Capital One Hit with Class Action Lawsuit Over January 2025 Service Outage

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Capital One faces a proposed class action lawsuit following a three-day service outage earlier this month, which allegedly left thousands of customers unable to access the funds in their bank accounts.

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The 16-page lawsuit against Capital One says the bank began experiencing a “service disruption” on January 15, which, according to an email notice to customers, was caused by a technical issue with one of its service providers. Per the suit, the outage continued through the evening of January 18 and caused delays in processing direct deposits, electronic payments and transfers.

The case contends that because the system outage coincided with the mid-month pay period, accountholders were left “in a difficult position” without access to their paychecks.

“Many struggled to pay for essential needs such as food, rent, electricity, and gas,” the complaint shares. “Additionally, the inability to pay household bills led to the accrual of late fees, further compounding the financial strain.”

The filing claims that Capital One breached its duties to customers by denying them access to their funds for a prolonged period.

In addition, Capital One represents that funds made by electronic direct deposit, cash deposit or wire transfer will be available to consumers on the same business day, the suit states. The bank breached its contract with customers by failing to make good on this promise during the outage, the case alleges.

The plaintiff, a California resident, claims he was unable to access the $280 he transferred to his Capital One checking account for the duration of the system outage. The man was apparently left without access to financial resources of any kind because he had transferred all his available funds to his then-inaccessible Capital One account, the complaint says.

“[The plaintiff] had no choice but to wait until the outage was resolved to regain access to his funds,” the filing relays.

The lawsuit looks to represent anyone in the United States who held a Capital One account and was denied access to it or their funds starting January 15, 2025.

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