A federal judge has granted final approval for a $425 million settlement in a lawsuit against Capital One, which accused the bank of misleading savings account holders. The dispute centred 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.
The lawsuit alleged that Capital One acted deceptively regarding the marketing and payment of interest on its 360 Savings account. Law firm Wolf Popper LLP, representing the original account holders, claimed the bank left existing customers in the inferior account without informing them of the new, higher-rate product. Capital One has denied any wrongdoing, and the court has not determined that the bank acted improperly.
Judge David Novak of the Eastern District of Virginia finalised the settlement on Monday, following years of litigation. The revised $425 million sum is larger than a previous proposal that would have provided less than $300 million in restitution, which federal prosecutors had opposed. The settlement also requires Capital One to match interest rates on deposits for both savings accounts moving forward.
Eligible customers are those who held a 360 Savings account at any time from 18 September 2019 to 16 June 2025. Payments are automatic and do not require a claim form. Primary account holders will receive a cheque by mail if their payment is $5 or more; the option for electronic payment closed on 30 March.
