Capital One, a US financial giant, will give $425 million in settlements to its customers as part of a class-action lawsuit.
Banks are accused by account holders of deliberately blocking higher rates on their savings accounts.
The bank has been accused specifically of misleading its clients by failing to inform them about 360 Performance Savings Accounts, which offer higher returns.
The 360 Savings Account rates were kept at 0.3%, preventing customers from gaining access to better rates.
The first to report the settlement was Reuters. A judge will have to approve it.
The government will compensate the depositors with $300 million for any interest that they would have been able to earn on their 360 Performance Savings Accounts, which had rates as high as 4.35% in 2013.
Depositors with 360 Savings Accounts will receive additional interest on the remaining $125 Million, compensating for lower rates.
Customers with 360 Savings Accounts since September 18, 2019 are covered by the agreement filed at federal court in Alexandria.
Capital One based in McLean Virginia hasn’t admitted wrongdoing, and at the time of publication, it hadn’t released any statement about the settlement.
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Capital One pays $425,000,000 to customers after allegedly cheating clients out of higher returns on bank balances. This article appeared first on the ICD.
