Capital One Bank, USA’s one of the famous credit banks, is facing serious allegations and a class action lawsuit in 2025. Many of their customer’s may receive compensation from the $425 million class action lawsuit who have lost significant bank interest due to the inefficiency of the bank. The settlement amount was announced in May 2025, but it is still undergoing the final approval, which will be passed by the federal judge in Virginia.
Capital One Bank Settlement Update July 2025
This legal battle started when thousands of customers complained about the lack of information on the new launch of a savings account known as the 360 Performance Savings Account. The specialty of this newly launched savings account was that it paid a good and higher interest rate than the older one. Both types of savings account has a similar name, either done purposely by the bank or coincidentally. Although the names may seem to be the same but their interest rate are drastically different.
As per the lawsuit filed against the bank, the new account interest once reached 4.35% at a point, and the users of the old account saw a drop in their interest rate as low as 0.3%. Many customers complained that they were not told about the difference in the interest rates, and some of them did not even have an idea that there was a new type of savings account.
According to the data of the CFPB, the interest rate gap between the savings accounts has affected thousands of customers, as they might have lost a potential $2 billion in interest over the past 7 years. All the complaints and allegations point out the lack of clarity and communication of the Capital One Bank. The bank is not accepting the allegations but has still settled for the case, and as per legal experts, settling seems a smart move now, as it is clearly visible how the bank has withheld the information.
$425 Capital One Settlement July 2025 Update: Overview
| Article on | $425 Capital One Settlement July 2025 Update |
| Country | USA |
| Settlement name | $425M Capital One Class Action Settlement 2025 |
| Eligibility | Existing customers of Capital One who were not informed about the new savings account |
| Total Settlement Amount | $425 million |
| Category | Class Action |
| New Savings account | 360 Performance Savings Account |
| Old Savings account | 360 Savings Account |
| Final approval date | Not disclosed, expected to be announced soon |
| Claim website | Not yet disclosed |
$425M Class Action Settlement of Capital One Bank
Now, as the case has been laid out, the bank has agreed on the settlement amount of $425 million, and customers who were affected and faced a loss due to the lack of knowledge of the new account will be compensated within the total settlement amount. The new customers were only informed of the new account, and those who were existing users of the bank were not aware of the new savings account. It should be the utmost priority of the bank to provide all new updates and new information to all its customers, whether be it old or new.
The interest received by the new savings account is way higher than the old one. The new savings account offers 1.90% APY, which is almost twice that of the older one. Many unaware customers also saw a drop in the interest rate in their old savings account, and when asked the reason for the drop, there was no proper response from the bank.
The case goes back to 2012 when Capital One Bank had newly taken over ING Direct USA. During that time, ING Digst was considered a very good savings account because of the interest it provided. After some time, Credit One rebranded the account and named it the 360 savings account, but used the same procedure and structure as ING Direct. In 2019, it opened a new savings account named 360 Performance Savings Account without informing old users and only providing information to the new ones.
Despite the new accounts being available for all but the lack of awareness among customers led to such a huge loss. Every bank has the responsibility to keep all its customers in the loop on the first hand and secondly be accountable if the users’ queries are about the same.
Filing of the class action lawsuit of Capital One
The lawsuit was initially filed in 2024 wth the primary allegation that the bank failed to inform many of the existing users about the new savings account, which was providing more interest than the older one. And this omission incurred a loss of around $2 billion to those who used the older savings account.
Individual Amount of the Compensation
The settlement amount in this case of Capital One is divided into 2 parts. The split is done to make sure that the amount is being fairly distributed among the affected customers
- The first $300 will be used to compensate for the gap in interest faced by the old, unaware users. This amount is for the compensation of the loss that has been incurred over the past 7 years because the bank didn’t inform the new savings account.
- The remaining $125 is for compensating those who are still maintaining the old savings account. It is for awarding them for their loyalty towards the Capital One Bank with some reimbursement for the losses.
Apparently, the payment will vary from one individual to individual. Some criteria that will be based on are
- The duration of the creation of the savings account
- The status of the account
- And the average balance kept in the account
Eligibility for the settlement amount
- A person should have a 360 savings account since the new account was launched in 2019
- The person had not opened or switched to the new savings account.
- The person has only earned up to 1 % APY on their older savings account in the provided timeline
- The person should have enough proof to verify when they are contacted by a claim administrator.
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