New York Attorney General Letitia James commended a new settlement requiring Capital One Financial (COF) to provide $425M in restitution and better interest rates for its 360 Savings customers, she said on Monday.
The AG, along with a number of other states, had accused the bank of misleading customers by marketing its 360 Savings accounts as “high interest” accounts, but instead its “360 Performance Savings” provided much higher rates.
The original proposed settlement would have provided less than $300M in restitution payments and would allow Capital One (COF) to continue paying the lower interest rate on 360 Savings accounts, the AG said.
The new settlement, which was preliminarily approved by the court today, will require Capital One to pay $425M in restitution, including an estimated $34M to New Yorkers who had 360 Savings accounts, the NY AG office said. In addition, the bank is required to match 360 Savings and 360 Performance Savings interest rates, erasing the misleading two-tiered system of accounts.
The Office of the Attorney General will voluntarily dismiss its lawsuit if the revised class action settlement receives final approval from the court and goes into effect, the office said.
In January 2025, the Consumer Financial Protection Bureau sued Capital One (COF), for allegedly misleading consumers about the interest rates on its 360 Savings account. The agency later dropped several suits against the bank.
Capital One (COF) stock fell 6.4% in Monday afternoon trading after President Trump ordered a 10% credit card interest rate cap.
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