In 2023, Capital One faced a significant lawsuit regarding its practice of collecting representation fees. These fees were charged on checks and Automated Clearing House (ACH) transactions that initially bounced due to insufficient funds but were later cleared when the funds became available.
Many account holders felt these charges were unfair, leading to a legal battle that concluded with a substantial settlement. This article will cover everything you need to know about the Capital One Bank lawsuit in 2024, including settlement money, eligibility criteria, and payout dates.
Capital One Bank Lawsuit 2024: Settlement Money, Eligibility & Payout Dates
What Is the Capital One Bank Lawsuit 2024 About?
The Capital One Bank lawsuit in 2024 centers around the bank’s policy on representation fees. These fees were imposed on transactions that initially failed due to insufficient funds but were later processed successfully.
Account holders argued that it was unfair to charge fees once the account had sufficient funds. The legal action led to a $16 million settlement in June 2024, aimed at compensating those affected by these charges.
Capital One Class Action Settlement 2024 Payment Update
Settlement Details
- Company Name: Capital One
- Payment Status: Being sent in batches to the class-action members who claimed within the given timeline
- Country: USA
- Settlement Fund: $190 million
- Category: Finance
Understanding the Settlement
The main issue was the unfair representation fees imposed on transactions that eventually had enough funds to be processed. Despite the initial non-sufficient funds (NSF) status, the bank charged fees that many account holders believed were unjustified.
The lawsuit challenged the fairness of these fees and fought on behalf of the impacted account holders. Understanding the settlement specifics, including the amount of compensation and eligibility requirements, is crucial for those affected by these charges.
Settlement
The Capital One Bank lawsuit concluded with a $16 million settlement in June 2024. The settlement addressed representment fees charged between September 1, 2015, and January 12, 2022.
Eligible claimants had a specific period to submit their claims for a share of the settlement, and this window is now closed.
Settlement fund distributions are anticipated to take place in July 2024. If you notice an unfair NSF fee, especially if funds became available shortly after, it’s advisable to contact your bank and request a fee reversal.
Who is Eligible for the Capital One Settlement?
To qualify for the Capital One representment fee settlement, you must have held a Capital One account between January 12, 2022, and September 1, 2015, and paid representment fees on checks or ACH transactions that ultimately cleared successfully.
The settlement reached in June 2024 provided a specific period for filing claims, which has now ended. Account holders who filed their claims within this timeframe are eligible to receive a share of the settlement money.
Amount
A total of $16 million was settled in the Capital One Bank case. All qualifying claimants who filed within the claims window will split this amount.
The exact payout each claimant receives depends on the number of legitimate claims filed. It’s important to note that the $16 million represents the total settlement fund, not the individual payment amounts.
Data Breach Lawsuit
In addition to the represented fee lawsuit, Capital One faced a separate data breach lawsuit. A settlement was reached in 2022 regarding a major data breach in 2019 that exposed sensitive customer information.
The deadline to submit a claim for this breach has passed, but affected individuals can still use identity theft protection services until February 13, 2028. This data breach lawsuit is separate from the represented fee lawsuit involving Capital One.
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Conclusion
The Capital One Bank lawsuit in 2024 has led to a significant settlement, providing compensation for account holders affected by unfair representation fees. Understanding the details of the settlement, eligibility criteria, and payout dates is crucial for those impacted.
If you were affected by these charges, ensure you stay informed about the latest updates and know your rights to compensation.