A federal judge has granted final approval of a $425 million settlement in a class-action lawsuit against Capital One, which accused the bank of misleading savings account holders. The dispute centered on how Capital One handled the transition from its 360 Savings account, launched in 2013, to its 360 Performance Savings account, introduced in 2019 with a higher interest rate.
Details of the Settlement
The lawsuit, filed by Wolf Popper LLP on behalf of original savings account holders, alleged that Capital One engaged in deceptive practices regarding the marketing and payment of interest on its 360 Savings account. Judge David Novak of the U.S. District Court for the Eastern District of Virginia finalized the settlement on Monday, concluding a years-long legal battle. The $425 million settlement is a revision of an earlier proposal that would have provided less than $300 million in restitution, according to federal prosecutors who opposed the original terms.
Capital One has denied any wrongdoing, and the court has not determined that the bank acted improperly. Nonetheless, the settlement requires Capital One to match interest rates on deposits for both savings accounts moving forward.
Eligibility and Payment
Impacted Capital One customers are automatically eligible to receive a payment from the settlement. According to the settlement administrator, certain current and former 360 Savings account holders do not need to file a claim form to receive their share. The settlement covers customers who had a 360 Savings account at any time between September 18, 2019, and June 16, 2025.
Affected customers will receive a check in the mail to their last known address if their payment is worth $5 or more. An option for electronic payment was available but closed on March 30. Only the primary account holder on the 360 Savings account will receive the payment.
Background of the Case
Wolf Popper LLP stated that Capital One advertised the 360 Savings account as its "high interest" savings account for six years until the bank removed it from its website and quietly substituted it with the 360 Performance Savings account. In 2019, the 360 Savings account had an annual percentage yield (APY) of 1%, compared to the 360 Performance Savings account's 1.9% APY. "Capital One left all existing customers in the inferior 360 Savings account, and never informed them that 360 Performance Savings was a new, different product paying a higher interest rate," the law firm claimed.
The Independent has reached out to Wolf Popper, Capital One, and the U.S. Attorney's Office for the Eastern District of Virginia for comment.
