Consumer finance lawsuits in 2025 and 2026 have produced billions of dollars in penalties, refunds, and class action settlements against major banks, credit card issuers, fintech apps, and predatory lenders. Some of the money is being paid out automatically to affected customers; other settlements require a claim by a specific deadline; and several large enforcement actions are still working their way through the courts. Here is what is happening, who is affected, and where consumers may be entitled to compensation.
Settlements Paying Money to Consumers Now
Capital One 360 Savings — $425 Million
A federal judge in the Eastern District of Virginia approved a $425 million settlement on April 20, 2026, in In re: Capital One 360 Savings Account Interest Rate Litigation (No. 1:24-md-03111-DJN). The suit alleged Capital One kept the interest rate on its legacy 360 Savings account frozen at 0.30% while quietly offering a nearly identical “360 Performance Savings” account that reached 4.35% by January 2024.1Capital One 360 Savings Account Litigation. Capital One 360 Savings Account Interest Rate Litigation Settlement2CBS News. Capital One Settlement: How Much Will You Get
If you held a 360 Savings account between September 18, 2019, and June 16, 2025, you do not need to file a claim. Payments are automatic, calculated from the interest-rate difference between the two accounts during the eligibility period, minus legal fees of up to 15% and administrative costs. Payouts were expected around July 2026, assuming no appeals.3NBC New York. Are You Eligible for Capital One’s $425 Million Settlement
The CFPB had filed its own action in January 2025, alleging Capital One cost consumers more than $2 billion in lost interest by removing the legacy product from its website, excluding those customers from marketing for the higher-yield account, and forbidding employees from proactively telling them about the better option.4CFPB. CFPB Sues Capital One for Cheating Consumers Out of More Than $2 Billion in Interest Payments The Bureau voluntarily dismissed that case with prejudice on February 27, 2025, after the private class settlement moved forward.5CourtListener. CFPB v. Capital One, National Association
Cash App (Block, Inc.) — Up to $120 Million in Refunds
On January 16, 2025, the CFPB issued a consent order requiring Block, Inc. to pay between $75 million and $120 million in refunds to Cash App users, plus a $55 million penalty to the Bureau’s victims relief fund. The Bureau found that Block used “woefully incomplete” investigation practices for unauthorized transactions and “intentionally shoddy” processes that discouraged users from seeking help.6CFPB. CFPB Orders Operator of Cash App to Pay $175 Million
Cash App offered no live telephone customer support for years, routing callers to pre-recorded messages. That vacuum let scammers post fake customer service numbers online, leading to widespread account takeovers. Block also challenged roughly 75% of peer-to-peer chargebacks between 2019 and 2023 without checking whether the underlying transactions were authorized, aiming to keep a favorable “win rate.”7CFPB. Block, Inc. Consent Order Block was separately ordered by state regulators to pay $80 million on January 15, 2025, for anti-money laundering compliance failures.8American Banker. CFPB Orders Cash App to Pay $175 Million for Fraud Failures
Other Open Consumer Settlements
Several smaller class action settlements had open claim windows or pending payouts in mid-2026. Check each one against your own account history.
- Bank of America ATM fees ($2.25 million): Redundant out-of-network balance-inquiry fees at 7-Eleven ATMs between May 2018 and November 2021. Former account holders had a claim deadline of June 29, 2026; current customers receive automatic credits.9USA Today. Bank of America Class Action Settlement: ATM Fees
- American Express antitrust ($17.5 million): Claims that Amex barred merchants from steering customers to lower-cost payment methods. Claim deadline was May 19, 2026.10Top Class Actions. 10 Class Action Settlements You Can Claim in May 2026
- USAA retained interest ($5 million): Allegations that USAA unlawfully retained interest collected on late fees.11ClassAction.org. Business and Finance Class Action News
- Albert Instant military lending ($5.2 million): Claims the fintech charged illegal fees on payday-style loans to active-duty military members.11ClassAction.org. Business and Finance Class Action News
- Discover merchant interchange (over $1.2 billion): A class settlement for merchants whose credit card transactions were misclassified. Claim deadline was May 18, 2026. This settlement compensates merchants, not cardholders.10Top Class Actions. 10 Class Action Settlements You Can Claim in May 2026
Government Enforcement Against Lenders and Fintechs
OneMain Financial — Multistate Bait-and-Switch Suit
On March 16, 2026, a bipartisan coalition of 13 state attorneys general sued OneMain Financial and several subsidiaries in the U.S. District Court for the Southern District of New York. The complaint alleges OneMain marketed loans without disclosing optional insurance and non-credit add-on products, then pressured borrowers into buying them at closing.12NY Attorney General. New York et al. v. OneMain Holdings Inc., Complaint
According to the complaint, employees pre-loaded loans with add-on products, rushed borrowers through 50-page closing documents, and controlled the computer screen so customers could not see what was being added. The products were financed upfront as single premiums, inflating loan balances and driving up total interest. An internal compensation structure allegedly rewarded employees for packing loans this way.13South Dakota Attorney General. Attorney General Joins Coalition Lawsuit Against OneMain Financial Maryland Attorney General Anthony G. Brown said OneMain charged consumers “hundreds of millions of dollars in unlawful hidden fees and interest.”14Maryland Office of the Attorney General. Attorney General Brown Sues OneMain Financial The suit alleges violations of the Consumer Financial Protection Act, the Truth in Lending Act, and state consumer protection laws, and seeks fee recovery, civil penalties, and an order barring the practices.
Discover Bank — $1.375 Billion in Penalties
The FDIC issued three enforcement orders against Discover Bank in April 2025 after finding the bank had misclassified millions of consumer credit cards as commercial cards for roughly 17 years. The misclassification pushed merchants into the highest interchange pricing tier, overcharging them by more than $1 billion.15FDIC. FDIC Announces Three Orders Against Discover Bank
Discover was ordered to distribute at least $1.225 billion in restitution to affected merchants and intermediaries, and to pay a $150 million civil money penalty to the U.S. Treasury. The Federal Reserve added a separate $100 million penalty against parent company Discover Financial Services, bringing the combined total to $1.375 billion.16FDIC. Discover Bank Amended and Restated Consent Order
Colony Ridge — $68 Million Land Sales Settlement
On February 10, 2026, the Department of Justice and the State of Texas announced a $68 million settlement with Colony Ridge Development, a seller-financed housing developer in Liberty County, Texas. The government alleged Colony Ridge ran a predatory bait-and-switch land sales scheme aimed at Hispanic borrowers, using misleading advertisements, misrepresentations about flooding risks, and loans issued without verifying whether buyers could afford them. Defaults and foreclosures followed at high rates.17Department of Justice. Civil Rights Division Secures $68M Settlement in Predatory Land Sales and Lending Lawsuit
The settlement requires Colony Ridge to invest $48 million in infrastructure ($18 million for drainage and $30 million for general improvements), pay $20 million for law enforcement, adopt ability-to-repay underwriting, and halt new residential development for direct-to-consumer sales for three years. It resolves both a December 2023 federal lawsuit filed by the DOJ and CFPB and a March 2024 state lawsuit filed by the Texas Attorney General.18Department of Justice. CFPB and United States v. Colony Ridge Development, LLC19CFPB. Colony Ridge Enforcement Action
Earned Wage Access Companies
On April 14, 2025, New York Attorney General Letitia James sued MoneyLion Inc. and DailyPay, Inc., alleging their earned wage access products are illegal payday loans in disguise. The complaint against MoneyLion says its “Instacash” product carries annual percentage rates often exceeding 350%, uses manipulative tipping prompts, and relies on aggressive automated debt collection to pull “tens of millions of dollars from working-class New Yorkers.”20NY Attorney General. People of the State of New York v. MoneyLion Inc., Complaint
Both companies dispute the characterization. DailyPay filed a separate action seeking a court declaration that its employer-integrated product is not a loan under New York law.21Mitchell Sandler. NYAG Lawsuits Against MoneyLion and DailyPay The proposed Stop Taking Our Pay (STOP) Act would explicitly categorize such advances as loans subject to New York’s 25% interest rate cap.22New Economy Project. Federal Judge Deals Major Blow to Predatory Fintech
FTC Refunds and Shutdowns
The Federal Trade Commission distributed more than $10.9 million to over 443,000 consumers in March 2026 who were harmed by Financial Education Services, which the agency called a pyramid scheme dressed up as a credit repair service. The FTC originally sued in 2022, alleging the company took $213 million from consumers through false credit-improvement promises and recruitment pressure.23FTC. FTC Sends More Than $10.9 Million to Consumers Harmed by Credit Repair Pyramid Scheme
In June 2026, the FTC returned nearly $3 million to 1,821 consumers deceived by a mortgage relief scheme run by Golden Home Services, Home Matters USA, and related companies. A federal court banned the operators from telemarketing and the debt relief business.24FTC. FTC Returns Nearly $3 Million to Consumers Deceived by Mortgage Relief Scheme The agency also halted a $100 million debt-relief scam in July 2025, securing a court order in the District of Arizona against “Accelerated Debt” and related companies accused of targeting seniors and veterans, promising 75% debt reductions, collecting illegal advance fees sometimes near $10,000, and impersonating banks and government agencies.25FTC. FTC Halts Illegal Debt Relief Operation
A Major Case to Watch: Prime Rate Price-Fixing
In October 2025, a proposed class action filed in the U.S. District Court for the District of Connecticut alleged that seven of the country’s largest banks conspired to fix prime interest rates on consumer and small-business loans. Normandin v. JPMorgan Chase Bank (Case No. 3:25-cv-01749) names JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, U.S. Bancorp, PNC Financial Services Group, and Truist Bank.26Bloomberg Law. JPMorgan, Bank of America Accused of Interest Rate Price Fixing
The plaintiffs claim the banks agreed to set prime rates at a fixed 300 basis points above the federal funds rate, which is then published as the Wall Street Journal Prime Rate. Because that number drives interest on credit cards and home equity lines of credit, the alleged collusion would have cost borrowers substantially over many years. The proposed class covers anyone who made a payment on a WSJ prime-indexed home equity line of credit since October 16, 2021. As of mid-2026, none of the defendant banks had publicly responded.
What Is Happening to the CFPB
The agency behind many of the actions above has been fighting for its own survival since early 2025. Acting Director Russell Vought attempted to shut the Consumer Financial Protection Bureau down in February 2025, declaring it closed and telling staff to stop work. A federal court blocked the move, but many employees remain on administrative leave.27Economic Policy Institute. Trump Administration Closes the CFPB
The legal battle has centered on National Treasury Employees Union v. Vought. In December 2025, Judge Amy Berman Jackson ruled the CFPB could not claim a “funding lapse” to sidestep a preliminary injunction and ordered the agency to request operating funds from the Federal Reserve. In January 2026, Vought complied by requesting $145 million while stating he disagrees with the court’s interpretation.28CourtListener. National Treasury Employees Union v. Russell Vought29Consumer Financial Services Law Monitor. CFPB Complies With Court’s Funding Order in NTEU v. Vought
The administration argues the CFPB’s funding mechanism, which draws from Federal Reserve earnings rather than congressional appropriations, is unlawful because the Fed has operated at a loss since 2022. That argument continues despite a 7-2 Supreme Court ruling in May 2024 upholding the CFPB’s funding structure as constitutional.30Norton Rose Fulbright. Supreme Court Rules CFPB Funding Structure Is Lawful The D.C. Circuit heard oral arguments in February 2026 and agreed to rehear the case en banc. The agency has signaled it will not prioritize enforcement in several areas, including Buy Now, Pay Later products. The acting head of enforcement resigned in June 2025, saying “the bureau’s current leadership has no intention to enforce the law in any meaningful way.”27Economic Policy Institute. Trump Administration Closes the CFPB
For consumers, the practical takeaway is that state attorneys general, the FTC, private class action lawyers, and other federal banking regulators have been carrying an increasing share of enforcement while the CFPB’s future is decided. Most of the settlements paying money to consumers right now originated with the Bureau or with state suits filed before the shutdown effort began. Watch claim deadlines carefully, and if you held any of the accounts named above during the eligibility periods, check the official settlement site or your account records before the window closes.