Capital One has agreed to a $16 million class-action settlement to address allegations of improperly charging customers representation fees on consumer checking accounts. If impacted, you could be eligible for a payment or account credit. Here’s everything you need to know about this settlement and how to benefit from it.
Table of Contents
What’s the Lawsuit About?
The class-action lawsuit accuses Capital One of breaching its contract with accountholders by assessing representation fees on certain transactions.
- Representment Fees: These are fees charged when a check or ACH debit, returned for insufficient funds (NSF), is re-presented for payment and leads to another fee.
- The lawsuit argued these fees were improper and violated customer agreements.
While Capital One denies any wrongdoing, the company opted to settle the lawsuit to avoid prolonged litigation.
Settlement Overview
The settlement establishes a $16 million Settlement Fund, which will cover:
- Payments or account credits to class members.
- Attorneys’ fees and costs.
- Service awards as ordered by the court.
Eligible account holders include current and former Capital One consumer checking account holders who were charged these fees between September 1, 2015, and January 12, 2022.
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What Are Your Options?
- Do Nothing
- If you take no action and the settlement is approved, you’ll automatically receive a payment or credit.
- Payments will be issued as account credits for current accountholders or checks for past accountholders.
- Opt-Out
- By opting out, you forfeit any settlement benefits but retain your right to sue Capital One independently for these claims.
- Opt-out deadline: June 17, 2024.
- Object to the Settlement
- If you disagree with the settlement, you may file an objection by mail. If your objection is overruled, you’ll still receive the payment or credit.
- Objection deadline: June 17, 2024.
Key Dates to Remember
- Opt-Out/Objection Deadline: June 17, 2024
- Final Approval Hearing: July 15, 2024, at 10:00 AM EDT
The final hearing will determine whether the settlement is approved. Payments will be distributed after approval and any appeals are resolved.
How to Stay Informed
- Visit the Official Settlement Website for more details, updates, and frequently asked questions.
- Monitor correspondence from the Settlement Administrator for specific payment instructions.
This settlement allows Capital One customers impacted by representation fees to receive compensation. If you qualify, you don’t need to file a claim to participate—sit tight and wait for payment if you do not opt out. For more information, visit the official website or contact the settlement administrator.
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