AMERICANS could be in line for payouts worth hundreds, and in some cases up to $1,000, as four major banks settle lawsuits tied to consumer complaints.
The settlements cover everything from robocalls and mortgage forbearances to savings account rates and vehicle repossessions.
Americans could pocket payouts worth up to $1,000 (stock)[/caption]
The settlements cover everything from robocalls and mortgage forbearances to savings accounts (stock)[/caption]
Credit One Bank, Capital One, Wells Fargo, and Five Star Bank have all agreed to multimillion-dollar settlements in cases stretching across the country.
Credit One Bank
A $14 million fund has been set aside after allegations that Credit One Bank used automated calls to contact people without their consent.
The class action claims the company broke federal law by blasting out robocalls between 2014 and 2019.
Credit One, based in Paradise, Nevada, issues credit cards often targeted at people with poor or limited credit history.
While the bank has not admitted wrongdoing, it agreed to resolve the lawsuit with a settlement.
Anyone who received a robocall from the company or its affiliates in that time period may be eligible for a payout.
The exact amount depends on the number of claims filed, but some estimates suggest payments could reach up to $1,000.
Consumers with phone records or documentation of the calls may be able to strengthen their claims.
Even those who can’t provide proof may still qualify, though likely for smaller amounts.
Key dates for this settlement have not yet been released.
Capital One
Another case involves Capital One, which has agreed to a $425 million deal tied to its 360 Savings accounts.
The lawsuit accused the bank of failing to raise interest rates on those accounts even while rates increased for its 360 Performance Savings accounts.
Customers alleged Capital One concealed the difference, costing them higher earnings.
The settlement covers anyone who held a 360 Savings account between September 18, 2019, and June 16, 2025.
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.
Payments will vary depending on how much interest account holders would have earned under the higher rate.
In addition to the main payout, $125 million in extra interest will be distributed to people who still maintain their accounts.
Those who close their accounts before October 2, 2025, won’t qualify for the additional interest.
No claim form is needed – eligible customers will automatically receive compensation.
The exclusion and objection deadline is October 2, 2025, with a final hearing set for November 6, 2025.
Wells Fargo
Wells Fargo has agreed to a $185 million settlement over claims it placed mortgages into COVID-era forbearance without borrowers’ consent.
The class covers loans serviced by the bank between March 1, 2020, and December 31, 2021.
Borrowers said the unwanted forbearances damaged their credit reports and delayed refinancing efforts.
Payments will be made automatically from the first $69 million in the fund, with co-borrowers eligible for an extra $83.33.
If money remains, additional payments may be distributed.
Those who suffered further harm, such as lost income or higher refinancing costs, can file supplemental claims.
The exclusion and objection deadline is November 12, 2024, while the final approval hearing is December 10, 2024.
Anyone seeking extra damages must submit a valid claim form by January 10, 2025.
The general claim form deadline for this case is October 10, 2025.
Five Star Bank
Five Star Bank will also pay out after being accused of failing to send proper notices following vehicle repossessions.
The New York– and Pennsylvania-based bank agreed to a $29.5 million settlement covering repossessions that occurred between May 16, 2011, and September 30, 2021.
The lawsuit alleged that notices sent to borrowers did not meet legal requirements in either state.
Class members can receive payments based on what they paid toward their repossessed vehicle loans.
They may also be eligible for credit reporting relief and the elimination of disputed loan deficiencies.
Those who do nothing will still automatically receive benefits.
The exclusion and objection deadline is October 13, 2025.
The final hearing is scheduled for November 4, 2025.
What to Know
Each settlement comes with different rules and timelines, but three of the four carry October deadlines.
Credit One’s payout could stretch as high as $1,000, while Wells Fargo, Capital One, and Five Star are doling out compensation on a case-by-case basis.
Consumers who think they may qualify are urged to act fast to avoid missing out.
