Capital One has agreed to a $16 million settlement to resolve claims that it unlawfully charged fees on return checks and ACH debit transactions. This settlement will benefit both current and former account holders who were affected by these fees.
Fee Details
Between September 1, 2015, and January 12, 2022, Capital One charged fees known as “un-refunded non-sufficient funds fees” or “overdraft fees” on certain transactions. These fees were applied incorrectly, leading to the class action lawsuit.
No Application Needed
One good thing about this settlement is that affected customers don’t need to submit a claim application. Capital One has already notified all impacted customers about their payment status. Those included in the class action lawsuit will receive their payments automatically unless they choose to exclude themselves.
Payment Distribution
How payments are distributed depends on whether account holders are current or former customers:
- Current Account Holders: They will get their share of the settlement fund as a direct credit to their account.
- Former Account Holders: They will receive a physical check in the mail.
Key Dates
- Exclusion and Objection Deadline: June 17, 2024
- Final Hearing for Settlement Approval: July 15, 2024
Recent History of Payouts
This settlement follows a previous significant payout by Capital One. In 2023, the bank settled a $190 million case related to a 2019 data breach that affected over 100 million customers in the US and Canada. Some users received payouts as high as $707.31, though the claim deadline for this case ended in November 2023.
Impact on Customers
These settlements highlight the importance of holding companies accountable and protecting consumer rights. For Capital One customers, these payments serve as a reminder to monitor their accounts closely for any fees or charges. These cases also push companies to improve their practices to prevent future legal issues.
As a customer, it’s essential to regularly check your account statements and report any unusual or incorrect charges right away.
Who is eligible for the settlement?
Current and former Capital One account holders affected by the fees.
Do I need to apply to receive the settlement?
No, payments are automatic for eligible customers.
How will current account holders receive their payment?
As a direct credit to their bank account.
What about former account holders?
They will receive a physical check in the mail.
When is the final hearing for this case?
The final hearing is scheduled for July 15, 2024.