Judge approves $425M Capital One settlement

A federal judge granted final approval Monday to Capital One Financial‘s revised $425 million class action settlement with customers who alleged the McLean bank deceptively paid lower interest rates on “360 Savings” accounts while offering higher rates on similarly named “360 Performance Savings” accounts.

U.S. District Judge David Novak in Alexandria rejected an earlier proposed settlement on Nov. 6, 2025, writing that it was “neither reasonable nor adequate on substance.” That settlement would have put $300 million toward restitution and $125 million toward raising the interest of those who continued to hold the 360 Savings accounts.

Under the settlement approved Monday, Capital One will pay $425 million to a settlement fund and pay the interest rate for the 360 Performance Savings account to holders of the 360 Savings account going forward.

The settlement will resolve claims that 360 Savings accounts were capped at 0.3% interest rates, while 360 Performance Savings rates hit a high of 4.35% in 2024.

The settlement paves the way for money to be sent to eligible Capital One customers who held a 360 Savings account between Sept. 18, 2019, and June 16, 2025. Each member of the class will receive an amount determined by a number of variables, such as how much interest the customer would have received if enrolled in the 360 Performance Savings product.

Additionally, the judge ordered that the 26 settlement class representatives each receive a service award of $10,000. Lawyers representing the class will be paid $32 million in fees and more than $1.8 million in expenses out of the settlement fund.

If any funds are left after distributions are made, that money will go to Richmond-based nonprofit Feed More, according to the order.

Capital One denies any wrongdoing. Neither Capital One nor attorneys representing the plaintiffs immediately responded to requests for comment.

Multiple parties filed lawsuits against Capital One over its flagship 360 Savings account. In January 2025, during the final days of President Joe Biden’s term, the Consumer Financial Protection Bureau sued Capital One and its holding company, Capital One Financial, alleging that the companies cheated millions of customers out of more than $2 billion in interest payments. However, under the Trump White House, CFPB dropped the lawsuit in February 2025.