A Class Action is a type of lawsuit in civil laws, and in this one or more than one individual come forward to sue the opposite party by representing a bigger group who has been damaged in the same way. This helps in all the members of the group to avoid their own legal suits, as they all can come together and file the complaint as a group. These type of lawsuits had started in the US, but with time, they have also entered the laws of many other countries including the likes of Canada, and other European nations.
The Class Action is helpful when it is found that there is a large number of injured individuals who have the same defendant, and their complaints are also the same. In the Class Action Lawsuit which was filed against the financial organization, namely, the Capital One Financial Corporation, the details of the settlement which have been approved by the order of the judgment are mentioned below. The class action against the Capital One (N.A.), Capital One Bank (USA), Capital One Financial Corporation, Amazon.com (Inc.), Capital One, Amazon Web Services (Inc.) proposed a Settlement in the Class Action in September 2022.
Capital One Settlement
The Capital One Settlement has been the result of Class Action against the Capital One Financial Corporation, Amazon, etc. as mentioned after it was revealed in a July 2019 (on 19th July 2019) update that there had been a data breach. It was reported that the company had identified that an individual from outside the company had been able to gain access (unauthorized access) to the data, and as a result, a lot of personal information which was related to the customers who use the Capital One Credit Cards had been obtained.
It must be noted that this data breach had obtained the data for a good number of individuals who had either been the customers for the Capital One Credit Cards, or they had applied for the products related to the credit cards at Capital One. As this was a big news, the company had started with the steps which were needed to work to help with this along with the Federal Law Enforcement in the US. This was a big step, and the FBI was able to find the outsider who had been able to obtain the Capital Card customers’ personal information.
Capital One Settlement Check
The data breach of the Capital One Credit Card customers had been a shock but with the help of the FBI, the outsider who was able to access the information was captured. After this, the government had also stated that the personal data had not been shared or used in fraud actions by the individual, and not only that, the complete Capital One Credit Card customer data had been recovered. As a result, the company mentioned that they have made it a part of their mission to invest more in cybersecurity, as the data breach had affected the company’s role in the age of today.
There was an official update by the CEO, Richard Fairbank, which said that he was grateful that the hacker was caught by the FBI, but at the same time, he apologized to the customers. In a report, it is also mentioned that the breach had affected a minimum of 100 million people in the US, and around 6 million people from Canada. As a result, it was required for the Capital One to create a Settlement Fund of 190 million dollars, and not only that, the other benefits to the customers in the Class Action includes:
- Cash Payment (for the time lost): For the time spent in remedying the action as a result of identity theft, frauds, etc.
- Cash Payment (for losses as out-of-pocket): For the verifiable cost which are unreimbursed but can be traced as a result of the 2019 breach.
- Identity Defense Service: A minimum of 3 years of services related to the Identity Defense were offered for free through Pango.
- Capital One Business Practice Change: There are many changes which the Capital One is going to include in their business so they can improve their information security.
- Restoration Services: This is given for free for a minimum of 3 years through Pango, and the users will be able to take help from the Fraud Specialists in the US.
Capital One Settlement Payment Date
If a member wanted to opt out of the Class Action against the Capital One, then the deadline for that was 07th July 2022. For the members who wanted to object to the proposed Capital One Settlement, there was a date but it has passed (it was 07th July 2022) too. For the claims which were related to the Out-of-Pocket Loss in the breach and/ or for the losses of Loss Time, a person was eligible if they had been given a notice for the Class Action Settlement. In this notice, the unique ID for a member and the PIN number which is required for the person to file a claim was listed.
The last date for any member to file their claims for the losses including from the Out-of-Pocket, and/ or Lost Time, and losses related to the Identity Defense Service was also mentioned to be on 30th September 2022. As a result, the payments to these eligible claims had also begun from 28th September 2023, and this had started as the final order was issued by a judgment that approved the Class Action Settlement finally on 13th September 2022.
For the eligible members, the digital payments had started in September 2023 (from 28th September 2023), and if the digital payment is not received by a member then there will be a paper check issued for the same. But this check is going to be issued after 2-4 weeks of the deadline which is mentioned for the digital payment claim (it is 27th November 2023). All the losses will be paid as the Settlement Fund required an amount of 190 million dollars by the Capital One for all the members.