{"id":251821,"date":"2025-09-24T19:38:15","date_gmt":"2025-09-24T19:38:15","guid":{"rendered":"https:\/\/www.europesays.com\/us\/251821\/"},"modified":"2025-09-24T19:38:15","modified_gmt":"2025-09-24T19:38:15","slug":"capital-one-425-million-settlement-with-depositors-should-be-rejected-us-states-say","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/251821\/","title":{"rendered":"Capital One $425 million settlement with depositors should be rejected, US states say"},"content":{"rendered":"\n<p class=\"yf-1090901\">By Jonathan Stempel<\/p>\n<p class=\"yf-1090901\">(Reuters) -A bipartisan group of 18 U.S. states told a federal judge that Capital One&#8217;s (<a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/COF\" data-ylk=\"slk:COF;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" target=\"_blank\" rel=\"noopener\">COF<\/a>) $425 million settlement with depositors who felt cheated out of high interest rates should be rejected, because it lets the bank continue short-changing customers.<\/p>\n<p class=\"yf-1090901\">Led by New York Attorney General Letitia James, the states objected in a filing made public on Wednesday in federal court in Alexandria, Virginia, where U.S. District Judge David Novak granted preliminary settlement approval in June.<\/p>\n<p class=\"yf-1090901\">Capital One and a lawyer for the depositors had no immediate comment.<\/p>\n<p class=\"yf-1090901\">Capital One did not admit wrongdoing under the settlement.<\/p>\n<p class=\"yf-1090901\">The May 16 settlement addressed claims that Capital One froze rates at 0.3% on its &#8220;high interest&#8221; 360 Savings accounts, while quietly offering rates exceeding 4% to new customers on similarly named 360 Performance Savings accounts.<\/p>\n<\/p>\n<p class=\"yf-1090901\">Capital One, based in McLean, Virginia, agreed to pay 360 Savings depositors $300 million to cover interest they missed out on, plus another $125 million in interest if the depositors still held their accounts.<\/p>\n<p class=\"yf-1090901\">STATES SAY SETTLEMENT WOULD SAVE BANK MORE THAN $2.5 BILLION<\/p>\n<p class=\"yf-1090901\">But the states told Novak that 360 Savings depositors would earn just 0.78% under the settlement, below the 3.5% that Capital One now offers 360 Performance Savings depositors.<\/p>\n<p class=\"yf-1090901\">The states said this would save the sixth-largest U.S. commercial bank more than $2.5 billion, while providing typical depositors just $54 of the $717 in interest lost.<\/p>\n<p class=\"yf-1090901\">They also complained that Capital One wouldn&#8217;t have to change its behavior. They said Novak should reject Capital One&#8217;s claim that the settlement preempted James&#8217; own lawsuit on behalf of 360 Savings depositors in her state.<\/p>\n<p class=\"yf-1090901\">The settlement covers depositors with 360 Savings accounts at any time since September 18, 2019. A hearing to consider final settlement approval is scheduled for November 6.<\/p>\n<p class=\"yf-1090901\">Other states objecting to the settlement include Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, Ohio, Oregon, Rhode Island and Washington.<\/p>\n<p class=\"yf-1090901\">The U.S. Consumer Financial Protection Bureau filed a similar lawsuit against Capital One in January.<\/p>\n<p class=\"yf-1090901\">It dropped that case in February, after President <a href=\"https:\/\/www.yahoo.com\/people\/donald-trump\/\" data-ylk=\"slk:Donald Trump;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" target=\"_blank\" rel=\"noopener\">Donald Trump<\/a> took office and the White House largely ended the CFPB&#8217;s enforcement activity.<\/p>\n<p class=\"yf-1090901\">The case is In re Capital One 360 Savings Account Interest Rate Litigation, U.S. District Court, Eastern District of Virginia, No. 24-md-03111.<\/p>\n<p class=\"yf-1090901\">(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)<\/p>\n","protected":false},"excerpt":{"rendered":"By Jonathan Stempel (Reuters) -A bipartisan group of 18 U.S. states told a federal judge that Capital One&#8217;s&hellip;\n","protected":false},"author":3,"featured_media":251822,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[64,100529,133257,133256,49795,10495,67,132,68],"class_list":{"0":"post-251821","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-capital-one","10":"tag-david-novak","11":"tag-depositors","12":"tag-high-interest-rates","13":"tag-settlement","14":"tag-united-states","15":"tag-unitedstates","16":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115260968486399255","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/251821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=251821"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/251821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/251822"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=251821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=251821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=251821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}