Millions of Capital One users are set to receive a payout after a federal judge ordered the bank to pay a $425 million settlement, after it was accused of misleading its customers into using savings accounts with lower interest rates.
The settlement has finally been given the green light, after a two-year dispute over allegedly not fairly compensating account holders using two of their savings accounts.
Capital One created the 360 Savings account in 2013, but launched and transitioned to the 360 Performance Savings account in 2019 - an account with a much higher interest rate, which was never made fully clear to customers.
Users were left unsure about which account they held, causing them to lose out on potentially millions of dollars they could have made in interest, legal documents state.
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According to the lawsuit, the newer 360 Performance savings account was launched with a 1.9 percent interest rate, not far from the original 360 Savings account which stood at one percent.
But the rates plummeted soon after to 0.3 percent, while the newer savings account jumped to 4.35 percent, the suit states.
Judge David Novak, who serves the Eastern District of Virginia, finalized the settlement, accusing Capital One of 'deceiving' customers who didn't know they could earn much more interest simply by switching to its newer account.
How can current and former customers claim their share of the $425 million Capital One settlement?
Court documents state that around three-fourths of affected customers are still users of the lower-paying account, but the new settlement deal demands Capital One to match the interest rates on both accounts.
Customers who held a Capital One 260 Savings account between September 18, 2019, and June 16, 2025, are eligible for payouts.
The payout amount will vary depending on how long the account was held for, how much money was in the account, and ultimately how many people are eligible for a slice of the multi-million dollar settlement.
And eligible customers (including former customers) will start to receive their payments in as little as the next month or two - without taking any action.
Users will receive a check in the mail, which will be posted to their last known address - an important to check to make if you think you might be owed some money.
There was an option to receive an electronic payment, but the deadline (March 30) has now passed.
The law firm representing the 360 Savings account holders, Wolf Popper LLP, said in a press release on Wednesday (April 22): "The lawsuit alleged that Capital One acted deceptively regarding the marketing and payment of interest on its 360 Savings account product."
UNILAD have reached out to Capital One for comment.
Mia Williams