Capital One Settles 360 Savings Account Class Action for $425 Million
Settlement Overview: A Major Resolution for Capital One Clients
A significant settlement has been reached regarding the class action lawsuit aimed at addressing claims related to the interest rates of Capital One's 360 Savings accounts. This potential resolution, pending court approval, involves a hefty $425 million settlement fund aimed at compensating affected customers and resolving allegations against Capital One.
Details of the Class Action Lawsuit
The lawsuit, officially titled In re: Capital One 360 Savings Account Interest Rate Litigation, centers on claims that Capital One did not fairly adjust interest rates for its 360 Savings accounts since the introduction of the 360 Performance Savings account. Plaintiffs allege that since September 2019, when Capital One launched the performance savings product, the interest rate on the 360 Savings account has lagged significantly behind the newer offering, which is marketed to provide higher returns.
According to the allegations, customers holding the 360 Savings accounts were not appropriately informed about these changes and the introduction of a potentially more profitable account option. The plaintiffs contend that this lack of transparency constitutes deceptive marketing practices, which Capital One denies. Despite the denial of allegations, the company opted to settle to avoid protracted litigation.
Compensation Structure of the Settlement
This substantial settlement outlines two key components aimed at benefitting eligible account holders: a cash settlement fund and provisions for increased future interest payments. Specifically, $300 million is earmarked for direct cash payments to customers based on their account balance, while an additional $125 million is allocated for enhanced interest payments for those who keep their 360 Savings accounts active.
Importantly, individuals classified as members of the settlement class do not need to submit claims to benefit from the fund. A payment will automatically be mailed to eligible accountholders unless their portion is less than $5, in which case opting for an electronic payment is encouraged. This automated process aims to ensure smooth distribution of funds and minimize unnecessary claims processing.
Opting Out and Important Dates
Individuals not wishing to accept the terms of the settlement must submit an opt-out request by the designated deadline; otherwise, they forfeit their rights to pursue further legal action against Capital One regarding this matter. Key dates related to the settlement include the deadline for opting out, which is set for October 2, and a court hearing for final approval of the settlement scheduled for November 6.
This timeline is critical for affected customers as it outlines when they can expect to see their claims processed and payments issued. Those interested in contesting the settlement or the proposed attorney fees must provide their objections by the same deadline.
Final Approval Hearing and Future Steps
The outcome of the litigation and this proposed settlement will largely hinge on the hearing to be held by the court. During this hearing, the court will review all objections, the proposed attorney fees of up to 20%, and the settlement terms to ensure fairness to all involved parties. Customers and their legal representatives retain the option to attend the hearing, although attendance is not a requirement for participation in the settlement.
Frequently Asked Questions
How can I know if I am part of the settlement class?
If you held a 360 Savings account at any time between September 18, 2019, and June 16, 2025, you are likely part of the settlement class.
When will I receive my payment?
Payments will be mailed out after the court grants final approval of the settlement, which is expected to occur after the November 6 hearing.
What should I do if I want to opt-out?
You must submit a postmarked opt-out request by October 2, 2025, to avoid being bound by the settlement.
Will there be different payments depending on my account status?
Yes, the amount and timing of payments will vary based on whether your 360 Savings account is open or closed as of June 16, 2025.
How can I get more detailed information about the settlement?
For more information, affected individuals can review the documentation available or may contact Capital One directly.
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