Capital One has reached a settlement agreement of $16 million to resolve claims of unlawfully charged fees on return checks and ACH debit transactions. This settlement is expected to benefit both current and former account holders who were subjected to these fees.
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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 either represented checks or ACH transactions. These fees were found to be unlawfully applied, prompting the class action lawsuit.
No Application Needed
One of the convenient aspects of this settlement is that affected customers do not need to submit a claim application. Capital One has already notified all impacted customers about their payment status. Those who are part of the class action lawsuit and do not choose to exclude themselves will receive their payments automatically.
Payment Distribution
The method of payment distribution depends on the current status of the account holders:
- Current Account Holders: They will receive their portion of the settlement fund as a direct account credit.
- Former Account Holders: They will be sent a physical check.
Key Dates
The deadline for exclusion and objection is set for June 17, 2024. The final hearing, where the settlement will be reviewed and potentially approved, is scheduled for July 15, 2024.
Recent History of Payouts
This isn’t the first significant payout from Capital One in recent years. In 2023, the bank agreed to a $190 million settlement following a major data breach in 2019 that affected over 100 million customers in the US and Canada.
Hackers accessed sensitive personal information of Capital One credit card holders, leading to this substantial settlement. Reddit users reported receiving payouts as high as $707.31 from this settlement, though the claim deadline for this case expired in November 2023.
Impact on Customers
These settlements highlight the importance of corporate accountability and the power of class action lawsuits in protecting consumer rights. For Capital One account holders, these payouts serve as a reminder to stay vigilant about fees and other charges on their accounts.
While the settlements provide financial compensation, they also push companies to improve their practices to avoid future legal issues. As a customer, it’s crucial to regularly monitor your account statements and report any suspicious or incorrect charges promptly.
Final Thoughts
Capital One’s recent settlements underline the bank’s ongoing challenges in adhering to regulatory standards and protecting customer information. These payouts, while significant, aim to rectify past mistakes and restore customer trust.
If you’re a Capital One account holder affected by these issues, ensure you understand your rights and stay informed about any potential future settlements. Financial institutions must be held accountable, and consumers must remain proactive in safeguarding their financial interests.
FAQs
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.
