On July 15, 2024, the United States District Court for the Eastern District of New York gave final approval to a settlement in the McNeil v. Capital One Bank, N.A. class action lawsuit (Case No. 19-cv-00473- RER-TAM).
Payments to class members will be distributed within 60 days from the final hearing. Those affected are advised to be patient while the process takes place. The class action lawsuit alleges that Capital One breached its contract with account holders by improperly imposing and charging representation fees on certain transactions.
These “representation fees” are charges for unrefunded insufficient funds or overdrafts, applied to checks or ACH debits that were resubmitted after previously being declined for insufficient funds and having already incurred an initial fee.
How to Receive Your Share of the Capital One Agreement?
Although Capital One did not admit any wrongdoing, it decided to settle the lawsuit to avoid the costs, delays and uncertainties associated with litigation. The Court has not ruled on who is right in this case.
Settlement Fund for Capital One Plaintiffs and Their Rights
A Settlement Fund of $16,000,000 has been created to cover payments to class members, legal fees and costs, and any service awards ordered by the Court. Current and former Capital One consumer checking account holders may be eligible to receive a payment from the Settlement Fund.
The legal rights and options of those affected are:
1. Do Nothing and Get Paid
If no action is taken and the settlement is approved, class members will receive a payment or credit to their account, as long as they have not opted out of the settlement.
2. Opt Out of the Agreement
Members can opt out of the settlement, meaning they will not receive any payments or credits to their account, but will maintain their right to file individual claims against Capital One.
3. Object to the Agreement
You can mail an objection to the Settlement Administrator explaining why you think the Court should reject the settlement. If the Court approves the settlement and rejects the objection, members will receive a payment or credit to their account and will not be able to sue Capital One for the claims brought in this action. If the Court accepts the objection, the agreement may not be approved.
The Court must still decide whether to approve the agreement. Payments and account credits will be provided if the agreement is approved and once appeals, if any, are resolved. For more information, it is recommended to review the Frequently Asked Questions and Long Notice available on the official website of the case.
Key dates
- June 17, 2024: Deadline for opting out of the agreement.
- June 17, 2024: Deadline for objections to the agreement.
- July 15, 2024 at 10:00 a.m. EDT: Final approval hearing.
Capital One Data Breach Class Action Settlement — Another Fund Created for Plaintiffs
In 2024, numerous clients of Capital One Bank filed a class action lawsuit alleging illegal collections by the bank. The charges in question include unreimbursed insufficient funds (NSF) fees and other costs related to failed transactions. This practice affected many clients for several years, which prompted legal action.
To settle the lawsuit, Capital One has agreed to provide $16 million in compensation to affected customers who meet the eligibility criteria. This situation has had a significant impact on the bank’s reputation, hindering the trust of its customers and negatively affecting its business operations.
Eligibility Criteria to Get a Payment
To receive part of the settlement amount, customers must meet certain requirements:
- Be a Capital One Bank account holder between September 2015 and January 12, 2022.
- Have been charged for ACH transactions or representation fees.
- To have settled the failed transaction after having sufficient funds.
- Submit your claim before the established deadline.
Additional Information: Not all Capital One customers are eligible to receive the payment. However, those who meet the requirements will be able to access the compensation. Interested parties should make sure to carefully review the eligibility criteria and submit their claim on time.
