Capital One customers affected by representment fees between 2015 and 2022 may soon receive compensation through a class action settlement.
This settlement resolves allegations that Capital One improperly charged non-sufficient funds (NSF) fees and overdraft fees on re-presented checks and ACH transactions, after returning them for insufficient funds.
Eligible claimants will receive compensation following a final court approval.
Here’s a detailed breakdown of the Capital One settlement, eligibility requirements, and expected payment timeline.
Background on the Settlement
The Capital One Bank Settlement 2024 addresses claims that Capital One unfairly charged representment fees on transactions that had previously incurred NSF or overdraft fees.
The settlement establishes a $16 million fund, though legal fees and expenses reduce the total to $10,308,909.16. Compensation will be distributed to eligible account holders who were charged these fees between September 1, 2015, and January 12, 2022.
Additionally, this settlement is separate from the $190 million data breach settlement that Capital One reached in 2019 following a cyberattack affecting millions of customers. However, both settlements are designed to provide financial relief and security protections to Capital One account holders impacted by these incidents.
Eligibility for the Settlement
To qualify for a payment, you must:
- Have held a Capital One account between September 1, 2015, and January 12, 2022.
- Have incurred representment fees during this period, which includes NSF and overdraft fees on transactions previously returned due to insufficient funds.
- Not have opted out of the class action settlement. Those eligible should have received Email or Postcard Notices from Capital One notifying them of potential eligibility.
Proof of Eligibility
Customers were notified of their eligibility via email or postal mail, which serves as confirmation. Both current and former account holders who paid representment fees are eligible.
Key Dates and Payment Information
- Final Hearing: The United States District Court for the Eastern District of New York held the final hearing for McNeil v. Capital One Bank, N.A. (Case No. 19-cv-00473-RER-TAM) on July 15, 2024. Following this hearing, final approval was granted for the settlement.
- Expected Payment Date: Payments are expected within 60 days of the final hearing. Eligible participants should therefore anticipate receiving their funds by mid-September 2024.
- Payment Amount: Settlement payouts are based on a pro rata distribution, meaning the final payment amount will depend on the total number of valid claims. Though the initial settlement is $16 million, the amount set aside for payments after legal fees is approximately $10.3 million.
- Payment Method: Payments will be issued automatically, either as credits for current Capital One accounts or as digital payments for former account holders. Claimants can expect payouts of up to $25,000 in exceptional cases involving significant documented losses, though most payments will be smaller and will vary based on each claimant’s incurred fees.
No Action Required for Eligible Participants
Eligible customers do not need to take further action if they have already received notification. Those who chose not to opt out of the settlement will automatically receive a payout if they are eligible. However, if someone wishes to challenge or opt out of the settlement, they were required to do so by June 17, 2024.
Summary of the Capital One Settlement 2024
The settlement represents a meaningful resolution for impacted Capital One customers, though the final payout amount for most recipients will depend on the number of claimants. Here’s a quick summary:
| Settlement Details | Description |
|---|---|
| Eligibility | Account holders charged representment fees between September 1, 2015, and January 12, 2022 |
| Final Settlement Fund | $10,308,909.16 after legal fees |
| Opt-Out Deadline | June 17, 2024 |
| Final Hearing Date | July 15, 2024 |
| Expected Payment Timeline | Within 60 days post-final hearing (by mid-September 2024) |
| Payment Method | Automatic (credits or digital payments) |
| Pro Rata Payment Distribution | Varies by individual case, based on incurred fees |
For further details or specific inquiries, affected individuals should visit the official settlement website or contact the settlement administrator for additional information on payment processing.
The Capital One Bank Settlement 2024 aims to rectify past fee practices, providing some financial relief to those impacted by representment fees.
