Capital One is forking out $425 million in a settlement accusing the company of misleading customers out of more than $2 billion — and the deadline to file a claim is this week.
The Consumer Financial Protection Bureau accused Capital One, “one of the most widely recognized brands in banking,” of misleading customers into believing its 360 Savings Account was a “high interest” account — “one of the nation’s” “top,” “best” and highest.
However, the lawsuit claims the banking firm actually froze rates at a very low interest of 0.3 percent.
“The Bureau alleges that these representations were false or otherwise misleading and that from December 2020 to at least August 2024, Capital One has kept the 360 Savings interest rate fixed at 0.30%, a rate that falls far short of the level represented in its marketing,” the Bureau states in a release.
The lawsuit further outlines potentially misleading claims in its lawsuit summary that Capital One launched 360 Performance Savings accounts in 2019 and stopped offering 360 Savings accounts.
The lawsuit alleges that the new accounts being offered had all the same terms and conditions as 360 Savings accounts but offered a higher interest rate and did not convert 350 Savings accounts to 360 Performance Saving accounts.
“Capital One did not convert 360 Savings accounts into 360 Performance Savings accounts and instead took steps to obscure from 360 Savings accountholders the fact that these were different products,” the Bureau said.
In August 2024, the 360 Performance Savings accounts interest rates were 14 times higher, according to the Bureau.
Capital One agreed to a payout of $425 million, with a deadline to file for a claim being Oct. 2, 2025.
However, the U.S. federal court in Alexandria, Virginia, still has to decide whether to approve the settlement payments.
To qualify for a portion of the settlement, you must have been a Capital One customer with a Capital One 360 Savings account between Sept. 18, 2019 through June 16, 2025.
You can file a claim here.
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