In a significant move, Capital One has agreed to a $425 million class action settlement, addressing claims related to its 360 Savings accounts. This settlement aims to compensate customers who were affected by the 2019 data breach and allegations of misleading interest rate practices.
Table of Contents
Overview
| Category | Details |
|---|---|
| Total Settlement Amount | $425 million |
| Cash Payment Fund | $300 million |
| Interest Adjustment Fund | $125 million |
| Eligibility Period | September 18, 2019 – June 16, 2025 |
| Deadline to Update Payment Preferences | October 2, 2025 |
| Final Approval Hearing | November 6, 2025 |
| Administering Authority | U.S. District Court & Settlement Administrator |
| Official Website | capitalone360savingsaccountlitigation.com |
Reasons for the Lawsuit
The class action lawsuit against Capital One stemmed from two primary issues:
- 2019 Data Breach: A vulnerability in Capital One’s cloud system compromised the personal data of over 100 million customers, including Social Security numbers, credit reports, and account details.
- Misleading Interest Rates: Capital One was accused of advertising its 360 Savings accounts as offering competitive interest rates, while in reality, the rates were kept artificially low compared to newer offerings like the 360 Performance Savings accounts.
The Consumer Financial Protection Bureau (CFPB) found that these practices led to customers losing over $2 billion in potential interest earnings.
Terms of the Settlement
Cash Payment Fund – $300 Million
Eligible customers will receive direct cash compensation based on the balances they held in their 360 Savings accounts during the settlement period. This payout represents the interest customers should have earned if their funds were in higher-yield 360 Performance Savings accounts.
Interest Adjustment Fund – $125 Million
This portion applies to customers who still maintain active 360 Savings accounts. They will receive increased interest payments to make up for the earlier shortfall. Customers who close their accounts by October 2, 2025, will receive a one-time lump-sum payment, approximately 15% higher than if they keep their accounts open.
Eligibility Criteria
To qualify for the settlement, customers must:
- Have held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025.
- Update their payment preferences via the official settlement website by October 2, 2025.
- Choose to receive payments electronically or via mailed checks.
No separate claim form is required; eligible customers are automatically included.
Expected Payout Amounts
The compensation amount varies depending on each customer’s account balance and interest rate during the eligibility period. The average payout is based on the difference between what customers earned and what they should have earned if their funds had been placed in the 360 Performance Savings accounts.
Customers who close their accounts by the October 2, 2025, deadline will receive around 15% more than those who keep them open.
Timeline and Important Dates
| Date | Event |
|---|---|
| October 2, 2025 | Deadline to update payment preferences or opt out of settlement |
| November 6, 2025 | Final court hearing for settlement approval |
| Early 2026 | Expected timeline for distribution of settlement payments |
Conclusion
While the settlement offers financial relief to affected customers, it has faced criticism from multiple state attorneys general, led by New York Attorney General Letitia James. They argue that the settlement does not go far enough in holding Capital One accountable for misleading its customers. A coalition of state attorneys general has filed an amicus brief, urging the court to review the terms before approval.
