Capital One has remained at the center of a major class-action lawsuit involving its legacy 360 Savings accounts. The case alleges that customers were kept on significantly lower interest rates while a nearly identical product, the 360 Performance Savings account, offered much higher returns without adequate notice or automatic transition.
While Capital One had previously proposed a $425 million settlement intended to compensate affected customers, the legal process has taken a major turn in recent developments. A federal judge has rejected the proposed agreement, placing payouts and timelines on hold once again.
The Core of the Lawsuit: Lost Interest
The lawsuit claims Capital One misled long-term 360 Savings account holders by failing to adjust their interest rates in line with market changes.
According to the allegations, the bank:
- Launched the 360 Performance Savings account with significantly higher APY rates (at times exceeding 4.3%)
- Kept existing 360 Savings accounts at much lower rates (as low as 0.3% APY)
- Did not clearly notify customers or automatically move them to higher-yield accounts
As a result, customers allegedly lost out on substantial interest earnings over time.
Eligibility for the Class Action
Despite ongoing legal changes, eligibility criteria remain unchanged:
- You must be a current or former holder of a Capital One 360 Savings account
- The account must have been active at any point between September 18, 2019, and June 16, 2026
Good news for consumers: eligible customers are automatically included as Settlement Class Members. No claim form was required under the original agreement.
Settlement Status: Proposed Plan Rejected
On June 6, 2026, a federal judge rejected the proposed $425 million settlement, sending both parties back to negotiations.
Judge’s Concerns
The court found the settlement insufficient, noting that it would compensate affected customers for only a small portion of estimated losses—less than 10% in some calculations.
Original Proposed Fund Breakdown
| Category | Amount |
|---|---|
| Cash Settlement Fund | $300 Million |
| Additional Interest Fund | $125 Million |
| Total | $425 Million |
Payment Timelines and Next Steps
Because the settlement was rejected, the original payout schedule has been delayed.
- Current Status: The case is under renewed negotiation
- If no agreement is reached: The case could proceed to trial around August 2026
Previously, deadlines for opting out or objecting were set for August 2, 2026, and those who closed their accounts earlier were expected to receive a potential bonus increase.
That bonus structure is now also subject to renegotiation.
For now, eligible customers should wait for official updates from the claims administrator regarding any revised settlement terms.
Frequently Asked Questions (FAQs)
Q: Is the Capital One $425 million settlement happening?
Not yet. The proposed settlement was rejected on June 6, 2026, and a new agreement must be negotiated before any payments can move forward.
Q: Do I need to file a claim form?
No. Eligible 360 Savings account holders are automatically included and do not need to submit a claim.
Q: When will payments be made?
The original timeline (late 2026/early 2027) is now delayed. Payments will only occur if a revised settlement is approved by the court.
Q: Why was the lawsuit filed?
The lawsuit alleges that Capital One failed to increase interest rates on older 360 Savings accounts while offering a higher-yield product to new customers without properly informing existing account holders.
