the marketing and payment of interest on its 360 Savings account product.” The firm also claimed the bank quietly removed the older account from its website and replaced it with the higher-yield option without clearly informing existing users.
“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 said.
Judge David Novak of the Eastern District of Virginia granted final approval to the settlement earlier this week. The revised settlement amount of $425 million is higher than an earlier proposal that was valued at less than $300 million.
Who will get the money and how?
The settlement covers customers who held a 360 Savings account between September 18, 2019, and June 16, 2025. Eligible customers do not need to file a claim. Payments will be sent automatically.
According to the settlement administrator, customers will receive checks at their last known address if the payout is $5 or more. Only the primary account holder will receive the payment. Some customers had the option to choose electronic payments, but that window closed on March 30.
The settlement also requires Capital One to ensure that interest rates on both savings products are matched going forward, addressing one of the key complaints in the lawsuit, reported The Independent.
The bank has denied any wrongdoing in the case. The court has not made any finding that the company acted improperly. The settlement allows both sides to resolve the dispute without further litigation.
“This settlement delivers meaningful relief to millions of account holders,” Wolf Popper LLP said in its statement announcing the final approval.