California Attorney General Rob Bonta has welcomed the preliminary approval of a new class action settlement that, if finalized by the court, will require Capital One to pay $425 million in restitution and provide improved interest rates for its 360 Savings account customers. The settlement follows concerns raised by Bonta and other attorneys general over an earlier proposed agreement they said did not adequately compensate affected consumers.
“Capital One misled consumers through false marketing and a lack of transparency regarding its savings account system, cheating consumers nationwide. Given an opportunity to make loyal customers whole, Capital One sank their teeth in even more, attempting to underpay people it harmed and continue its deceptive practices,” said Attorney General Bonta. “My office proudly stepped in and called this out for what it was: unacceptable and hopelessly inadequate. California consumers deserve a fair deal and someone fighting in their corner. We celebrate a settlement of more than double what was initially brought to the table. I thank my friend and colleague, New York Attorney General Letitia James, for leading this effort and taking further action to hold Capital One accountable.”
The revised settlement is more than twice the value of the previous proposal, which would have provided less than $300 million in restitution payments and $125 million in future additional interest payments while allowing Capital One to continue paying lower interest rates on 360 Savings accounts.
The resolution also addresses related claims by several states—including California, Maryland, Massachusetts, Minnesota, Nevada, New York, Ohio, and Rhode Island—giving them authority to enforce consumer relief payments. It prohibits Capital One from making false or deceptive statements about deposit account interest rates or violating state consumer protection laws.
Capital One had marketed its 360 Savings accounts as “high interest” products but kept their rates low even as national rates increased starting in 2022. The bank introduced a similar product with higher returns—360 Performance Savings—which at one point offered more than 14 times the rate of the original accounts.
After objections from Bonta and his counterparts led the court to reject the initial settlement proposal last year, Capital One agreed to terms that include matching interest rates between both types of savings accounts. This change is expected to result in an estimated $530 million in additional future interest for consumers nationwide.
The case highlights ongoing efforts by state attorneys general to protect consumer interests following changes at federal agencies such as the Consumer Financial Protection Bureau (CFPB). The CFPB dismissed a related enforcement action against Capital One prior to this agreement.
As California’s chief law enforcement official overseeing legal representation, criminal investigations, consumer protections and civil rights initiatives statewide according to its official website, Attorney General Bonta leads an office focused on enforcing state laws and safeguarding public rights throughout California.