If you ever had a 360 Savings account with Capital One, pay close attention because your bank has agreed to pay a 425 million dollar settlement after a class action lawsuit accused it of keeping interest rates artificially low for years. Uh-oh!!!
While Capital One boasted that its accounts were the most profitable in the country, the reality was quite different, they were paying much less than they promised (and yes, at the same time they were offering new products with rates up to 14 times higher, like the 360 Performance Savings!). So now they’ll have to take responsibility for their false expectations, and you might be getting some money.
What happened
Several customers, along with the Consumer Financial Protection Bureau (CFPB), realized something didn’t add up. Apparently, the bank had been withholding billions in profits (that didn’t belong to them, of course).
Obviously, Capital One has not admitted any wrongdoing, but as always happens in these cases, it agreed to pay the fine to settle the case without going to trial, because it could have been much worse. And worse still, the case could have become more public and damaged its image. So, these companies pay, and the matter is “forgotten”.
The investigation estimates that customers lost more than 2 billion dollars in interest that was rightfully theirs.
How the 425 million will be distributed
The money will be divided into two main parts:
- 300 million dollars will go toward direct payments for those who had active 360 Savings accounts between 2019 and 2025.
- 125 million will be used to improve future interest rates for those who still have those accounts open.
In addition, there’s an “extra” for those who closed their account before October 2, 2025. These people will receive an additional 15% of what they are owed.
Who will receive the payment
Anyone who had a Capital One 360 Savings account between September 18, 2019, and June 16, 2025.
There’s no need to fill out any kind of form to receive the compensation, but you do have to verify your payment information to choose where you want your money sent.
They also give you the option to opt out of the settlement (who would want to lose money???) but, of course, those people will not receive any payment.
How to claim the money
The money will arrive by electronic transfer or physical check (you decide how to receive it).
How much money you could receive
It’s still unknown the final amount because it will depend on how much money you had in the account, how long it was active, and how many people join the claim.
But it’s clear that you’ll be paid what you would have earned while the account was open, and that extra 15% if you closed it before October 2.
Payments will begin once the court approves the settlement, which is scheduled for November 6, 2025.
Deniers?
Some state attorneys general, led by Letitia James (New York), say the settlement doesn’t truly compensate for the losses and believe it benefits the bank more than the customers. They also argue that it doesn’t include any guarantees to prevent it from happening again.
If you don’t want to participate…
You can opt out of the settlement before October 2, 2025, and file your own lawsuit against Capital One, but you’ll have to cover the costs yourself.
If you were a customer between 2019 and 2025, check your account, you might receive an automatic compensation… or at least the satisfaction of knowing that this time the bank had to pay you instead of the other way around!!