Capital One has reached a $425 million class-action settlement for customers affected by the 2019 data breach and issues with its 360 Savings Account. This settlement ensures nearly 10 million customers receive automatic compensation starting in early 2026. Understanding eligibility, payment timelines, and preparation steps helps customers claim their funds smoothly.
Table of Contents
Background of the Settlement
The case combines two major issues: a 2019 data breach exposing millions of customers’ personal and financial data, and misleading interest rate practices on the 360 Savings Account. Together, these incidents led to one of the largest consumer compensation cases in U.S. banking history. The settlement includes:
| Fund Type | Amount | Purpose |
|---|---|---|
| Cash Settlement Fund | $300 million | Compensation for lost interest income |
| Interest Adjustment Fund | $125 million | Additional payments for active 360 account holders |
| Total Settlement | $425 million | Combined consumer compensation |
No separate claim form is required. Eligible customers will automatically receive payments once their account information is confirmed.
The 2019 Data Breach
In 2019, Capital One’s cloud servers were breached, exposing sensitive data for over 100 million customers in the U.S. and Canada. Compromised information included Social Security numbers, bank account details, credit applications, and contact information. This breach was classified by the FTC as one of the largest in the banking sector, leaving customers at risk of identity theft and fraud.
360 Savings Account Misrepresentation
Capital One also faced allegations of misleading advertising for the 360 Performance Savings Account. Many customers were not automatically upgraded and earned below-market interest for years, resulting in significant financial losses. The settlement addresses these discrepancies with adjustments for active accounts and bonus payouts for closed accounts.
Who Qualifies and Payment Timeline
Eligible customers must verify their account information before the October 2, 2025 deadline. Payments will be automatic via direct deposit or mailed check. Key points include:
- Held a Capital One 360 Savings Account between September 18, 2019, and June 16, 2025
- Receive official notice via email or postal mail
- Update account details or opt out by October 2, 2025
- Active accounts get interest adjustments; closed accounts may receive an extra 15% payout
- Settlement payments begin early 2026 after final court approval on November 6, 2025
How Payments Are Calculated
Payment amounts will depend on:
- Average account balance during the affected period
- Duration the account earned reduced interest
- Difference between old and corrected interest rates
Active accounts receive adjustments automatically, and closed accounts get the additional 15% bonus. No action is needed for eligible recipients beyond confirming account details.
Why the Settlement Matters
This case sets an important precedent for banking transparency and data protection. Key takeaways include:
- Financial institutions must protect customer data
- Transparent communication about products and interest rates is essential
- Legal consequences for breaches of trust can reach hundreds of millions
Steps Customers Should Take
Eligible customers should:
- Confirm they held a 360 Savings Account during the affected period
- Update bank or contact information before October 2, 2025
- Monitor official communications directly from Capital One
- Avoid phishing links or third-party claim websites
- Check credit reports for potential identity risks
Frequently Asked Questions
- Who qualifies for the Capital One $425M settlement?
Eligible customers held a 360 Savings Account between September 18, 2019, and June 16, 2025. - Do I need to submit a claim form?
No, payments are automatic once account details are confirmed. - When will payments be sent?
Payments start in early 2026 after the final court approval on November 6, 2025. - How are payments calculated?
Amounts are based on average account balance, duration of reduced interest, and differences in interest rates. - Can closed accounts get a bonus?
Yes, accounts closed before October 2, 2025, may receive an extra 15% payout.
