In 2019, Capital One suffered one of the most serious data breaches in modern financial history. This hack compromised sensitive personal information, including the names, addresses, credit scores, Social Security numbers, and bank account information of nearly 98 million customers and credit card applications.
This event had far-reaching consequences, triggering fears of identity theft and financial fraud, and resulted in a $190 million class-action settlement agreed in 2022.
Although the monetary compensation procedure has ended, affected persons can continue to receive ongoing benefits, which will provide assistance and protection until 2028.
Tale of Capital One Class Action Settlement
The action against Capital One attempted to recover both actual and intangible damages caused by the breach. The settlement gave financial assistance to affected customers and included provisions for long-term protection measures.
Financial Compensation for Losses
Eligible class members were able to file claims for payment of documented losses stemming from the breach. The compensation scheme contained:
- Out-of-Pocket Losses: Claimants may declare financial losses, such as illegal transactions, or expenses incurred to protect their personal information, such as credit monitoring.
- Lost Time Compensation: Individuals who spent time fixing issues connected to the breach were eligible for compensation based on a regular hourly rate.
- Maximum Payouts: The settlement provided for payments of up to $25,000 per individual for substantiated claims.
These claims needed to be submitted before September 30, 2022. Payments commenced in September 2023, and an extra round was distributed in September 2024. For many, this financial assistance was a key step in dealing with the fallout of the data breach.
Continuing Support for Capital One Settlement Class Members
Although the claims process is concluded, the settlement contained non-monetary incentives intended to shield class members from ongoing risks associated with the breach. These initiatives indicate a larger commitment to addressing long-term concerns about identity theft and fraud.
Identity Defense Services
All class members are entitled for Identity Defense Services, which include credit monitoring and notifications to odd conduct. These tools allow people to monitor their financial and personal data, serving as an early warning system for suspected identity theft.
Restoration Services
Restoration Services are also accessible to all affected individuals, including those who did not make claims inside the specified time frame. These services help people recover from incidences of identity theft by providing expert advice on issues such as fraudulent account openings or abuse of personal information.
Service Extensions
The settlement extended the protective measures until February 13, 2028. This longer schedule guarantees that class members receive ongoing support for years, reflecting the long-term nature of the dangers involved with the breach.
The continuous provision of Identity Defense and Restoration Services demonstrates the comprehensiveness of the Capital One settlement. These services give critical support to individuals who are still at risk as a result of the incident. Aside from financial restitution, the settlement acknowledges the long-term consequences of such acts and pledges to provide long-term protection.
Key Milestones in the Settlement Process
Here’s a chronology of the key events in the Capital One settlement.
| Event | Date | Details |
|---|---|---|
| Data Breach Occurred | 2019 | Unauthorized access to personal data of ~98 million customers. |
| Settlement Approval | September 13, 2022 | $190 million settlement granted final approval. |
| Claims Submission Deadline | September 30, 2022 | Deadline for filing claims for out-of-pocket losses and lost time. |
| Initial Payments Distributed | September 28, 2023 | First round of payments issued to eligible claimants. |
| Second Payments Distributed | September 4, 2024 | Additional payments provided to claimants who accepted initial compensation. |
| Services Extended | Through February 13, 2028 | Identity Defense and Restoration Services available to all class members. |