Capital One Financial has reached a $425 million agreement to resolve a class-action lawsuit brought by depositors who allege they were misled about the benefits of a high-yield 360 Savings account. The settlement covers more than 3 million account holders nationwide and addresses claims that promotional materials and online disclosures overstated the interest rates consumers would actually earn. The original accord was filed in March 2025 and received strong support from plaintiffs’ counsel, who noted that the average depositor lost approximately $140 in expected interest payments over the life of their accounts. Capital One will fund the settlement through existing reserves, and the agreement preserves no admission of wrongdoing while providing cash refunds or account credits to eligible customers.

On Monday, U.S. District Judge Sandra Foster granted preliminary approval to Capital One’s revised $425 million settlement, two months after rejecting an earlier version for failing to adequately inform class members of their rights. New York Attorney General Letitia James praised the revised notice structure, which includes mailed packets, email alerts and a dedicated website with claim-filing instructions in multiple languages. The judge’s order sets a 60-day period for objections and a final fairness hearing in November 2026. If approved, the settlement will mark one of the largest consumer-protection payouts in the banking industry over the past decade.

Capital One’s stock dropped by 6.5% intraday after President Trump announced plans to impose a one-year, 10% cap on credit card interest rates, effective January 20. Investors reacted to concerns that a cap could slash revenue from unpaid balances, which accounted for roughly $4.2 billion in net interest income in the most recent quarter. According to Federal Reserve data, the average U.S. credit card APR stood at just under 21% in November 2025. Industry trade groups warn that a strict cap could restrict credit access for borrowers with lower scores and dampen consumer spending, a key driver of Capital One’s $158 billion market capitalization. Despite the sell-off, some analysts view the dip as a buying opportunity, noting that implementation hurdles may delay or dilute any final rule.