It's official - Capital One to pay 425 million after class action lawsuit for keeping customers stuck

Capital One has agreed to a $425 million settlement following a class action lawsuit alleging the bank penalized long-term customers by maintaining a significantly lower interest rate (0.3%) on their 360 savings accounts compared to rates offered to new customers (up to 4.3%). The issue stemmed from the introduction of the 360 Performance Savings Account in 2019, which offered substantially higher yields, but Capital One allegedly failed to adequately inform existing customers about this new option.

The settlement is divided into two parts: $300 million to compensate for lost interest for those who held accounts between September 18, 2019, and June 16, 2025, and an additional $125 million to increase interest rates for customers who still have the older accounts. Most eligible customers were automatically identified by Capital One and will receive payments in late 2025 or early 2026, though they should expect official notification from the Settlement Administrator.

Customers affected collectively lost an estimated $2 billion in potential interest. While the $425 million settlement is less than the total losses, it aims to provide restitution and ensure remaining customers receive competitive interest rates, effectively addressing the bank’s practice of prioritizing new customer acquisition over rewarding customer loyalty.

(Source：El Adelantado de Segovia)