A proposed class action settlement totaling $425 million has been announced in the case In re: Capital One 360 Savings Account Interest Rate Litigation, currently pending in the U.S. District Court for the Eastern District of Virginia. The settlement aims to resolve claims that Capital One paid lower interest rates to customers with 360 Savings accounts compared to its newer 360 Performance Savings product.
The legal action affects millions of current and former Capital One account holders. If approved, the settlement would provide $300 million in direct cash compensation and an additional $125 million in future increased interest payments for eligible customers. The case involves allegations of deceptive marketing and interest rate discrepancies dating back to September 2019.
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$425 Million Capital One Interest Rate Settlement
The lawsuit stems from Capital One’s introduction of the 360 Performance Savings account on September 18, 2019, which offered significantly higher interest rates than its predecessor, the 360 Savings account. Plaintiffs claim that Capital One failed to notify existing customers of this change, even though the two products were nearly identical in features.
While the older 360 Savings accounts remained open and fully functional, Capital One ceased offering them to new customers. The bank allegedly continued to pay lower interest rates on these accounts, without informing holders that a superior product was available. According to the lawsuit, this led to substantial financial losses over time.
Capital One, however, denies all allegations and maintains that it did not engage in any wrongdoing or illegal conduct. The settlement, as stated by the bank, is not an admission of liability but a move to resolve the dispute efficiently.
Breakdown of the $425 Million Settlement
If the Court grants final approval, the settlement will be divided into two components. The first includes $300 million to be distributed to affected customers in proportion to their account balances during the class period. No action is required from customers to receive this payment.
The second component allocates $125 million for increased interest payments starting after June 16, 2025, for customers who still maintain a 360 Savings account on that date. These ongoing benefits aim to align interest rates more equitably with those of the newer Performance Savings product.
| Settlement Component | Amount | Description |
|---|---|---|
| Cash Compensation Fund | $300 million | Paid directly to eligible account holders |
| Future Interest Adjustment | $125 million | Applies to accounts open after June 16, 2025 |
Who Is Eligible and What to Do
The settlement class includes all individuals and entities who held a 360 Savings account at any time between September 18, 2019, and June 16, 2025. Those who do nothing will automatically receive a payment, as long as the amount is $5 or more.
For payments under $5, recipients must opt for electronic payment by visiting the settlement website before the October 2, 2025 deadline.
Important Dates:
- Deadline to choose electronic payment: October 2, 2025
- Deadline to opt out or object: October 2, 2025
- Final Court hearing date: November 6, 2025
Opt-Outs, Objections, and Final Approval
Customers who wish to retain their right to sue Capital One must opt out of the settlement by submitting a written request. Those who stay in the class may also object to any part of the agreement, including attorney fees.
A final hearing will take place on November 6, 2025, to determine whether the Court approves the proposed terms, including up to 20% attorney fees from the total settlement fund.
For more information, visit www.CapitalOne360SavingsAccountLitigation.com or call 1-888-832-2704.
