ONLY one day remains for Americans to claim their share of a massive $425 million settlement against Capital One.
If they do not apply by the end of today, they will lose their chance forever.
The deadline for the Capital One deadline is October 2[/caption]
Plaintiffs have argued that the banking giant Capital One did not properly raise interest rates on its 360 Savings accounts.
If this is true, this would have lost money for Capital One customers, and the company allegedly tried to cover up this fact.
Capital One did however raise the interest rates on its 360 Performance Savings accounts in line with economic projections.
This settlement benefits those who had a Capital One 360 savings account between September 18, 2019, and June 16, 2025.
Claimants do not have to submit a form in order to receive payment from this settlement.
Instead, they must update their payment preference on their settlement accounts by the end of October 2.
To update the preference, claimants will need to use their claim ID number and a four digit PIN found on the settlement notice they should already have.
Administrators have noted that those who choose to receive their cash through a mailed check can only do so if they are being paid more than $5 from the settlement.
Those who choose an electronic payment option can do so regardless of the amount being paid.
The money will be automatically paid to the claimant once they have updated their preference.
Capital One has not admitted to any wrongdoing in this case but has agreed to pay out the $425 million to settle the claims against it.
PAY DAY
How much each person is paid is based on how long someone held their 360 Savings account for, and how much interest they should have received if the rates were properly raised.
According to the settlement website, the payments will be divided up based on “would have earned if their 360 Savings account(s) had paid the interest rate then applicable to the 360 Performance Savings account.”
Out of the $425 million settlement fund, $125 million of it is being set aside for “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.
Capital One has committed to invest this money as interest payments for account holders.
The company 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”.
These additional payments will be divided between the claimants until the amount is depleted.
The two times multiplier is yet to be determined because it is based on future data.
But claimants can only receive a share of the $125 million if they keep their Capital One 360 Savings account open after October 2.
The final hearing for the Capital One settlement is set for November 6, 2025.
Plaintiffs have argued that the banking giant Capital One did not properly raise interest rates on its 360 Savings accounts[/caption]
