Millions of current and former Capital One customers are in store for payouts after a federal judge gave a $425 million settlement the final green light this week.
Judge David Novak of the US Eastern District of Virginia on Monday finalized an agreement with the bank to settle accusations it steered customers away from accounts that paid much higher interest.
The lawsuit has been playing out in court for nearly two years, and Novak had rejected an initial settlement last November for not fairly compensating account holders.
Capital One has agreed to pay $425 million to settle accusations it created two savings accounts with very similar names – 360 Savings and 360 Performance Savings – that paid vastly different interest rates, without making the difference clear to customers.
That left customers unsure of which account they held, causing them to lose out on millions of dollars in interest payments, according to legal documents.
