(NEXSTAR) — You have just a few days left to claim your portion of a massive settlement in a class action lawsuit brought against Capital One.
Capital One was previously sued over its savings accounts, with the Consumer Financial Protection Bureau accusing the company of freezing its rate at a low level for several years, despite rising rates nationally, “cheating” customers out of more than $2 billion in lost interest payments as a result. Other lawsuits have been brought over Capital One’s 360 Savings accounts in particular.
Capital One, which has not admitted to wrongdoing, has agreed to pay $425 million to settle the class action suits against it.
To qualify, you need to have had a 360 Savings account — not a 360 Performance Savings account — between Sept. 18, 2019, and June 16, 2025. You may also have received a notice from the settlement managers notifying you of your eligibility.
You do not need to file a claim to receive a payout. However, you’ll need to use the ID and four-digit PIN found on the settlement notice to select your payment option online. The deadline to make your selection is Thursday, Oct. 2.
Settlement administrators note that, if you opt for a paper check, you will not receive one if your payout amount is less than $5. If you opt for an electronic payment, you’ll receive your payout regardless of how much it is.
How much you receive will depend on the life of your account and the amount of interest you would have received.
Part of the $425 million settlement will be dispersed to qualifying account holders, totalling what they “would have earned if their 360 Savings account(s) had paid the interest rate then applicable to the 360 Performance Savings account.” The latter are accounts that did see rising rates, but were allegedly hidden.
A portion of the settlement, $125 million, is earmarked for paying qualifying account holders “additional interest payments.” According to the settlement website, Capital One will “maintain an interest rate on the 360 Savings account of at least two times the national average rate for savings deposit accounts as calculated by the FDIC” to those who still have 360 Savings accounts. Those payments will continue until all of the $125 million has been dispersed.
Payouts will be determined based on the life of the account and how much interest you would have received if you had a 360 Performance Savings account, “multiplied by a to-be-determined value.” Payouts for those who still have an active 360 Savings account will be calculated nearly the same, except without a multiplier.
You will also receive the aforementioned “additional interest payments” if you keep your Capital One 360 Savings account open after Oct. 2. You do not need to file a claim for these payments.
If your account has already closed or been converted to a 360 Performance Savings account — or you do either before Oct. 2 — “you will receive a Class Cash Payment that is currently estimated to be approximately 15% larger,” the settlement site explains.
The final approval hearing for the settlement is scheduled for Nov. 6. Individual payment amounts will vary and have not yet been specified.
The post Deadline to claim part of $425M Capital One settlement nears: How to apply appeared first on KTLA.
