From Yahoo Finance: 2025-05-16 19:47:00

Capital One settles for $425 million in a lawsuit alleging they cheated savings account depositors out of higher interest rates. The settlement covers depositors with 360 Savings accounts since September 2019. Capital One will pay $300 million to cover interest they could have received on higher-yielding accounts. Legal fees will be paid from the settlement.

Depositors claimed Capital One falsely promised high interest rates on 360 Savings accounts while offering better rates to new customers on 360 Performance Savings accounts. The settlement requires a judge’s approval and Capital One did not admit wrongdoing. New York Attorney General Letitia James sued Capital One on behalf of 360 Savings depositors in that state. Capital One denies the claims and plans to defend itself in court.

The U.S. Consumer Financial Protection Bureau filed a similar lawsuit in January but dropped the case in February. Capital One expects to complete its $35.3 billion takeover of Discover Financial Services on May 18. The case is In re Capital One 360 Savings Account Interest Rate Litigation, U.S. District Court, Eastern District of Virginia, No. 24-md-03111.

Read more: Capital One to pay $425 million to settle litigation over savings accounts