Here’s a breakdown of the $425 million settlement involving Capital One (for its “360 Savings” accounts) — and how you can still claim your share before the deadline. This is not legal advice — just a summary to help you understand what’s going on and what to do.
Table of Contents
$425M Capital One Settlement
| Key Fact | Detail / Statistic |
|---|---|
| Settlement amount | $425 million |
| Eligibility period | Sept 18, 2019 – June 16, 2025 |
| Payment components | ~$300 million one-time cash + ~$125 million additional interest |
| Deadline to act | October 2, 2025 |
| Final court approval hearing | November 6, 2025 (U.S. District Court, Eastern District of VA) |
What the Settlement Is About
On May 16, 2025, Capital One Financial Corporation (COF) agreed to a $425 million settlement to resolve a national class-action lawsuit alleging the bank misled depositors of its “360 Savings” accounts.
The plaintiffs claimed that while Capital One introduced a new product—“360 Performance Savings”—offering higher interest rates, it left existing 360 Savings account holders on significantly lower rates without proper disclosure. According to the lawsuits, the legacy 360 Savings account’s interest rate was frozen at around 0.30 % from late 2020 onward, even as the newer account reached rates above 4 % during the same period.
Capital One denied wrongdoing but agreed to the settlement in order to avoid continued litigation risk, as the bank’s statement characterised the agreement as “reasonable and efficient.”
Who Is Eligible and What Must They Do
Eligibility
Eligible individuals include anyone who held a 360 Savings account at any time between Sept 18 2019 and June 16 2025. This applies to primary, joint or co-account holders. Most eligible customers will receive payments automatically; no formal claim form is required in most cases.
Required Actions
Eligible customers should:
- Check mail and email for notices sent by the settlement administrator.
- Visit the official settlement website CapitalOne360SavingsAccountLitigation.com and enter Claim ID/PIN if provided.
- Choose how they wish to receive payment (electronic transfer or check) and update their address/payment info by October 2, 2025.
- Decide whether to close their 360 Savings account before the deadline (for a larger immediate payout) or keep it open to receive additional interest payments.
How the Payment Structure Works
The settlement divides the $425 million fund into two components:
- Approximately $300 million for one-time cash payments to class members who held legacy accounts.
- Roughly $125 million set aside for “additional interest payments” for account-holders who keep their 360 Savings accounts open after the deadline.
Payment amounts are calculated based on each eligible account’s length of time, balance, and whether the customer closes or retains their account. Persons who close their account by the deadline may receive about 15 % more than those who keep the account open, though they give up the additional interest stream.
Additionally, under the settlement, Capital One must maintain the legacy 360 Savings account’s interest rate at least twice the national average savings rate (calculated by the Federal Deposit Insurance Corporation) for a defined period.
Regulatory and Legal Context
The settlement arises amid heightened regulatory scrutiny of consumer banking practices. In January 2025, the Consumer Financial Protection Bureau (CFPB) filed a separate enforcement action against Capital One, alleging that the bank “cheated millions of consumers out of more than $2 billion in interest payments.”
That case accused the bank of violating the Truth in Savings Act and the CFPA by misrepresenting the 360 Savings account as “one of the nation’s top high-interest savings accounts” while withholding equivalent benefits offered to new customers.
While the CFPB later dropped its case, the states—led by the Letitia James, Attorney General of New York—filed objections to the settlement. A bipartisan group of 18 states argued the agreement should be rejected on grounds that it spared the bank from meaningful behavioural changes and provided too small an average payout to depositors.
The case is filed in the U.S. District Court for the Eastern District of Virginia under In re: Capital One 360 Savings Account Interest Rate Litigation, No. 1:24-md-03111-DJN.
Why This Matters
For consumers, this settlement spotlights how product architecture in banking can create two-tier systems—leaving long-standing customers earning far less than new entrants under the same brand. As banking moves online and rates change rapidly, disclosure and conversion practices become critical.
For Capital One and shareholder interests, the settlement coincides with the bank’s $35.3 billion acquisition of Discover Financial Services, which closed in May 2025. Analysts view the legal and reputational costs as part of the broader risk-management environment for large banking institutions.
Regulators and state attorneys general are increasingly focused on whether banks provide fair treatment to legacy customers as they roll out new products and features. The outcome may influence how banks structure account transitions and communications going forward.
What Customers Should Be Alert For
- Fraud risk: Some scam messages may claim to be from the settlement administrator asking for personal data or payment to receive funds. Legitimate notices will not ask for Social Security numbers, bank passwords, or payments.
- Monitoring accounts: If you choose to keep your 360 Savings account open to receive additional interest payments, monitor your statements for expected changes after the settlement is approved.
- Stay informed: The settlement website will post updates, FAQs, and key documents. Because the states objected to the settlement, final approval is not guaranteed until the hearing in November.
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What’s Next
The final settlement approval hearing is scheduled for November 6, 2025. If approved, disbursement of funds is expected to begin approximately 60 days after the order, subject to any appeals or administrative delays. Following approval, class members will be notified and funds distributed according to the payment plan.
FAQ About $425M Capital One Settlement
Who is eligible for payment?
Anyone who held a Capital One 360 Savings account between Sept 18 2019 and June 16 2025.
Do I need to file a claim?
No formal claim is required for most. However, you should visit the settlement website and update your address/payment method before Oct 2 2025 if you wish.
How much will I receive?
Payment depends on your account duration, balance, and whether you close your account by the deadline. Closing may yield ~15 % more one-time payout but forfeits the additional interest payment stream.
Where can I find official information?
Visit CapitalOne360SavingsAccountLitigation.com or call the official toll-free number listed in your notice.
