Capital One has agreed to pay $425 million in a massive class action settlement following the 2019 data breach that exposed the sensitive information of more than 100 million customers.
The agreement also resolves claims that the bank misled customers about interest rates on its 360 Savings accounts, keeping them lower than those offered on the newer 360 Performance Savings accounts.
This historic settlement includes direct cash payments and interest adjustments to affected individuals, aiming to compensate customers for financial losses caused by Capital One’s practices.
Why Capital One Faced the Lawsuit
The lawsuit stems from two key issues:
- 2019 Data Breach:
A cloud system vulnerability allowed hackers to access personal details like Social Security numbers, credit reports, and account data. - Misleading Savings Account Marketing:
Capital One promoted its 360 Savings accounts as providing competitive interest rates but kept them artificially low, especially compared to its own 360 Performance Savings product.
According to the Consumer Financial Protection Bureau (CFPB), this led customers to lose over $2 billion in potential interest earnings — prompting the class action and resulting in the $425 million settlement.
Breakdown of the Settlement Terms
| Category | Details |
|---|---|
| Total Settlement Amount | $425 million |
| Cash Payment Fund | $300 million |
| Increased Interest Fund | $125 million |
| Eligibility Period | September 18, 2019 – June 16, 2025 |
| Payment Update Deadline | October 2, 2025 |
| Final Court Approval | November 6, 2025 |
| Payment Distribution | Early 2026 |
| Administrator | U.S. Court & Settlement Administrator |
How the $425 Million Will Be Distributed
$300 Million in Cash Payments
Eligible customers will receive direct payments based on their account balances during the settlement period. These payouts reflect the interest they would have earned if they had been in 360 Performance Savings accounts instead.
$125 Million in Increased Interest
Current 360 Savings account holders will benefit from higher interest payments going forward.
Customers who close their accounts by October 2, 2025, will receive a one-time lump-sum payment, approximately 15% higher than those who keep their accounts active. This is an incentive for account closures before the deadline.
Eligibility Requirements
To be part of the settlement:
- You must have held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025.
- No claim form is required; eligible customers are automatically included.
- Update your payment preferences on the official settlement website by October 2, 2025.
- Payments will be made via direct deposit or mailed checks.
- Those wishing to opt out and pursue their own legal case must do so by the same deadline.
How Much You Can Expect to Receive
Payment amounts will depend on:
- Account balances during the settlement period
- The difference between actual and potential interest earnings
On average, customers who close their accounts by October 2, 2025, will receive about 15% more than those who keep them open.
| Fund Type | Amount | Description |
|---|---|---|
| Cash Settlement Fund | $300 million | Direct cash compensation |
| Interest Adjustment Fund | $125 million | Increased interest for current account holders |
| Total Compensation | $425 million | Combined settlement value |
Important Dates to Remember
| Date | Event |
|---|---|
| October 2, 2025 | Last date to update payment details or opt out |
| November 6, 2025 | Final settlement approval hearing |
| Early 2026 | Expected payout distribution |
Public and Legal Response
While the settlement provides significant financial relief, some state attorneys general — led by New York Attorney General Letitia James — have criticized it for not fully holding Capital One accountable.
A coalition of states has filed an amicus brief, urging further court review before final approval. Despite the criticism, the agreement awaits final judicial confirmation in late 2025.
How to Claim or Verify Your Payment
- Eligible customers will receive official notifications from Capital One or the settlement administrator.
- To confirm your claim:
- Visit the official settlement website (link to be released by Capital One).
- Log in to update payment preferences — direct deposit or mailed check.
- Confirm eligibility before October 2, 2025.
- Avoid unofficial or third-party websites pretending to handle settlements.
Stay Safe from Scams
Be cautious of phishing emails, text messages, or calls claiming to represent the settlement. The Capital One Settlement Administrator will never ask for passwords or financial details via unsolicited communication.
Always rely on Capital One’s official channels to manage or verify your claim.
The Capital One $425 million class action settlement marks one of the largest consumer compensation cases in recent banking history. It not only addresses the 2019 data breach but also ensures customers are repaid for unfairly low savings interest rates.
With payments expected in early 2026, customers should update their preferences before October 2, 2025, and remain alert to scams throughout the process.
FAQs
Who qualifies for the Capital One settlement?
Anyone who had a 360 Savings account between September 18, 2019, and June 16, 2025, is automatically eligible.
When will I receive my payment?
Payments are expected to be distributed in early 2026 after the November 2025 court approval.
How much will I get?
It varies by customer balance and interest rate differences, but average payouts include a 15% bonus for those closing accounts before October 2, 2025.