Capital One Hit With Class Action Lawsuit Over Allegedly Unpaid Cashback Rewards
Capital One is facing a new class action lawsuit alleging the bank failed to pay promised cashback rewards earned through its Capital One Shopping program.
The lawsuit claims Capital One marketed specific cashback percentages to cardholders to encourage spending but then failed to deliver the advertised rewards. Many consumers report that cashback either never posted to their accounts or was paid out at a lower amount than promised.
What the Lawsuit Alleges
According to the complaint, Capital One represented that cashback rewards earned through Capital One Shopping would be credited within 45 days of a qualifying purchase. However, plaintiff Alan B. McNichols alleges that Capital One “regularly failed to provide cardholders with the payout that they had been promised in the offer after the cardholders made purchases in reliance on the offer.”
The lawsuit argues that Capital One benefited financially by underpaying or withholding cashback rewards, allowing the bank to report higher profits while failing to meet its obligations to cardholders.
Who Is Included in the Case?
McNichols is seeking to represent:
- A nationwide class of Capital One cardholders who claimed a Capital One Offer but did not receive the promised cashback
- A Connecticut subclass of affected consumers
The lawsuit names Capital One Bank N.A., Capital One Shopping Holdings LLC, and Capital One Financial Corp. as defendants.
Legal Claims Against Capital One
The complaint alleges multiple violations, including:
- Breach of contract
- Breach of the covenant of good faith and fair dealing
- Unjust enrichment and quasi-contract claims
- Violations of the Virginia Consumer Protection Act
- Violations of the Connecticut Unfair Trade Practices Act
The plaintiff is requesting a jury trial, declaratory and injunctive relief, and compensatory, treble, and punitive damages on behalf of himself and all class members.
Is There a Settlement Yet?
At this time, the lawsuit is still in the early stages, and there is no settlement money available to claim. However, if the case moves forward and results in a settlement or judgment, eligible Capital One cardholders could eventually be entitled to compensation.
Cardholders who believe they were affected may want to keep records of Capital One Offers they activated, screenshots of advertised cashback rates, and transaction histories.
Case Information
Case Name: McNichols v. Capital One Bank N.A., et al.
Case Number: 1:26-cv-00145
Court: U.S. District Court for the Eastern District of Virginia
