Capital One Gains Preliminary Approval for Revised Settlement in Class Action
Capital One received preliminary approval for a revised $425 million settlement, plus increased interest rates, in a class action lawsuit.Summary
Capital One has gained preliminary approval from a federal judge for a revised settlement totaling $425 million, along with increased interest rates for depositors, to resolve a class action lawsuit. The lawsuit alleged that Capital One cheated depositors out of higher interest rates by offering preferential rates to new customers of its 360 Performance Savings accounts while providing lower rates to existing 360 Savings account holders. An earlier proposed settlement was rejected in November as being insufficient, with the judge stating the payout was too small given the strength of the plaintiffs’ claims. Eighteen state attorneys general also opposed the initial settlement, arguing it would shortchange customers. The revised settlement includes the original $425 million payment, plus an additional approximately $530 million in higher interest rates for 360 Savings account depositors. New York Attorney General Letitia James, who led the opposition to the first settlement, praised the new agreement, stating it ensures Capital One customers receive the interest rates originally promised.
(Source：Pymnts)