Capital One Financial has reached a $425 million class-action settlement with consumers who alleged they were misled about the terms of the 360 Savings high-yield account. The revised accord received preliminary approval from a federal judge on Monday, following New York Attorney General Letitia James’s announcement. This follows the rejection of an earlier proposal two months ago, and the revised deal provides full restitution of interest shortfalls plus an additional goodwill payment of up to 5% of lost earnings, estimated to total $21 million in extra credits to affected depositors. The settlement covers accounts opened between January 2019 and March 2025, representing approximately 1.8 million customers nationwide.

On Friday evening, President Donald Trump unveiled plans to impose a one-year cap of 10% on credit card annual percentage rates, effective January 20. In response, Capital One shares fell 6.45% by midday trading, pulling the stock near its 52-week low. Investors fear the cap could slash net interest income by as much as 30% over the next twelve months, given the Federal Reserve’s data showing the average credit card APR was just under 21% in November 2025. Market participants also cite potential reductions in credit availability for higher-risk borrowers, which could lower fee income tied to late-payment and revolving balances.

Despite the selloff, several bank analysts view the retreat as a buying opportunity for COF shares, noting the company’s $158 billion market capitalization and a dividend yield above 1%. They highlight Capital One’s diversified revenue streams—including auto and commercial lending, which collectively account for roughly 45% of net interest income—and its robust capital ratios, with a CET1 ratio of 11.9% as of Q3 2025. However, implementation challenges for the proposed cap, along with ongoing regulatory scrutiny over consumer products, suggest near-term volatility could persist before a clearer outcome emerges.