Capital One Agrees to Pay $425M to Settle Savings Account Lawsuit
Capital One was sued by depositors who claimed that the company had deceitfully promised high interest rates on 360 Savings accounts while offering new customers greater rates on 360 Performance Savings accounts.
According to the 360 Savings depositors, Capital One maintained their rates at 0.3% while providing 360 Performance Savings depositors with rates that peaked at 4.35% at the beginning of the previous year. The yield on the higher-yielding account is currently 3.6%.
In accordance with the settlement, Capital One will reimburse $300 million to 360 Savings depositors for interest that they could have been entitled to on 360 Performance Savings accounts. Depositors who still have 360 Savings accounts will get an additional $125 million in interest from the company.
The settlement covers depositors with 360 Savings accounts at any time since September 18, 2019. Legal fees will be paid by the settlement.
Over the past six months, COF shares have gained 9.5% compared with the industry's rise of 13.6%.
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Currently, Capital One carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This month, UBS Group AG UBS agreed to pay $511 million to resolve a tax probe by the U.S. Department of Justice ('DOJ') against Credit Suisse for preparing false income tax returns and tax evasion. UBS Group AG acquired Credit Suisse in 2023.
The two-year investigation by the DOJ, initiated before UBS acquired Credit Suisse, found that Credit Suisse aided and assisted in tax evasion through its 475 offshore accounts in the preparation of false tax returns to conceal more than $4 billion from the US Internal Revenue Service. The United States DOJ reported that most of this misconduct occurred between 2014 and June 2023.
In March 2025, Robinhood Markets Inc.'s HOOD units — Robinhood Financial and Robinhood Securities — agreed to pay $26 million to settle Financial Industry Regulatory Authority ('FINRA') allegations for failing to respond to red flags about potential misconduct and not verifying the identities of thousands of customers.
FINRA also ordered HOOD to pay $3.75 million in compensation to the trading platform's customers.
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