Judge Rejects Capital One Settlement — Will 360 Savings Customers Still Get a Payout?
A federal judge has rejected the $425 million Capital One settlement, leaving millions of 360 Savings account holders wondering whether they will still receive a payout and what the rejection means for their potential compensation. Consumers are now searching urgently for answers like “Will I still get my Capital One settlement check?”, “Why was the settlement rejected?”, “Am I still eligible?”, and “What happens next?”
The ruling — which halted payments expected to begin within months — concluded that the settlement did not fairly compensate Capital One customers who lost years of interest due to the rate gap between 360 Savings and 360 Performance Savings. Now, affected customers may receive a larger payout, face longer delays, or — if the case goes to trial — possibly end up with nothing at all. This guide breaks down the current status, next steps, and what customers should do right now.
Why Capital One Was Sued: The 360 Savings vs. 360 Performance Savings Interest Rate Lawsuit
The lawsuit accused Capital One of maintaining two nearly identical savings products — 360 Savings and 360 Performance Savings — but paying dramatically different interest rates without clearly informing customers.
The interest gap that triggered the lawsuit
-
360 Savings: Dropped to 0.3% APY
-
360 Performance Savings: Rose as high as 4.35% APY
Plaintiffs argued that Capital One did not properly notify customers that they could switch to the higher-yield account and that the lack of clear communication caused millions of customers to miss out on meaningful interest over several years.
Why Judge Novak Rejected the $425 Million Capital One Settlement (Explained)
Judge David Novak of the Eastern District of Virginia rejected the settlement for several consumer-focused reasons:
1. The payout was too low
Consumer losses were estimated to be far greater — the settlement compensated less than 10% of the interest customers should have earned.
2. Capital One still hasn’t corrected the issue
Millions of customers remain stuck in the lower-yield 360 Savings account.
3. Settlement notices were misleading or unclear
Notably, an email titled “Earn a higher APY with a new account today” read like advertising rather than an important disclosure, according to the judge.
4. 18 state attorneys general objected
This unusually high number of objections signaled serious flaws.
5. Three-quarters of customers still earn lower rates
Court documents showed that most affected customers remained in the inferior account — even recently.
The judge concluded that the agreement was “neither reasonable nor adequate”, sending both sides back to renegotiate.
Will You Still Get a Capital One Settlement Check After the Rejection?
Short answer: You might — but nothing is guaranteed.
There are now three possible outcomes:
1. A new, improved settlement (most likely)
Both parties renegotiate a deal that gives customers more compensation and provides clearer notices.
✔ Payments resume
✔ Amounts may be higher
2. No settlement — case goes to trial (possible)
If the sides cannot agree, the case heads to trial in July 2026.
❌ No payout unless plaintiffs win
3. A larger payout for consumers (realistic)
Because the judge said the deal was too small, consumers could ultimately receive more than originally offered.
Who Is Eligible for the Capital One Settlement? Are You Still Included After the Rejection?
Eligibility has not changed, because the class itself remains active.
You likely qualify if you:
-
Held a 360 Savings account anytime between Sept. 18, 2019 – June 16, 2025
-
Received a settlement notice in August–October 2025
-
Lost interest because your account earned the lower rate
If you later switched to 360 Performance Savings, you may still be eligible based on the time you spent in the original account.
How to Check Whether You Qualify for a Capital One 360 Savings Settlement Payment
1. Search your email and mail
Look for notices from Capital One or the claims administrator sent between August and October 2025.
2. Log into your Capital One account
Check whether you were in:
-
360 Savings (low rate)
-
360 Performance Savings (higher rate)
3. Compare your historical interest rate
If you earned around 0.3%, you likely qualify.
4. Watch for new notices
A revised settlement will require updated disclosure letters, as ordered by the judge.
5. Avoid opting out
Opting out disqualifies you from receiving future payments.
Why the Capital One Settlement Rejection Surprised Experts
While class-action settlements are rarely denied at the final stage, legal experts note that judges have recently been taking a harder look at fairness, especially in financial and consumer-protection cases.
Factors that fueled this surprise:
-
Increased scrutiny of class-action settlements
-
Intervention from 18 state attorneys general
-
Concerns over deceptive or unclear notices
-
The significant interest rate disparity still impacting consumers
Experts now say this may set a precedent for closer examination of financial settlements going forward.
What Happens Next in the Capital One Settlement — And When Payments Could Resume
Here is the expected sequence of events:
1. New negotiations begin
Lawyers for both sides must address the court’s criticisms.
2. New settlement notices drafted
The judge made clear that the original notices were inadequate.
3. Court approval process restarts
A revised deal will require another fairness hearing.
4. Payment timeline resets
Realistically, payments may not begin until mid-2026 at the earliest.
5. Trial remains a possibility
A July 2026 trial date is set, though experts believe both sides prefer a settlement.
Do You Need to Do Anything Now? What Capital One Customers Should Know
No immediate action is required.
Your eligibility remains active.
However, you should:
-
Keep any settlement notices you received
-
Avoid opting out of the class
-
Stay updated as new information emerges
-
Consider switching to a higher-yield savings account (this does not affect eligibility)
-
Watch for revised settlement notices in 2026
FAQs: Common Questions About the Rejected Capital One 360 Savings Settlement
Is the Capital One 360 Savings settlement a scam?
No. The settlement was rejected by a federal judge because it did not compensate Capital One 360 Savings customers fairly, not because it was fraudulent or illegitimate.
Why was the Capital One settlement rejected?
Judge David Novak ruled that the $425 million Capital One settlement was “neither reasonable nor adequate,” noting that it covered less than 10% of the interest 360 Savings customers actually lost and relied on unclear notices.
Will I still get a payout from the Capital One 360 Savings settlement?
Possibly. A revised settlement is the most likely outcome. However, until a new agreement is reached, no payments will be sent.
Could I get more money now that the Capital One settlement was rejected?
Yes. The judge signaled that 360 Savings customers may deserve a larger payout, which could lead to an improved settlement.
Could I end up with nothing from the Capital One settlement?
Yes. If negotiations fail and the case goes to trial — and the plaintiffs lose — affected customers could receive no compensation.
Am I still eligible for the Capital One 360 Savings settlement after the rejection?
Yes. The class-action lawsuit is still active, and eligibility criteria have not changed. Most former and current 360 Savings customers remain part of the class.
Do Capital One customers need to file a claim right now?
No. Because the settlement was rejected, Capital One has not issued new claim instructions. A revised settlement will provide updated steps, if required.
When will Capital One settlement payments restart?
Not before mid–2026. The court will need to review and approve a new settlement, and new notices must be sent to all 360 Savings customers.
Does switching from 360 Savings to 360 Performance Savings affect my eligibility?
No. You may still qualify for compensation based on the time you spent in the lower-yield 360 Savings account.
Why are Capital One 360 Savings customers still earning lower interest rates?
The court noted that Capital One did not properly notify customers that they could switch to the higher-yield account, leaving many stuck in the lower-interest product.
Do I need to take any action right now regarding the Capital One 360 Savings lawsuit?
No — but you should save any notices you received, monitor updates, and avoid opting out of the class until a new settlement is announced.
⭐ Further Reading
👉👉 Edison’s Fast Pay Program: Why Fire Survivors Are Being Warned That “Fast Doesn’t Mean Fair”
If you’re dealing with an insurance dispute or a payout that seems lower than expected, you may find it helpful to read our in-depth guide on Edison’s Fast Pay wildfire settlement program — and why consumer advocates warn that “fast doesn’t mean fair.” It breaks down how utilities and insurers structure quick-payout programs, what survivors give up when they sign, and how to protect your rights before accepting any offer.
