Aug 25 (edited) • General discussion
Capital One is being Sued
Here’s the latest on legal actions involving Capital One, along with guidance on how to respond or file a related claim:
1. Lawsuits Against Capital One
A.
New York Attorney General Lawsuit
On May 14, 2025, New York Attorney General Letitia James filed a lawsuit in Manhattan federal court against Capital One, alleging deceptive practices related to its “360 Savings” accounts. The complaint claims that although the account was promoted as “high interest,” Capital One kept rates frozen at just 0.30% even as national rates rose. Meanwhile, they launched the “360 Performance Savings” account with rates up to 4.35%—but failed to inform existing 360 Savings account holders, allegedly instructing staff not to volunteer the information. The AG is seeking civil penalties and restitution under New York’s consumer protection laws.
B.
CFPB Enforcement Lawsuit
On January 14, 2025, the Consumer Financial Protection Bureau (CFPB) sued Capital One, accusing them of misleading consumers and avoiding paying billions in interest by obscuring the difference between the 360 Savings and the higher-yield 360 Performance Savings accounts. However, this suit was dropped in February 2025 following a change in CFPB leadership.
C.
Trump Organization Lawsuit
In March 2025, the Trump Organization sued Capital One in Florida, alleging that the bank closed hundreds of Trump-associated accounts due to alleged political bias, framing the action as “de-banking” based on ideological grounds. Capital One denied the claims, stating no accounts are closed for political reasons. The suit seeks punitive damages, attorney’s fees, and a jury trial.
D.
Class Action Settlement – 360 Savings Interest Litigation
Capital One agreed to a significant $425 million class action settlement in the case titled In re: Capital One 360 Savings Account Interest Rate Litigation, filed in the U.S. District Court for the Eastern District of Virginia. The lawsuit accuses Capital One of failing to raise interest rates on the 360 Savings account while launching the higher-yield 360 Performance Savings account without notifying existing customers.
Key details:
- Class Period: September 18, 2019 – June 16, 2025
- Current Status: Settlement reached, pending court approval.
- Estimated Settlement: $425 million total fund.
- Claim Filing: No claim form required. All eligible class members will be paid automatically.
- Deadlines: Payment method selection / address update – by October 2, 2025. Opt-out or object – by October 2, 2025. Final Approval Hearing – set for November 6, 2025.
- Benefit Options: If you close your 360 Savings account by October 2, 2025, you’ll receive an estimated ~15% larger cash payment. If you keep the account open, you’ll receive a smaller cash payment plus additional interest in your account.
2. Steps & Procedures to File or Respond
A.
If You’re a Class Member (360 Savings Settlement)
- No action required to receive payment.
- To select electronic payment or update your mailing address, do so by October 2, 2025 using the settlement website or contact the administrator.
- To opt out (if you wish to sue separately for yourself), request exclusion by October 2, 2025.
- You may also file an objection to the settlement by that date.
- If objecting, note the final approval hearing is on November 6, 2025, should you wish to voice concerns in court.
B.
If You’re Being Sued by Capital One (individual debt)
- Review the documents carefully—usually a Complaint and Summons.
- Respond promptly—typically within 20–30 days depending on state rules. Failing to respond may result in a default judgment (e.g., wage garnishment, bank levies, liens).
- Seek help—consider hiring an attorney experienced in consumer debt. They can raise defenses (e.g., statute of limitations, improper service), negotiate settlement terms, or explore options like payment plans or bankruptcy.
- Potential defenses include improper service, disputing the debt’s validity, or asserting consumer protection claims. Community experiences also reflect the importance of formally filing an Answer or Motion and serving proof to the court.
C.
If Filing a Dispute With Capital One (e.g., credit card or transaction)
If your issue involves disputing a transaction (e.g., billing error or charge), here’s what to do:
- Organize your documentation (receipts, correspondence, etc.).
- Contact the merchant first—if unresolved, file a dispute with Capital One within 90 days of the transaction via the app or website.
- Capital One investigates—they may issue a temporary credit and resolve within 90 days.
- Outcome: Merchant may be found fully, partially, or not responsible. If unsatisfied, follow the appeal instructions provided.
Summary Table
Case Type
Current Status & Who’s Sued
Your Action
NY AG Lawsuit
Capital One sued for deceptive savings practices
Monitor for potential restitution; not yet a class settlement.
CFPB Lawsuit
Dropped in Feb 2025
No action needed; suit no longer proceeding.
Trump Org. Lawsuit
Capital One sued for alleged political bias
Applicable only if you’re part of Trump Organization legal entities.
360 Savings Class Action Settlement
$425M settlement pending approval
No claim needed. Choose payment method/update by Oct 2, 2025. Opt out or object as desired.
Individual Debt Lawsuit
Capital One may sue for debt collection
Review complaint; respond within timeframe; consider legal defense or negotiation.
Credit Card/Transaction Dispute
Dispute via merchant or Capital One
File within 90 days using app or website; track investigation results.
In Summary
- 360 Savings class settlement offers automatic compensation—just ensure your payment method and account closure status are set by October 2, 2025.
- NY AG’s suit and Trump Org.’s suit are active legal cases; no action is required unless you’re directly involved.
- CFPB’s suit has been dropped.
- If you’re personally sued, act fast by reviewing and responding appropriately—legal counsel is highly recommended.
- For disputes, use Capital One’s online channels within the 90-day window for transactional issues.
0
0 comments
Capital One is being Sued
