Capital One $425M Class Action Settlement 2026 – Final Approval Hearing Set, Automatic Payments Ahead

Capital One’s long-running interest-rate dispute just lurched toward resolution. A federal judge has granted preliminary approval to a revised $425 million class action settlement tied to the bank’s 360 savings products—an upgrade that could mean bigger checks and automatic payments for millions of customers if the deal clears its final hurdle in spring 2026. No claim forms. No portal logins. If you’re in, you’re in.

What this case is really about

Back in 2019, Capital One rolled out the 360 Performance Savings account—widely marketed, splashy APYs—while keeping legacy 360 Savings accounts open for existing customers. The lawsuit says many legacy customers never got a clear, prominent notice that they could switch—and as rates moved up, that gap mattered. A lot. Plaintiffs argue people on the old account earned ~0.30% at times, while Performance Savings touched north of 4% during the same window, leaving a measurable shortfall.

Capital One denies any wrongdoing and stands by its practices. The bank isn’t admitting liability; it’s seeking peace.

Where the case stands now

The consolidated litigation—In re: Capital One 360 Savings Account Interest Rate Litigation—is pending in the U.S. District Court for the Eastern District of Virginia. A judge granted preliminary approval on January 12, 2026, clearing the revised settlement to move toward a final hearing now calendared for April 20, 2026. Court dockets and scheduling orders like these typically appear on the EDVA court site (official).

If the court signs off at final approval, payments will be automatic based on Capital One’s records. No paperwork from you. No opt-in forms.

What changed in the revised deal

The court previously flagged concerns that the earlier proposal didn’t deliver enough value. Plaintiffs’ counsel returned with a revamped package, now preliminarily approved, that includes:

• $425 million common fund for past interest shortfalls (subject to court approval and deductions for fees/expenses)
• Forward-looking rate relief—aligning legacy 360 Savings yields with 360 Performance Savings for at least two years, reducing future shortfalls for class members who kept the old account

Attorneys for the class say the rate-alignment piece meaningfully increases the settlement’s real-world value, beyond the cash.

Who’s included—and who gets paid

If you held a Capital One 360 Savings account between September 2019 and June 2025, you’re likely within the class definition (subject to final court approval and carve-outs). The settlement administrator will use Capital One’s internal records to determine eligibility and payment amounts. No claims process.

How much will you get? It depends on:

• Your balances in the legacy 360 Savings account
• How long you remained in the lower-yielding product during the class period

Exact numbers will be calculated after the court gives the final nod. Expect notices and detailed FAQs on the settlement website referenced in mailed or emailed class notices.

Key dates, at a glance

Milestone	What it Means	Status
Jan 12, 2026	Preliminary approval granted for revised settlement	Complete
April 20, 2026	Final approval hearing (Eastern District of Virginia)	Scheduled
Post–Final Approval	Automatic distributions based on bank records	Timing to be posted on the settlement site

For official background on interest-bearing accounts and disclosures, see the CFPB’s consumer resources on savings accounts (official: consumerfinance.gov) and general federal oversight via the FDIC (official: fdic.gov/resources/consumers/).

How the money flows

This is a traditional common-fund settlement. After court approval, the fund pays:

• Class member distributions
• Court-approved attorneys’ fees and expenses
• Service awards (if approved) to lead/class representatives
• Administration costs

Any requested fees/awards must be reviewed and approved by the judge. Plaintiffs’ counsel has signaled they will seek attorneys’ fees (a percentage of the fund), litigation expenses, and service awards for representative plaintiffs. The court will decide what’s fair on April 20, 2026.

What you need to do (and what you don’t)

You do not need to file a claim. Payments are automatic if you’re in the class.

You should:

• Watch for official notices via email or mail with a link to the settlement website and administrator contact info
• Update your address if you’ve moved, to ensure delivery (the SSA’s identity tips and the FTC’s guidance on avoiding settlement scams are useful references—official: ssa.gov for account info; ftc.gov for scam alerts)

If you disagree with the settlement, you’ll get instructions in the notice explaining how to opt out or object before the court’s final hearing.

Why this matters beyond Capital One

Tiered savings products are common. So is confusion. As rates surged from 2022 onward, customers sitting in older, lower-yield accounts across the industry left real money on the table. This settlement, if finalized, underscores an evolving expectation: when a bank launches a materially better product, disclosures and migration paths need to be crystal clear. Regulators have been watching disclosures around APYs and account changes—see the Truth in Savings framework overseen at the federal level via the CFPB and prudential regulators (official: consumerfinance.gov/rules-policy/regulations/1030).

FAQs