A federal judge approved a $425 million settlement in a class action lawsuit accusing Capital One $COF of paying lower interest rates on older savings accounts while offering higher rates on a nearly identical product. Payments are expected to go out on or about July 21 to eligible customers, with no action required on their part.
Joint and co-holders also qualify if their account was open at any time between September 18, 2019, and June 16, 2025. Capital One says it did nothing wrong.
To determine individual payment amounts, the settlement uses the gap between what a customer actually earned and what they would have received at the 360 Performance Savings rate over the same timeframe. Legal fees and the costs of administering the settlement come out of the total fund first, and what is left over is then distributed to those who qualify. Account holders whose share exceeds $5 but who never signed up for electronic delivery will get a paper check sent to them; anyone owed less than $5 receives nothing unless they enrolled in electronic payment before the March 30 cutoff.