Millions of savers are set for an unexpected windfall as a multi-million-pound settlement against Capital One reaches its final stage.
US District Judge David Novak, on Monday, 20 April 2026, officially approved a revised £315 million ($425 million) class action settlement.
The Capital One 360 Savings lawsuit alleged that the banking giant engaged in bait-and-switch tactics by launching a new 'Performance' product with higher interest rates while leaving existing customers in an 'inferior' account.
While the bank denies any wrongdoing, the court-ordered payout is now a reality. For eligible customers, this is a 'set and forget' victory—no claim forms are required for the vast majority of participants.
The lawsuit claimedCapital One quietly substituted the 360 Savings account, which offered a 1 per cent APY in 2019, with the superior 360 Performance Savings account at 1.9 per cent APY without informing customers.
'Capital One left all existing customers in the inferior 360 Savings account, and never informed them that 360 Performance Savings was a new, different product paying a higher interest rate,' Wolf Popper LLP claimed.
'The lawsuit alleged that Capital One acted deceptively regarding the marketing and payment of interest on its 360 Savings account product,' the law firm explainedin a press release. The 360 Savings account had been advertised as Capital One's 'high interest' option for 6 years, until it was removed from the official website's offerings in 2019.
Judge David Novak of the Eastern District of Virginia finalised the settlement on Monday, superseding a previous settlement proposal of less than £222 million ($300 million) after federal prosecutors objected. Capital One has denied any wrongdoing, and the court has not ruled that the bank acted improperly, according to theIndependent.
The approved settlement also required Capital One to align interest rates across its 360 Savings and 360 Performance Savings accounts going forward. Certain current and former account holders qualify for the windfall without filing a claim, as payments are automatically made to primary account holders.
Customers who preferred to sue Capital One separately were offered an 'opt out' alternative until 30 March. 'This is the only option that allows you to separately sue Capital One at your own expense for the same or similar legal claims released by this settlement,'the company's settlement pagestated. 'However, if you opt out, you will receive no payment from the Settlement Fund.'
Source: International Business Times UK
