Capital One credit card users who managed a particular savings account in the past six years may be eligible to receive payments as part of a $425 million settlement of a class-action lawsuit.

In order to meet eligibility for the settlement payments, current and former Capital One customers must have had the banking giant’s 360 Savings account between Sept. 18, 2019, and June 16, 2025. Customers may access the settlement’s website for more information.

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In May, Capital One reached a settlement with customers who alleged they lost out on substantial interest payments. The Consumer Financial Protection Bureau sued Capital One for the same reason, but the agency later dropped the lawsuit.

CFPB claimed customers were cheated out of more than $2 billion in lost interest payments on the older savings account, which was part of a two-tier system.

The litigation stemmed from Capital One’s misleading marketing of its high-interest savings accounts. The new 360 Performance Savings account replaced the older 360 Savings account, which was already marketed as the best account for earning higher interest.

Around the same time, the bank froze its interest rate at a lower level while the Federal Reserve raised rates nationwide. Customers allegedly weren’t notified of the new account.

Under the settlement, the affected account holders will receive $300 million in payments amounting to what they “would have earned if their 360 Savings account(s) had paid the interest rate then applicable to the 360 Performance Savings account.”

The remaining $125 million will go toward customers who still hold a 360 Savings account. Capital One will ensure their accounts earn interest rates “of at least two times the national average rate for savings deposit accounts as calculated by the FDIC,” according to the settlement.

CREDIT CARD REGULATORS APPROVE CAPITAL ONE AND DISCOVER MERGER

Customers do not need to file a claim. They are automatically eligible to receive the direct payments unless they opt out of the settlement.

The court still needs to approve the settlement. A hearing is scheduled for Nov. 6.