A federal judge of the U.S. District Court for the Eastern District of Virginia rejected Capital One’s $425 million class action settlement with depositors who accused the bank of tricking them out of higher interest rates on Nov. 6, ruling that the payout was insufficient and that millions of depositors would continue to be shortchanged.
According to a January complaint, the class action settlement stemmed from Capital One’s freezing of interest rates at 0.3 percent on its 360 Savings Accounts, labeled as “high interest” accounts. Depositors also alleged that Capital One offered rates of more than 4 percent to new customers on similarly named 360 Performance Savings Accounts.
