In 2025, the subject of a significant banking scandal emerged, involving Credit One and its savings account customers. Currently, a class action settlement totaling $425 million is taking place, which seeks to repay customers who reportedly lost interest on large sums due to deceptive account methods. The issue has provoked public interest and invited important questions regarding transparency within the banking industry.
Let’s dissect the whole story, who’s eligible, how much you might get, and what happens next.
Why the Credit One Bank Class Action Lawsuit Occurred
The dispute involves two comparable Credit One products: the 360 Savings account and the 360 Performance Savings account. The first 360 Savings account was released in 2013 and received extensive marketing as having one of the highest savings rates in the country. Credit One released the 360 Performance Savings account in 2019 with a much larger APY.
Here’s the issue: Most of the customers were left in the old 360 Savings account, which over time fell to a paltry 0.3% interest rate. Meanwhile, the new account soared to more than 4% APY. Customers reported that they were not informed of the disparity and lost more than $2 billion in possible interest.
Allegations Against Credit One Bank
The legal actions charged that Credit One deliberately confused consumers. Plaintiffs believed that Credit One erased language mentioning the previous account from its website and diverted traffic to the new product page. Employees were only said to have mentioned the more recent account if asked directly.
Consequently, customers continued to receive less interest on their savings, not knowing they could migrate to a better product. Three-quarters of the legacy account holders, as per settlement documents, never switched, leading to significant financial losses.
The $425 Million Credit One Bank Settlement Breakdown
The $425 million settlement has two significant allocations:
- $300 million will be distributed to eligible clients who had an account in 360 Savings at any point during the period between September 18, 2019, and the time the settlement is ratified.
- $125 million will be paid as interest on top of what current owners of the legacy 360 Savings account already have.
Payout: The payouts will depend on the amount of money a customer had in the account and for how long. Thus, a person who maintained a larger balance for a number of years might be paid more than a person with a smaller balance over a short period of time.
Who Can Claim the Credit One Bank Settlement Money?
If you held a 360 Savings account at the time in question, you are entitled to claim your portion of the settlement. The majority of claimants will be notified by post or email with a link or details of how to make a claim.
You will need to comply with instructions from the nominated claims administrator, who will oversee the process. Make sure you do so within the period noted on your notice.
What If You Don’t Receive a Notice?
Even though you didn’t get notified, it’s not the end of the road. A settlement website will be up and running so that those eligible can reach out directly to the administrator or call a toll-free number. Some members might have updated their addresses and emails since account closure, so it’s a good idea to monitor public notices.
Will the Payment be for the Entire Lost Interest?
Experts say it’s not likely customers will be made whole, 100% loss-wise. Settlements are all about compromise, and that’s what this case is.
Legal analysts say while customers missed out on about $2 billion in interest, the eventual payment is less than a fourth of that. Lawyers indicate this is standard practice because settlements have to balance legal risk, expenses, and results.
What Happens Next?
A U.S. District Court judge in the Eastern District of Virginia must still sign off on the deal. Payments will start once it is approved, but it could be months before money actually ends up in customers’ hands.
A different lawsuit from New York Attorney General Letitia James against CreditCredit One continues on. Experts think New York will continue to pursue claims under state law, even if the national deal goes through.
Why Did Credit One Settle?
Credit One is not admitting any wrongdoing but decided to settle in order to avoid lengthy legal expenses and reputational damage. Lawyers say that settling tends to allow companies to escape the uncertainty of a jury trial and regain control over damages.
Julie A. Hill, a law professor who teaches banking law, says, “You’re over and done with it. You’re not paying a lot of money to your lawyers. You’re not going before a jury that may or may not be sympathetic.”
Conclusion
The Credit One class action settlement is the largest in recent banking history. If you ever had a 360 Savings account, you might be eligible for a share of the $425 million settlement.
Look for a notice in your email or mailbox, or stay tuned online. This is a genuine chance to get back some of the interest you lost out on, so don’t miss it.
Stay up to date. Educate yourself about your rights. And always read the small print when it involves your money.
