Federal Judge Finalizes $425 Million Payout for Capital One 360 Affected Customers

A federal judge has approved a $425 million payout for Capital One 360 customers. Customers will receive settlement checks as a result of a lawsuit filed against the company alleging it misled customers.

Millions of current and former Capital One 360 customers are in line to receive larger payments as part of a revised settlement of a lawsuit against Capital One 360, which a federal judge approved on April 20th. The decision from Judge David Novak of the Eastern District of Virginia finalized a lawsuit that played out for nearly two years. Novak had earlier rejected an initial deal in November 2025, saying the payout didn’t fairly compensate account holders and also accused the bank of continuing to deceive depositors.

The settlement resolves a lawsuit filed against Capital One 360 for creating two similarly named savings accounts, 360 Savings and 360 Performance Savings, that paid substantially different interest rates, leaving customers uncertain about which account they held. Plaintiffs said the resulting confusion caused customers to lose millions in potential interest.

Although the $425 million settlement amount remains the same, the agreement awards more restitution to affected customers. It may also lead to higher interest rates for existing account holders.

The agreement allocates the full $425 million to compensate account holders for lost interest. In addition, it calls for Capital One to raise the interest rate on its 360 savings accounts to match the yield on its 360 Performance Savings account.

The previously rejected agreement called for Capital One to pay $300 million in restitution and set aside $125 million to raise interest rates for customers who still hold the legacy 360 Savings account.

While rejecting the previous settlement, the court expressed concern that many 360 savings account holders remained unaware that they were receiving far lower interest payments than they could be if they simply switched accounts. The amendment agreement essentially protects those savers by raising their interest rates without requiring them to move their money.

Attorney Generals from multiple states objected to the first deal, including New York Attorney General Letitia James, who brought her own lawsuit on behalf of her state’s customers. James and other involved attorneys general agreed to drop their lawsuits as part of the final settlement.