Capital One receives court approval for $425m settlement

Capital One Financial Corporation has received preliminary court approval for a $425 million settlement to resolve a class-action lawsuit concerning interest rate payments on its 360 Savings accounts. The settlement allocates $300 million to compensate past account holders and $125 million to increase interest rates for current customers. This action follows accusations from the Consumer Financial Protection Bureau (CFPB) that Capital One misled customers about offering competitive interest rates, a claim the bank denies.

The lawsuit alleged that Capital One failed to deliver promised interest payments to depositors between September 18, 2019, and June 16, 2025. The CFPB had previously filed a separate lawsuit, alleging over $2 billion in interest payments were improperly withheld, claiming Capital One advertised high rates while maintaining lower actual rates. CFPB Director Rohit Chopra stated, “Banks should not be baiting people with promises they can’t live up to.”

Under the settlement terms, affected account holders will receive payments based on the interest they should have earned, and current 360 Savings account customers will benefit from an increased interest rate—at least twice the national average—until the settlement funds are depleted.

(Source：Crypto News)