Deadline approaching for selecting payment option in Capital One settlement

Capital One customers have only a few days left to take advantage of the $425 million settlement in a class-action lawsuit against the bank. This settlement aims to address claims that Capital One deceived customers by maintaining low-interest rates on older savings accounts. Specifically, customers who held a 360 Savings account between September 18, 2019, and June 16, 2025, may be eligible for compensation.

The lawsuit originated from allegations made in a 2024 Consumer Financial Protection Bureau suit and a subsequent class action lawsuit. The Consumer Financial Protection Bureau report asserted that Capital One falsely marketed the 360 Savings account as offering high interest rates when, in reality, the interest rates were much lower than what was being provided to customers with newer accounts, such as the 360 Performance Savings account. This deceptive practice reportedly resulted in customers losing out on over $2 billion in potential interest earnings. Although the CFPB dropped its case earlier this year, the class action lawsuit proceeded, ultimately leading to the $425 million settlement.

Despite Capital One’s denial of any wrongdoing, the bank has agreed to pay the settlement amount to resolve the claims from affected customers. Eligible individuals are required to submit a claim form by October 2, 2025, in order to participate in the settlement. However, it is worth noting that claim submission is not mandatory for receiving compensation. Customers can simply use the ID and four-digit PIN provided in their settlement notice to select their preferred payment option online by the deadline.

Customers who opt for a paper check will only receive payment if the amount exceeds $5. On the other hand, those choosing electronic payment will receive compensation regardless of the payout amount. Eligibility for a payment from the settlement is extended to current and former Capital One customers who held a 360 Savings account during the specified period. Furthermore, accounts that were converted to 360 Performance Savings by October 2, 2025, are also considered for settlement purposes.

The $425 million settlement is divided into two parts. The first $300 million will be distributed as one-time, pro rata payments to all eligible 360 Savings account holders. This distribution will be based on the additional interest each individual would have earned if their account had paid the higher rate of the 360 Performance Savings account during the relevant period. Additionally, the remaining $125 million will be directed towards higher interest payments for customers who still have a 360 Savings account. Capital One will be required to pay these account holders a rate that is at least twice the national average savings rate for a specific period, with the $125 million representing the additional interest compared to what they would have earned at the average rate.

As of now, the settlement is pending final court approval, with a hearing scheduled for November 6, 2025. Payment timelines will be communicated on the official settlement website once the approval process is complete.