Capital One Agrees to Pay $13M In ATM Fees Settlement

A federal judge on Thursday approved a $13 million settlement ending claims Capital One charged out-of-network ATM fees on balance inquiries made on in-network ATMs.

More than 1.6 million Capital One account holders are expected to benefit from the settlement, according to the settlement agreement. 

Under the terms of the settlement, Class Members who paid at least one out-of-network fee on a balance inquiry during their state’s respective Class Period will receive a pro rata share of the settlement fund.

Plaintiff Jacob Figueroa filed his ATM fees class action lawsuit after allegedly being charged a $2 fee on a balance inquiry on an in-network ATM.

Figueroa claimed he would not have made the inquiry had he known he would be charged a fee, adding Capital One’s contract documents assure account holders they will not be charged fees when using in-network ATMs.

Figueroa also alleged Capital One charges two ATM fees when account holders make a balance inquiry before withdrawing cash at out-of-network ATMs.

“Not only does the non-Capital One ATM operator charge the consumer a fee for the use of its ATM, a charge which now averages $3, but Capital One charges [an out-of-network fee] for a cash withdrawal as well – a punishing double-fee on accountholders that can rise to a total of several dollars for simply accessing their money,” Figueroa said in his class action lawsuit.

The plaintiff said Capital One knows consumers expect a fair fee disclosure to be displayed on the screen of an ATM, and most U.S. ATMs ask consumers if they’d like to check their balance before making a withdrawal.

However, he said, the screen does not disclose that balance inquiries will result in a fee.

While the amount awarded to each Class Member will vary, the average payment is expected to $5.09, the agreement states. Awards are capped at $1,602.08.

The Class Periods begin on the following dates in states where the account was established: 

• Louisiana: April 6, 2008
• Connecticut, New York, and New Jersey: April 6, 2012
• Virginia: April 3, 2013 
• Texas: April 6, 2014
• Delaware, Maryland, and Washington, D.C.: April 6, 2015

All Class Periods end June 30, 2020.

The deadline for consumers to exclude themselves from the ATM fees settlement has passed. 

Now that the settlement has received final approval, payments can be disbursed to Class Members.

In addition to the monetary relief, Capital One also has agreed to “change its disclosures,” a move that’s intended to “result in additional savings for the Class and other customers ‘who will

now participate in a more free and more fair marketplace for banking services.’”

Capital One has not admitted to any wrongdoing, but agreed to the settlement in order to end the ATM fees class action lawsuit.

Did Capital One charge you out-of-network ATM fees on balance inquiries? Tell us about your experience in the comment section below.

The plaintiff is represented by Edwin J. Kilpela, Todd D. Carpenter, and Brittany C. Casola of Carlson Lynch Sweet Kilpela & Carpenter LLP; Jeffrey D. Kaliel and Sophia Gold of Kaliel PLLC; Richard D. McCune and Jae (Eddie) K. Kim of McCune Wright LLP; and Taras P. Kick of The Kick Law Firm.

The Capital One ATM Fees Class Action Lawsuit is Jacob Figueroa, et al. v. Capital One NA, et al., Case No. 3:18-cv-00692, in the U.S. District Court for the Southern District of California.

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