“Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice,” said New York Attorney General Letitia James, highlighting the severity of the situation. The recent $425 million class-action settlement approved by a federal judge on April 20, 2026, marks a turning point for many customers who felt misled about their 360 Savings accounts.
This settlement affects anyone who held a 360 Savings account between September 18, 2019, and June 16, 2025. Eligible customers will receive their payouts automatically on July 27, 2026, provided no appeals are filed. This means millions of individuals will benefit without needing to fill out claim forms.
The lawsuit accused Capital One of misleading its customers regarding the interest rates on their savings accounts. Customers with older accounts received an average annual percentage yield (APY) of just 0.3%, while those with newer accounts enjoyed an APY of 4.35%. Payments will vary based on the interest missed during the specified period.
Key financial details:
- The court allocated $32 million for attorneys’ fees and $1.81 million for expenses.
- Each settlement class representative will receive a service award of $10,000.
- Legal fees up to 15% and administrative costs will be deducted from the settlement amount before distribution.
The court’s approval marks a critical milestone in this long-running dispute. Philip Black, an attorney involved in the case, remarked, “A great result for the class.” This sentiment resonates with many who have felt the impact of these misleading practices.
Going forward, Capital One plans to align the interest rates on its 360 Savings accounts with those on the 360 Performance Savings account. This change aims to ensure that all customers receive fair treatment in terms of interest rates.
The lawsuit began in 2023 and is separate from a previous data breach settlement involving Capital One. The outcome here signifies not just financial compensation but also a step toward greater accountability in banking practices.
The next steps involve finalizing payouts and ensuring that affected customers receive their due compensation as outlined in the agreement.
