In 2023, Capital One Bank faced a lawsuit about representment fees. These are charges for checks or transactions that bounce due to not having enough money but later clear when funds are available.
The lawsuit claimed that Capital One unfairly charged these fees even if the account had enough money during the second attempt.
This article explains everything you need to know about the Capital One Bank Class Action 2024, including how much money is involved, who can claim it, and other important details.
What is the Capital One Bank Class Action 2024?
The lawsuit focuses on the representment fees Capital One charged. These fees were applied to transactions that first failed due to insufficient funds but were successful later when the account had money.
The argument was that these fees were unfair because the account eventually had enough money to cover the transaction.
Settlement Details
Settlement Amount
The lawsuit ended with a $16 million settlement in June 2024. This money is for customers who were charged representment fees from September 1, 2015, to January 12, 2022.
Distribution of Settlement
The $16 million will be shared among those who made claims during the claim period. How much each person gets will depend on the number of claims and their validity.
Eligibility Criteria
To get money from the Capital One lawsuit, you must meet these conditions:
- Account Holder: You were a Capital One account holder between September 1, 2015, and January 12, 2022.
- Representation Fees: You were charged representment fees on checks or transactions.
- Successful Clearing: These transactions later cleared when there were enough funds in the account.
Note that the claims period probably closed after the settlement was reached in June 2024.
Payment Timeline
Claims and Payout
Settlement payments are expected to start in June 2024. Check your bank statements and online banking for updates on your payment.
Monitoring for Fees
If you see an NSF fee that seems unfair, especially if the funds were available shortly after the transaction, contact Capital One. They might reverse the fee.
Differentiating Lawsuits
Representment Fee Lawsuit vs. Data Breach Lawsuit
Remember, this lawsuit is different from the 2019 data breach lawsuit. The data breach settlement ended in 2022, and the claims deadline has passed. However, identity theft protection services are still available until February 13, 2028, for those affected.
Tips to Avoid Future Fees
Here are some tips to help you avoid fees like these in the future:
- Maintain Sufficient Funds: Make sure your account has enough money to cover transactions.
- Regular Monitoring: Check your bank statements and online banking often to keep track of transactions.
- Communicate with Your Bank: If you think an NSF fee was unfair, contact your bank. They might be willing to reverse the fee.
The Capital One Bank lawsuit was about unfair bank charges. Even though the claim period is probably over, knowing about the case can help you manage your finances better.
What are representment fees?
Representment fees are charges for transactions that bounce due to insufficient funds but clear when funds become available.
Who is eligible for the Capital One lawsuit settlement?
You are eligible if you were a Capital One account holder from September 1, 2015, to January 12, 2022, and were charged representment fees.
When will the settlement payments be distributed?
Payments are expected to start in June 2024.
What should I do if I see an unfair NSF fee?
Contact Capital One to explain the situation. They might reverse the fee if it seems unfair.
How is this lawsuit different from the 2019 data breach lawsuit?
This lawsuit deals with representment fees, while the data breach lawsuit was about identity theft protection, which ended in 2022.
