Capital One Data Breach Settlement 2025: How to Claim Your Payout and What You May Receive

The settlement of a large class-action lawsuit between Capital One Bank and its customers is now emerging. The lawsuit centered on the bank not making clear to customers the difference in interest rates between the old “360 Savings” account and the new “360 Performance Savings” account. Customers say they lost millions of dollars in interest due to this trickery. In May 2025, Capital One announced a $425 million settlement in this regard, which requires final approval from a judge in the US state of Virginia.

The beginning of the lawsuit and the root of the controversy

When super-banking customers deposited money in “360 Savings,” they were not told about the new “360 Performance Savings” option on the bank’s website or in the branch. The difference was that the new account interest rate reached 4.35%, while the old account was paying just 0.3% interest. The difference in between was kept completely secret from the customers. Customers remained in the same old account until they later discovered they had lost out on a lot of interest. The U.S. Consumer Financial Protection Bureau (CFPB) said in January 2025 that this difference caused customers to lose about $2 billion in interest, which is a seven-year total.

Additional allegations were that the bank gradually began removing references to the old account from its website, and Capital One employees could only refer to the new account if customers asked.

Capital One agreed to a settlement—but did not admit fault.

The debtor bank did not directly admit fault but settled for $425 million. Julie A. Hill, dean of the law department at the University of Wyoming, said:

“You resolve the dispute once and for all… you eliminate both attorney fees and the uncertainty of a jury.”

Ira M. Steinberg, a partner at Greenberg Glusker, said settlements are often a better solution than litigation because they avoid the rigmarole of arguments and limit the cost of litigation.

Where will the $425 million go?

The bank plans to split the amount into two parts:

1. $300 million will go to customers who owe unearned interest on old accounts. The amount will depend on how much the customer carried the balance and for how long.
2. $125 million will go as additional interest (bona fide) to customers who still have money in old accounts. They will now be guaranteed interest at twice the national average rate (the average interest rate was 0.42% as of May 2025).

Thus, each customer will receive different amounts depending on his or her situation and account history. Note that the actual match will not be as impressive as the initial “total loss” claims.

Who are the beneficiaries—and how do they claim?

Eligible individuals are those who held an account with 360 Savings between September 18, 2019 and the date of acceptance of the agreement (May 2025).

How to claim:

1. Eligible individuals will receive a notification via mail or email.
2. Instructions will be provided on how to claim online or through a form.
3. Opt-in/registration required; eligible individuals can claim their share by filling out a claim form.
4. Registration information will be shared through customer records, but the system may not be perfect. Those who recently closed an account or changed addresses may miss this notification.
5. There will also be a website and phone helpline for these rare circumstances where customers can find out if they are eligible.

When will distributions be collected?

Distributions of the $300 million will begin after the claim window closes. Ira Steinberg said this:

“You will see a spate in a couple of months. There is a guess that the payments will certainly be in the next couple of months after the claims are over.”

The $125 million in additional interest guarantee will still continue, and it will be added to the regular interest payments.

New York lawsuit still ongoing

This settlement was just in a Virginia court; a second lawsuit filed by New York Attorney General Letitia James in May 2025 is still ongoing. This case claims that the class-action release does not affect New York laws.

Dean Julie Hill says:

“New York has continued with its filings despite the class action… They still consider this issue to be a big one.”

So if you are in New York, it is possible you may receive some additional payment.

Understanding the reasons behind the long-running lawsuit

1. Interest rate concealment techniques

• The names of the two separate accounts were so similar that customers were likely to be confused. The bank gradually removed the old information from the website and accompanying documents to automatically direct customers to the new account.

2. CFPB’s preliminary report

• The CFPB estimated that damages were approximately $2 billion in January 2025. However, the settlement is estimated to be $425 million, as actual damages and courtroom strength vary.

3. Consumer rights vs. bank image

• The bank’s settlement strategy of scaling down litigation and exiting the class action was a practical one—but it is difficult to improve the bank’s legal standing and trust.

Looking ahead and what users need to do

• Wait for notice: If you opened an account between 2019 and 2025, you will receive information until the account is active and the settlement is finalized.
• File a claim: File a claim by filling out the form on the website or in the mail.
• Track claim status: If the claim date has passed, check the status on the website/phone.
• NOTE ON NEW YORK CASES: If you are a New York resident, the next lawsuit may expand your rights.

Conclusion—Practical Solution or Legal Lease?

Capital One’s settlement is a practical way to avoid a long, risky, and costly round of litigation—one that can benefit both the bank and customers.

However, it is important to note that the amount received may be small compared to the expected damages. Still, those who had to keep accounts for a long time can directly benefit from this settlement.

It is best to continue monitoring the legal process and user rights in this case—especially as the New York case continues to unfold.

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