ONLY three days remain for Capital One bank account holders to get their share of a $425 million interest rates settlement.
The banking giant has been accused of failing to properly raise interest rates on its 360 Savings accounts.
Capital One claimants have until October 2 to update their payment preference on the settlement website[/caption]
Capital One allegedly tried to cover this up, despite having raising interest rates for customers on its 360 Performance Savings accounts.
Despite not admitting to any wrongdoing in this case, Capital One has agreed to pay out the sum to settle the claims against it.
The settlement benefits those who held a Capital One 360 savings account between September 18, 2019, and June 16, 2025.
Claminats may have also received a notice from Capital One to notify them of their elgibility.
But time is running out to claim, and you do not need to complete a form to be paid.
Those who are elgible only have until October 2 to update their preferred payment option on the settlement website.
The money will then be automatically paid to you.
To update your preference, you will need to input your claim ID number and a four digit PIN found on the settlement notice.
Those who do not will not be considered for any form of financial compensation.
Settlement admistrators have said that those who want to be paid via a paper check can only do so if they are being paid more than $5 from the settlement.
However, if you want to be paid electronically, you can do so regardeless of the amount.
HOW MUCH WILL YOU BE PAID?
Payments will be worked out based on how long someone held their account for, and how much interest they should have recieved from Capital One.
According to the settlement, payments will be divvied up to total what claimants “would have earned if their 360 Savings account(s) had paid the interest rate then applicable to the 360 Performance Savings account.”
The settlement also states that a $125 million portion will be paid out as “additional interest payments”.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
Using this $125 million, Capital One will “maintain an interest rate on the 360 Savings account of at least two times the national average rate for savings deposit accounts as calculated by the FDIC”.
The two-times multiplier has yet to be determined.
This is a commitment from Capital One, negotiated as a term in the settlement, to pay account holders a specific amount of interest.
These paymets will continue until the $125 million is depleted.
You will only receive these additional interest payments if you keep your Capital One 360 Savings account open after October 2.
The final hearing for this case is set for November 6.
Despite not admitting to any wrongdoing in this case, Capital One has agreed to pay out the sum to settle the claims against it[/caption]
