Capital One recently agreed to a massive $425 million class action settlement that will benefit millions of customers. This settlement stemmed specifically from a controversy surrounding the bank’s 360 Savings Account, where existing account holders did not receive expected interest while new accounts received significantly higher returns. This case has highlighted important aspects of customer protection and banking accountability in the financial world.
Details of the 360 Savings Account Controversy
From September 18, 2019, to June 16, 2025, the 360 Savings Account’s interest rate remained stable at just 0.3%, while market rates continued to rise. In contrast, the interest rate on the new 360 Performance Savings Account reached 4.3% by 2022. This difference has cost customers an estimated $2 billion in losses, according to the Consumer Financial Protection Bureau (CFPB).
Customers alleged that the bank presented the 360 Savings Account as a high-yield option, while the actual interest rate was significantly lower than the market average. Furthermore, customers were not adequately informed about the performance account’s superior performance. This resulted in long-term financial losses for many customers.
The CFPB concluded its lawsuit in February 2025, but the class action litigation continued. As a result, Capital One decided to settle in the best interests of customers.
Why the Settlement?
The primary reason for the settlement was that the bank was accused of not disclosing true information about its 360 Savings Account to customers and misrepresenting it as a high-yield product. This allegation led to legal action against the bank, which could have led to a lengthy and costly legal process.
Under the settlement, Capital One did not admit to any wrongdoing but attempted to provide justice to customers and demonstrate accountability through a $425 million fund. This amount has been determined to both compensate for past losses and prevent a similar problem in the future.
Who can claim?
The eligibility for the settlement is quite broad. It includes both current and former 360 savings account holders. The aim is to ensure that even customers who closed their accounts years ago can receive their entitlement payments.
| Criteria | Details |
|---|---|
| Account Type | 360 Savings Account |
| Period | September 18, 2019 – June 16, 2025 |
| Status | Both current and former account holders qualify |
This broad eligibility ensures that as many customers as possible can benefit and reinforces the message of banking accountability.
Payments under the settlement
The settlement will be distributed in two main parts so that customers not only receive compensation for past losses but also ensure the security of their accounts in the future:
| Compensation | Explanation |
|---|---|
| Past Earnings | Customers will receive payments reflecting the interest they would have earned if their funds had been in the 360 Performance Account. |
| Future Protection | All active 360 Savings Accounts will now yield at least twice the FDIC national average rate. |
This structure not only compensates for past losses but also reduces future disparities between different savings products.
Settlement Process Timeline
The settlement will be completed under court supervision and sets clear deadlines for customers:
- October 2, 2025: Deadline for filing claims or objections.
- November 6, 2025: Final Court Approval Hearing.
- After Court Approval: Payments are disbursed after the claims process is complete.
Customers must file claims within the deadline; otherwise, they will not be eligible for payment.
Why the Case Is Important
This case is considered extremely important from a consumer protection perspective. It shows that financial institutions can be held accountable if they mislead or harm customers.
Capital One presented the 360 Savings Account as a competitive and profitable option, while the actual interest rates were significantly lower than the market average. The settlement also demonstrates that financial losses can be recovered through a class action lawsuit. Even though regulatory intervention has ended, customers received fair payments as the legal process continues.
What Customers Should Do
Customers should take the following steps to receive their entitled payments:
- Check eligibility: Ensure your account was a 360 Savings Account during the specified period.
- File a claim: File a claim by the deadline of October 2025.
- Pay attention to official notices: Follow instructions and notifications sent by the bank or court.
- Understand the payment calculation: The payment size will be based on the account balance and the duration of the funds.
This agreement will not only compensate customers for past losses but also ensure fair returns on their accounts in the future. Furthermore, it will encourage customers to be vigilant and compare their financial options.
Lessons for the Future
This case makes it clear that customers should always monitor their accounts and products. Banking products have a variety of returns and terms. Such agreements also teach that if customers are receiving insufficient returns from a product, they can use legal and administrative means to demand their entitled payments.
Therefore, all customers should regularly review their 360 Savings Account and other financial products and make appropriate choices as needed to avoid any financial losses in the future.
FAQs
Q. Who is eligible for the Capital One settlement?
A. All current and former holders of the 360 Savings Account from September 18, 2019, to June 16, 2025.
Q. How much is the total settlement worth?
A. The settlement is valued at $425 million.
Q. What does the settlement cover?
A. It covers past lost earnings and ensures future interest rates on active 360 Savings Accounts are at least twice the FDIC national average.
Q. When is the deadline to submit a claim?
A. Claims must be submitted by October 2, 2025.
Q. How will payments be calculated?
A. Payments depend on the account balance and the length of time funds were held in the 360 Savings Account.
