Capital One customers have just days left to secure their share of a massive $425 million settlement tied to a class action lawsuit over its 360 Savings accounts.
The deadline to act is Thursday, Oct. 2, giving customers little time to ensure they don’t miss out on potential compensation.
The lawsuit accused Capital One of unfairly freezing its interest rates for years, even as national rates rose, depriving customers of billions in potential earnings. While the company has denied wrongdoing, it agreed to settle in a case that continues to stir controversy and faces pushback from state attorneys general.
The settlement, which still awaits final court approval, stems from a complaint filed in U.S. federal court in Virginia in 2024. According to documents obtained by USA TODAY, customers alleged that Capital One’s marketing was misleading. Its 360 Savings account was advertised as a “high interest” product with one of the best variable rates in the country, yet rates remained stagnant despite increases nationwide.
The Consumer Financial Protection Bureau (CFPB) launched its own lawsuit earlier this year, calling the bank’s claims “false or misleading.” In a January statement, the CFPB said Capital One deceived customers into believing they would earn significantly more interest than average savings accounts provided. Although the CFPB dropped its case in February, the separate customer lawsuit moved forward, leading to the $425 million settlement agreement.
Capital One’s troubles did not end there. In May, New York Attorney General Letitia James filed another lawsuit, accusing the company of misleading customers about the true nature of its interest rates. She later led a bipartisan coalition of 18 attorneys general in formally opposing the proposed settlement, arguing it “shortchanges Capital One customers who were cheated out of more than $2 billion.” The coalition submitted an amicus brief to the court on Sept. 24, urging judges not to approve what they see as an inadequate deal that ultimately benefits the bank more than its customers.
The settlement covers anyone who held a Capital One 360 Savings account between Sept. 18, 2019, and June 16, 2025. According to the official settlement website, no claim form is required, eligible members will automatically qualify for a payment. Customers may, however, choose how they want to receive funds, either electronically or by mailed check.
The $425 million settlement is split into two parts: a $300 million Cash Settlement Fund for payouts to account holders based on their balances, and $125 million designated to boost future interest payments for current customers. Those who close their accounts by Oct. 2 will actually receive larger payouts, estimated to be about 15% higher than payments to those who keep their accounts open. Importantly, even customers who close their accounts after the deadline remain eligible for the increased payout if they met the earlier cutoff.
Customers also have the option to exclude themselves from the settlement. By opting out, they retain the right to sue Capital One independently, but will not receive compensation from the settlement fund.
The lawsuit underscores how customers may have lost out on over $2 billion in unpaid interest. Critics argue that Capital One kept its 360 Savings account rates artificially low, even creating an alternative account, 360 Performance Savings, that offered rates up to 14 times higher. This practice, they say, intentionally deprived long-term customers of the earnings they were promised.
For now, affected customers should be aware that the Oct. 2 deadline is firm, and the next important date will be Nov. 6, when the court considers final approval of the settlement. Payments will depend on each account’s history, with larger balances generating higher payouts.
As pressure mounts from state leaders to reject the deal, it remains uncertain if the court will demand a renegotiation. But for Capital One customers, the key immediate step is clear: claim eligibility and decide on a payment method before Thursday’s deadline.
