Capital One has been at the center of a major class-action lawsuit concerning its legacy 360 Savings accounts, which allegedly kept customers at excessively low interest rates while offering significantly higher rates on the similar 360 Performance Savings account without proper notification.1
While the bank had tentatively agreed to a $425 million settlement to compensate millions of customers, the situation has recently taken a critical turn: a federal judge has rejected the proposed settlement.2 This decision, made shortly after the November 6, 2025, final approval hearing, means the previously announced payout schedule and amounts are currently on hold.
Here is an updated breakdown of the lawsuit, eligibility, and the current status of the Capital One payment.
The Core of the Lawsuit: Lost Interest
The class-action lawsuit alleged that Capital One misled its long-standing 360 Savings account customers.3 When market interest rates began to rise, the bank:
- Created a new product, the 360 Performance Savings account, with a much higher Annual Percentage Yield (APY) (at times over 4.3% APY).4
- Kept existing 360 Savings customers at a frozen, low rate (as low as 0.3% APY).5
- Failed to clearly notify or automatically switch existing customers to the higher-earning Performance Savings account.6
This practice allegedly caused long-term customers to lose out on billions of dollars in potential interest earnings over several years.7
Eligibility for the Class Action
While the settlement’s payout details are being renegotiated, the eligibility criteria for inclusion in the class remain the same:
- You must be a current or former holder of a Capital One 360 Savings account.8
- The account must have been held at any point between September 18, 2019, and June 16, 2025.9
Good News: If you fall into this group, you are automatically included as a Settlement Class Member.10 No claim form was required for the original settlement.11
Settlement Status: Proposed Plan Rejected
On November 6, 2025, a federal judge rejected the proposed $425 million settlement, ordering both parties to return to the negotiating table.12
The Judge’s Concerns
The rejection was based on the judge’s determination that the settlement amount was insufficient to fairly compensate the affected class members for their alleged losses, stating that the deal recovered less than 10% of the estimated damages for some customers.13
| Original Proposed Fund Breakdown | Amount |
| Cash Settlement Fund | $300 Million (for all class members) |
| Additional Interest Fund | $125 Million (for accounts still open) |
| Total | $425 Million |
Payment Timelines and Next Steps
The rejection means the original payment schedule—which projected payouts starting in late 2025 or early 2026—is now delayed.
- Current Status: The case is in renegotiation. If a new agreement is not reached, the lawsuit could proceed to trial in July 2026.14
- What You Should Have Done: The deadline for opting out of the settlement, objecting, and selecting an electronic payment method was October 2, 2025.15
- Early Account Closure Bonus: Customers who closed their 360 Savings account before the October 2, 2025, deadline were set to receive a payment estimated to be 15% larger than those who kept the account open.16 The fate of this bonus is currently part of the renegotiation.
If you are an eligible customer, your current action should be to wait for official updates from the Claims Administrator regarding the new settlement proposal and timeline.
Frequently Asked Questions (FAQs)
Q: Is the Capital One $425 million settlement definitely happening?
A: Not yet. The proposed $425 million settlement was rejected by a judge on November 6, 2025.17 Capital One and the plaintiffs’ lawyers must negotiate a new agreement before any payments can be distributed.
Q: Do I need to file a claim form to get a payment?
A: No. If you held a 360 Savings account during the eligible period, you are automatically included as a class member and will receive an automatic payment once a settlement is approved.18
Q: When will the money be paid out now?
A: The original payout timeline (late 2025/early 2026) is delayed. Payments will only be issued after a revised settlement is approved by the court. This process could take several months or longer.
Q: What was the reason for the lawsuit?
A: The lawsuit alleged that Capital One failed to raise the interest rates on the old 360 Savings accounts, instead launching a new, higher-rate 360 Performance Savings account without properly informing existing customers, causing them to miss out on interest earnings.19