Capital One Representment Fees $16M settlement

Capital One has agreed to pay $16,000,000 to settle a class action lawsuit for alleged improper assessment and collection of Representment Fees on certain transactions. This settlement benefits current and past Capital One consumer checking account holders who were charged these fees from September 1, 2015, through January 12, 2022.

Who Benefits?: Current and past Capital One consumer checking account holders charged Representment Fees during the specified period.

How much can I get?: Settlement Class Members will receive a pro rata share of the Net Settlement Fund based on the number of Representment Fees they paid or were assessed.

Important Dates

• Deadline to Opt-Out of the Settlement: June 17, 2024
• Deadline to Object to the Settlement: June 17, 2024
• Final Approval Hearing: July 15, 2024
• Claim Deadline: There is no specific claim deadline because Class Members do not need to submit a claim form.

Can I Claim an Award?

To be eligible for a payment or account credit from this settlement, you must be a current or past Capital One consumer checking account holder who was charged a Representment Fee between September 1, 2015, and January 12, 2022. Representment Fees include unrefunded NSF Fees or Overdraft Fees charged for either a Represented Check or Represented ACH after Capital One had returned that Check or ACH debit for insufficient funds and assessed an NSF Fee on a prior presentment of that Check or ACH debit.

If you received an Email Notice or Postcard Notice, then Capital One’s records indicate that you may be a member of the Settlement Class and entitled to receive a payment or credit to your Account. The Court directed that Notice be sent to all Accountholders in the Settlement Class because each such Accountholder has a right to know about the proposed Settlement and the options available to him or her before the Court decides whether to approve the Settlement.

What Awards Can Class Members Claim?

The balance of the Settlement Fund after attorneys’ fees and costs and the Service Award, also known as the Net Settlement Fund, will be divided among all Settlement Class Members entitled to Settlement Class Member Payments in accordance with the formula outlined in the Settlement. Assuming all requested disbursements from the Settlement Fund described above are approved in full, there will be a Net Settlement Fund of approximately $10,308,909.16 that shall be paid pro rata to the Settlement Class Members based upon the number of Representment Fees that each Settlement Class Member paid or was assessed. This results in each individual Settlement Class Member Payment.

Current Accountholders at the time the Settlement is effective and who are entitled to a Settlement Class Member Payment will receive a credit to their Accounts for the amount they are entitled to receive. Past Accountholders at the time the Settlement is effective and who are entitled to receive a Settlement Class Member Payment shall receive a check from the Settlement Administrator.

What Transactions Are Covered by the Settlement?

The products or services that are the subject of this settlement are Capital One consumer checking accounts. The specific issue involves the improper assessment and collection of Representment Fees on certain transactions. Representment Fees include unrefunded NSF Fees or Overdraft Fees charged for either a Represented Check or Represented ACH after Capital One had returned that Check or ACH debit for insufficient funds and assessed an NSF Fee on a prior presentment of that Check or ACH debit.

• Represented ACH: An ACH debit that was presented for payment and marked with RETRY PYMT or REDEPCHECK.
• Represented Check: A Check that was presented for payment in the same amount and with the same check number as another Check that was returned for insufficient funds.

Is Proof Required to Claim the Reward?

No proof is required to claim the reward. If you are an Accountholder in the Settlement Class, then you may be entitled to receive a payment or credit for Representment Fees without having to make a claim, unless you choose to opt-out of the Settlement.

How to Claim Your Award

To claim your award, you do not need to take any action if you are a member of the Settlement Class. If the Settlement is approved, you will automatically receive a payment or account credit. For more information, you can visit the official settlement website at .

If you wish to opt-out or object to the Settlement, you must send a letter to the Settlement Administrator by the specified deadlines. Detailed instructions on how to opt-out or object can be found on the official settlement website.

$16,000,000 Settlement Fund Breakdown

Capital One has agreed to create a Settlement Fund of $16,000,000. This fund will be used to pay Settlement Class Member Payments, any attorneys’ fees and costs, and any Service Award ordered by the Court. The Net Settlement Fund, which is the Settlement Fund minus Court-approved attorneys’ fees and costs and any Court-approved Service Award, will be divided among all Settlement Class Members entitled to Settlement Class Member Payments based on a pro rata formula.

Class Counsel will request the Court to approve attorneys’ fees of up to $5,401,090.84 or 33.33% of the Value of the Settlement and will request reimbursement for litigation costs incurred in filing and litigating the Action. Class Counsel will file an application to make this request no later than May 31, 2024. The Court will decide the amount of the attorneys’ fees and costs based on a number of factors, including the risk associated with bringing the case on a contingency basis, the amount of time spent on the case, the amount of costs incurred to prosecute the case, the quality of the work, and the outcome of the case.

Why is There a Class Action Settlement?

The lawsuit that is being settled is entitled Bob McNeil v. Capital One Bank, N.A. It is pending in the United States District Court for the Eastern District of New York, Case No. 1:19-cv-00473. The case is a class action. That means that the Class Representative, Bob McNeil, is an individual who is acting on behalf of current and past Capital One Accountholders who were assessed certain fees called Representment Fees from September 1, 2015, through January 12, 2022.

In any lawsuit, there are risks and potential benefits that come with a trial versus settling at an earlier stage. It is the Class Representative’s and his lawyers’ job to identify when a proposed settlement offer is good enough that it justifies recommending settling the case instead of continuing to trial. In a class action, the Class Representative’s lawyers, known as Class Counsel, make this recommendation to the Class Representative. The Class Representative has the duty to act in the best interests of the class as a whole and, in this case, it is his belief, as well as Class Counsel’s opinion, that this Settlement is in the best interest of all Accountholders in the Settlement Class.

In Class Counsel’s opinion, there is legal uncertainty about whether a judge or a jury will find that Capital One was contractually and otherwise legally obligated not to assess the Representment Fees at issue. Even if it was contractually wrong to assess these fees or Capital One misrepresented the practice, there is uncertainty about whether the Class Representative’s claims are subject to other defenses that might result in no or less recovery to Accountholders in the Settlement Class. Even if the Class Representative was to win at trial, there is no assurance that the Accountholders in the Settlement Class would be awarded more than the current Settlement amount and it may take years of litigation before any payments would be made. By settling, and based on Class Counsel’s experience, the Accountholders in the Settlement Class will avoid these and other risks and the delays associated with continued litigation.

While Capital One disputes the allegations in the lawsuit and denies any liability or wrongdoing, it enters into the Settlement solely to avoid the cost, delay, and uncertainty of further proceedings in the litigation.

Who is Excluded from the Settlement?

Excluded from the Settlement Class are Capital One, its parents, subsidiaries, affiliates, officers and directors, all Accountholders who make a timely election to opt-out, and all judges assigned to this litigation and their immediate family members.