US financial giant Capital One just received a court approval for a settlement that will deliver a massive payout to current and former customers.
A judge has granted Capital One preliminary approval to settle a class-action lawsuit filed by depositors who alleged the bank cheated them out of interest payments.
According to the settlement administrator’s portal, $425 million settlement affects people with Capital One “360 Savings” accounts between September 18th, 2019 and June 16th, 2025 are eligible for a portion of the proceeds.
Earlier this year, the Consumer Financial Protection Bureau (CFPB) sued Capital One, alleging it cheated customers out of more than $2 billion in interest payments by misleading them.
In CFPB’s lawsuit, Capital One is accused of promising customers its flagship 360 Savings accounts provided one of the nation’s “best” and “highest” interest rates, only to allegedly freeze the accounts’ interest rate at a low level as interest rates rose across the nation. Said CFPB Director Rohit Chopra at the time,
“Banks should not be baiting people with promises they can’t live up to.”
Capital One denies the allegations, but is agreeing to settle.
Under the terms of the proposed settlement, $300 million will go toward fees and payments to those impacted based on the interest each account holder would have earned if they had been given 360 Performance Savings account rates.
The remaining $125 million will be paid as “additional interest” to those who continue to have a 360 Savings account. These customers will be given an interest rate of at least two times the national average for savings deposit accounts until the funds run out.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Generated Image: Midjourney
