States Ask Court to Reject Proposed Class Action Settlement in Capital One Case

Core Viewpoint - Eighteen state attorneys general are opposing a proposed class action settlement against Capital One, arguing it would inadequately compensate customers who were allegedly cheated out of interest on savings accounts [1][2][3]. Group 1: Legal Actions and Responses - The state attorneys general assert that the settlement would shortchange Capital One customers, as stated by the New York State Attorney General's office [2]. - New York Attorney General Letitia James leads a bipartisan coalition against the settlement, emphasizing the need for fair restitution for affected customers [3]. - Capital One has denied the allegations and claims that the settlement is reasonable to avoid the uncertainties of prolonged litigation [4]. Group 2: Settlement Details - The proposed settlement, announced on May 16, involves accusations that Capital One misled customers regarding interest rates on its 360 Savings accounts compared to its 360 Performance Savings accounts [5]. - Capital One is set to pay $300 million to 360 Savings depositors for lost interest and an additional $125 million in interest to current 360 Savings account holders [6]. Group 3: Related Legal Proceedings - New York filed a separate lawsuit against Capital One shortly before the proposed settlement, aiming to ensure accountability after the U.S. Consumer Financial Protection Bureau dropped a similar case [7].