2019 was a year when Capital One Bank recorded a considerable data breach. It has revealed similar personal information to about 98 million other customers in which the class action suit was born from the breach, leading to a much more substantial amount in settlement to cater sufficiently for the affected individuals. This lawsuit was settled by a $190 million settlement that was approved finally in 2022.
Settlement Amount and Compensation Description
It would be willing to entertain all claims up to that limit of $190 million set at settlement to cover different classes of losses and inconveniences to the customers. Qualified individuals would get such reimbursement for out-of-pocket amounts directly caused by this breach, including unauthorized charges, identity theft, and services necessary to recover from fraudulent activity.
The claimants were also eligible to get benefits on the time spent by the victims to deal with the consequences of the breach, which was at a rate of $25 per hour for a maximum of 15 hours. Moreover, claimants could also get free identity protection service to establish prefenetic damage. Based on severity and proof amounts related to losses, individuals could, on the whole, get up to $25,000 each.
Who Was Eligible?
In particular, an individual’s eligibility depended on the meeting of certain requirements. The potential Compensatees had to have been Capital One customers at the time of the such security breach. Those who suffered a financial loss or another type of suspicious activity triggered by the breach had to have proof of claim documentation available for such activity. Lastly, valid claim forms had to be submitted ahead of a deadline set at September 30, 2022, to qualify for having submitted a valid claim form.
When Were Payments Made?
The settlement disbursement process will be in multiple waves. The first wave has already been issued, starting from September 28, 2023. The second wave will follow on September 4, 2024, for eligible individuals who have previously accepted the settlement.
Come 2025, all payments will have been processed and fully distributed. No further payments will be issued. Any uncashed checks will no longer be valid for payment and cannot be reissued.
What If You Missed the Deadline?
Capital One has continued to care for the victims even though the deadline for claims appears to have passed. One such offering is the continued provision of identity protection and restoration services that run through February 13, 2028. Monitoring potential misuse of personal data is part of that program’s scope and helps recovery from identity theft.
Anyone affected by that breach, whether or not a claim was submitted, can access these services for additional protection.
Lessons Learned and Future Impacts:
Despite moral and legal reprimands from various stakeholders, the Capital One data breach brought to front several critical issues that plague the banking sector regarding the safety of data. In efforts to deter a repeat of the incident in the future, many financial institutions have overhauled their cybersecurity systems.
This case has also thrown light on the public awareness of the importance of personal data protection, the importance of identity monitoring services, and the legal position of consumers in the face of data breaches in organizations.