Capital One has agreed to a $425 million class-action settlement following the infamous 2019 data breach that exposed the personal information of over 100 million customers. The settlement also addresses claims that the bank misled customers about the interest rates on its 360 Savings accounts, keeping them lower than the newer 360 Performance Savings accounts. Affected customers now have the opportunity to claim payouts in 2025, either through direct cash payments or adjusted interest payments.
Settlement Overview
The $425 million settlement is divided into two main components:
- $300 million in cash payments to compensate for lost interest on 360 Savings accounts.
- $125 million in increased interest payments for customers who continue to maintain active accounts.
| Category | Details |
|---|---|
| Settlement Amount | $425 million |
| Cash Payment Fund | $300 million |
| Increased Interest Fund | $125 million |
| Eligibility Period | Sept 18, 2019 – June 16, 2025 |
| Deadline to Update Payment Preferences / Opt Out | October 2, 2025 |
| Final Court Approval Hearing | November 6, 2025 |
| Administering Authority | U.S. Court & Settlement Administrator |
| Official Website | To be announced via Capital One notifications |
Why Capital One Was Sued
The lawsuit stems from two major issues:
- 2019 Data Breach – A vulnerability in Capital One’s cloud system exposed sensitive customer data, including Social Security numbers, credit reports, and account details.
- Misleading Savings Account Practices – Capital One allegedly advertised its 360 Savings accounts as offering competitive interest rates, but kept them lower than competitors and its own 360 Performance Savings accounts.
According to the Consumer Financial Protection Bureau (CFPB), these practices cost customers over $2 billion in potential interest earnings, prompting this historic settlement.
Eligibility Criteria
Customers must meet the following requirements to receive settlement payments:
- Must have held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025.
- Eligible customers are automatically included; no separate claim form is required.
- Payment preferences must be updated on the official settlement website by October 2, 2025.
- Payments can be received via direct deposit or mailed check.
- Customers who wish to opt out of the settlement to pursue independent legal action must do so by October 2, 2025.
How Payments Will Work
- Cash Payments – Direct payouts will be calculated based on balances held in 360 Savings accounts during the eligibility period.
- Increased Interest Payments – Customers who maintain active accounts will receive additional interest to make up for earlier shortfalls.
- Lump-Sum Bonus – Customers who close their accounts by the October 2 deadline will receive approximately 15% more than if they keep their accounts open.
The exact payout will depend on each customer’s account balance and the difference between actual earnings and what they would have received in a 360 Performance Savings account.
Important Dates to Remember
| Date | Event |
|---|---|
| October 2, 2025 | Deadline to update payment preferences or opt out |
| November 6, 2025 | Final court hearing for settlement approval |
| Early 2026 | Expected timeline for payment distribution |
How to Claim or Check Your Payment
Eligible customers will receive notifications from Capital One or the settlement administrator. To manage your payment:
- Visit the official settlement website (link provided by Capital One).
- Log in and update payment preferences (direct deposit or check).
- Verify your eligibility before October 2, 2025.
Avoid third-party sites or unsolicited messages claiming to handle the settlement, as these could be scams.
Protecting Yourself From Scams
The settlement administrator will never ask for passwords or banking details via email or text. Always use official Capital One channels to confirm information and avoid identity theft.
Frequently Asked Questions
Q1. What is this settlement about?
It compensates customers affected by the 2019 data breach and misleading interest rate practices.
Q2. Do I need to file a claim?
No. Eligible customers are automatically included but must update payment preferences by October 2, 2025.
Q3. Can I still qualify if I closed my account?
Yes. Closing your account by the deadline will result in a 15% higher lump-sum payment.
Q4. What happens if I miss the deadline?
Missing the October 2 deadline may make you ineligible. Contact the settlement administrator for assistance.
Q5. Is this payment taxable?
Yes, settlement payments are considered taxable income. Consult a tax professional for guidance.
Q6. When will payments be received?
Payments are expected to begin after the November 6, 2025 court approval, likely in early 2026.
Bottom Line
The Capital One $425 Million Settlement represents a major effort to compensate millions of customers affected by past errors. With both direct cash payments and interest adjustments, this settlement provides a meaningful financial remedy.
Customers should update their payment information and remain vigilant for official notifications to ensure they receive the compensation they are entitled to before October 2, 2025.
