Capital One $425 Million Interest Rate Deal Tossed as Inadequate

Capital One NA’s proposed $425 million settlement to resolve claims it misled 360 Savings account holders about the interest rates they received doesn’t give class members reasonable or adequate relief, a federal judge said.

Under the proposed deal, “millions of class members would continue to experience the same financial harm they have already experienced for years,” said Judge David J. Novak of the US District Court for the Eastern District of Virginia, rejecting the motion for final settlement approval Thursday.

Novak had granted preliminary approval in June, but eighteen state attorneys general, led by New York’s Letitia James, opposed the ...