In 2024, Capital One reached a significant settlement agreement worth $16 million, addressing claims related to “representment fees” charged to customers between September 1, 2015, and January 12, 2022. This blog post will break down the key details of the settlement, eligibility criteria, and what affected customers can expect in terms of payouts.
Background of the Settlement
In July 2019, Capital One disclosed a massive data breach affecting approximately 98 million U.S. consumers. This breach led to multiple lawsuits, culminating in the recent settlement. The primary focus of this settlement is to compensate customers who were unfairly charged representment fees, which are fees imposed when a bank transaction is re-presented after initially being declined due to insufficient funds or other reasons.
Read More About Capital One Bank Settlement 2024 Payout Date
Eligibility Criteria
To qualify for a portion of the settlement, customers must meet the following conditions:
- You must have paid representment fees on a Capital One checking account between September 1, 2015, and January 12, 2022.
- You must not have excluded yourself from the settlement before June 17, 2024.
Distribution of the Settlement Fund
The $16 million settlement fund will cover various costs and expenses before distributing the remaining amount to eligible class members. Here’s how the fund will be allocated:
- Attorney’s Fees and Costs: Approximately $5,401,090.84, which is 33.33% of the settlement fund.
- Service Awards: Up to $5,000 for the class representatives who filed the lawsuit.
- Litigation Costs: Estimated to be around $290,000.
- Administration Costs: These are the costs associated with managing the settlement process.
After these deductions, the Net Settlement Fund, which is approximately $10 million, will be distributed equally among the eligible class members based on the number of valid claims filed.
Expected Payouts
The exact amount each class member will receive depends on the total number of valid claims. The settlement administrator will calculate the payout per person once all claims are submitted and reviewed. It is anticipated that the payments will be issued within 60 to 90 days following the final court approval, provided there are no objections or appeals.
How to Receive Your Payout
Class members who did not object to or opt out of the settlement will automatically receive their payment. The funds will be credited to the customers’ accounts or mailed as checks, depending on the information provided during the claim submission process.
Additional Benefits
Apart from the cash payments, the settlement also provides Identity Defense Services and Restoration Services to help protect against unauthorized use of personal information. These services are available to all class members until February 13, 2028.
Conclusion
The 2024 Capital One Bank settlement offers significant compensation to affected customers and additional security measures to protect their personal information. Eligible customers should ensure they have submitted their claims correctly to receive their share of the settlement fund.
