Capital One has reached a $425 million settlement following the 2019 data breach that exposed personal information of more than 100 million customers across the United States. Those affected may soon be eligible to receive compensation, including cash payments or credit monitoring services.
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What Triggered the Capital One Lawsuit?
The lawsuit originated from allegations that Capital One misled customers about the true earning potential of its 360 Savings accounts. While the bank advertised these accounts as offering top-tier interest rates, it allegedly failed to raise those rates even as market rates climbed.
In contrast, Capital One introduced another product — the 360 Performance Savings account — that provided significantly higher interest returns, in some cases up to 14 times more than the older 360 Savings accounts.
This prompted both customer complaints and investigations by the Consumer Financial Protection Bureau (CFPB), which accused Capital One of unfair marketing practices. According to the CFPB, customers collectively lost out on over $2 billion in potential interest earnings due to the misleading information.
The legal actions eventually led to a class action settlement aimed at compensating customers who were financially affected by the discrepancy.
Overview
As part of the final agreement, Capital One will distribute $425 million to impacted customers. This amount will be divided as follows:
| Settlement Component | Purpose | Estimated Amount |
|---|---|---|
| Cash Payments Fund | Compensation for eligible customers based on account balances | $300 million |
| Increased Interest Fund | Higher interest earnings for current 360 Savings account holders | $125 million |
Customers who no longer hold an active 360 Savings account or choose to close it before October 2, 2025, will receive a one-time lump-sum payout that’s approximately 15% higher than what continuing customers will get.
The higher payout acts as an incentive for those who wish to discontinue their accounts and settle their claims fully.
Eligibility Criteria
Individuals who held a Capital One 360 Savings account anytime between September 18, 2019, and June 16, 2025, are automatically eligible for compensation.
Here’s what to know:
- No claim form is needed. Eligible customers will automatically be included.
- Payment preferences must be updated by October 2, 2025, on the official settlement site.
- You can choose to receive payments via direct deposit or paper check.
- Those who wish to opt out and pursue their own legal claim must do so by the same date. Opting out means forfeiting the settlement payment but retaining the right to sue Capital One individually.
Impact and Controversy
The $425 million settlement has drawn mixed reactions. While it represents a significant financial resolution, some state attorneys general argue that it doesn’t go far enough.
A coalition of state officials, led by New York Attorney General Letitia James, has voiced concern that the agreement allows Capital One to avoid greater accountability. They filed an amicus brief urging the court to reconsider approval of the settlement, claiming it favors the bank more than the affected customers.
Despite this opposition, the court is moving forward with review proceedings, with a final approval hearing scheduled for November 6, 2025.
How Much Money Will Each Person Get?
The settlement payout will vary for each claimant depending on their account balance during the period between September 18, 2019, and June 16, 2025.
Customers will receive compensation based on the interest they would have earned had their funds been placed in the higher-yielding 360 Performance Savings accounts.
For account holders who close their accounts before October 2, 2025, the payout will be roughly 15% higher than for those who keep their accounts open.
| Account Status | Estimated Payout Type | Expected Benefit |
|---|---|---|
| Open 360 Savings account | Automatic increased interest payment | Based on missing interest rates |
| Closed account before Oct 2, 2025 | One-time lump-sum payment | 15% higher compensation |
| Opted-out customers | No payment | Eligible for private lawsuit |
The entire $425 million will be distributed between the Cash Settlement Fund ($300M) and the Increased Interest Fund ($125M). Payments are expected to begin once the settlement receives final court approval in November.
Important Deadlines
| Key Event | Date |
|---|---|
| Update payment preference or opt-out deadline | October 2, 2025 |
| Court approval hearing | November 6, 2025 |
| Expected start of payments | After court approval (late 2025) |
FAQs
No, eligible customers will be automatically included and paid once the court approves the settlement.
Payments are expected to begin after the final approval hearing on November 6, 2025.
You can update your payment method on the official website www.capitalonesettlement.com.
