States Oppose Capital One $425 Million Settlement Over Rates (1)

Capital One Financial Corp.’s proposed $425 million settlement of a class-action suit over allegedly unpaid savings-account interest is being opposed by a bipartisan group of states who say the deal shortchanges account holders.

The settlemment is too low for customers who lost more than $2 billion and fails to impose any requirements that Capital One stop misleading consumers, New York Attorney General Letitia James, who is leading the states, said in a statement.

The 18 states that filed a joint opposition to the accord on Wednesday in federal court in Virginia aren’t involved in the case filed on ...