Capital One class action alleges bank canceled cash-back rewards at account closure

On May 11, 2026, Misty Loiacano of Azusa, California, filed a class action lawsuit against Capital One N.A. in the Superior Court of California for Los Angeles County. The complaint alleges the bank canceled cash-back rewards cardholders earned and then closed their accounts.

The lawsuit, Loiacano v. Capital One N.A. (case no. 26STCV14983), seeks to represent a nationwide class of cardholders who allegedly lost rewards after Capital One closed their accounts without cause.

What the lawsuit claims

Loiacano says she used a Capital One QuicksilverOne Rewards card promising 1.5% unlimited cash back on every purchase. She claims she paid the $39 annual fee and built up a rewards balance under the terms of her cardholder agreement.

In or around August 2024, Capital One allegedly closed her account with no advance notice. Loiacano says she did not default or violate any term of her agreement. After it closed the account, the bank allegedly refused to pay her accumulated rewards or the rewards she earned in the weeks before it shut the card down.

Loiacano says she received no written notice from Capital One explaining the closure. Other cardholders in similar situations receive a form letter citing "activity inconsistent with typical customer account usage" as the reason, the suit claims. The complaint alleges this form letter violates the Equal Credit Opportunity Act, a 1974 federal law requiring lenders to give specific written reasons within 30 days of an adverse action.

The cardholder agreement reserves the right to disqualify a cardholder in cases of fraud, abuse of program privileges or violation of the terms, the complaint states. It also says Capital One may apply the cardholder's rewards balance to any credit balance they owe when it closes an account and will refund any positive balance by check.

The alleged financial incentive

Every time someone uses a Capital One card, the bank collects an interchange fee from the merchant, typically 2% to 3% per transaction, that helps fund rewards programs, the lawsuit states. By closing accounts and canceling the rewards, Loiacano claims Capital One kept the interchange revenue while avoiding the rewards payout. Capital One issued $9 billion in customer rewards in 2024, according to the suit.

The lawsuit cites 18 complaints Capital One cardholders filed with the Consumer Financial Protection Bureau nationwide with reported losses ranging from $18 to $7,000. In December 2024, the CFPB issued a circular identifying card issuers' practice of canceling earned rewards as potentially unlawful, unfair and deceptive when justified by hidden or vague conditions.

The legal claims

The class action lawsuit brings five claims against Capital One:

• Breach of contract and the implied covenant of good faith and fair dealing based on the bank's alleged failure to honor its own agreement
• Unjust enrichment, pleaded as an alternative if the contract claims do not prevail
• California Business and Professions Code Section 17200, the state's unfair competition law
• California Business and Professions Code Section 17500, the state's false advertising law
• ECOA and Regulation B, the federal requirement to give specific reasons for adverse action

What the lawsuit means for Capital One cardholders

The case is in its early stages. There is no settlement, no claims process and no money available at this time. The complaint asks the court to certify a nationwide class, award damages, order Capital One to refund or reinstate canceled rewards and permanently bar the bank from canceling rewards tied to non-default account closures.