What You Should Know About the Capital One Data Breach
The Capital One data breach occurred on March 22, 2019 and was detected on July 19, 2019. The breach stemmed from a "misconfigured" firewall that allowed access to its credit card application database based on a bug in a Capital One web application firewall. The compromise of this server allowed the theft of data submitted to Capital One applications from 2005 through March 2019. The stolen data included approximately 140,000 Social Security numbers and linked bank account numbers, credit card numbers, CVV codes, and expiration dates for 1 million consumers. Additionally, data including 77 million SSNs of other consumers, 1 million SSNs of Canadian social insurance numbers and 1.5 million ssns of customers who applied but were not approved for a Capital One credit card; 368 , 000 bank accounts, 28,000 bank account numbers, 190,000 Social Security numbers, 1,000,000 social insurance numbers of Canadian customers as well as certain data on customers who applied for a credit card but were not approved, report alerts, addresses, email addresses, phone numbers, dates of birth, and self-reported income. Further, it was determined that public records for certain individuals were compromised. The stolen data included consumers who applied for a new Capital One credit card (mainly credit card rewards program) through an online form. Data on customers who applied but were rejected in the past occurred too.
An Overview of the Capital One Class Action Lawsuit
Following the breach, class action lawsuits were filed across the country. In addition to the MDL (the lead case of which was filed in the Eastern District of Virginia), a number of other class actions were filed in state and federal courts, including the Northern District of Illinois, Southern District of New York, the Middle District of Florida, the Northern District of California, the Southern District of Texas, the Central District of California, the Southern District of West Virginia, the District of Colorado, the Southern District of California, and the District of Arizona.
In August 2019, the parties filed a joint stipulation of class action settlement agreement with the United States District Court for the Eastern District of Virginia. On October 11, 2019, the Court preliminarily approved the class action settlement and set a final approval hearing for January 30, 2020. It is estimated that the settlement will affect approximately 74 million individuals. Each class member will be making a claim for monetary currency or credit monitoring costs. A final approval hearing will take place January 30, 2020, at 2:00 PM, ET in Alexandria, Virginia before Chief Judge Claude M. Hilton.
Am I Eligible to Participate in the Class Action?
Individuals are eligible for relief under the class action lawsuit if they experienced direct harm resulting from the data breach. Specific eligibility requirements, such as being a customer during a defined time period, have yet to be established by the court. The proposed class includes Capital One cardholders both for consumer and business credit cards and the 2015-2019 Capital One acquisition cards, but exclude anybody who was or is an officer, director, employee, or agent of Capital One, as well as individuals involved in the administration of this matter.
Generally, if you have a credit card or bank account with Capital One (including former or current credit card holders or bank account customers) then you are eligible for relief under the class action lawsuit if you are able to show that you were harmed in some way as a result of the breach and were a customer during this timeframe.
How to Download a Claim Form
A claim for the Capital One class action lawsuit can be obtained at www.CapitalOneDataBreachSettlement.com. There, class members can start the process of filling out the claim. The process is relatively simple and can be completed online. The main action is to fill out an online form with your name, address, phone number, etc.
For the identity theft portion of the settlement, class members must provide details of the fraud or misuse of identity. Alternatively, class members can also claim an electronic or cash payment. In so doing, class members will have to agree to release Capital One of any claims for the data breach. Though the release is in the settlement, it is explained on the claim form and it should be read carefully before signing.
For the credit monitoring section of the settlement, class members will have to provide a choice of which level of credit monitoring they would like. As well, this section of the claim form will allow you to claim identity theft insurance as part of the settlement as well. Finally, class members can also claim reimbursement on out of pocket losses. Importantly, the settlement does limit recoverable times of 48 hours maximum for lost wages, or 16 hours maximum for time spent accessing or resolving fraudulent charges or withdrawing money from an account.
Guide to Completing the Capital One Claim Form
Once you’ve confirmed your eligibility for the Capital One class action lawsuit settlement, the next step in the claims process is filling out the claim form.
The claim form is fairly straightforward to fill out. In addition to your contact information, you will also need to provide a description of the violation, including an approximate date and date range of when it occurred. The important part is including as much information as possible so as to not limit your potential recovery.
You will also be required to submit documents such as bank account or invoice statements to help confirm your claim. Be sure to include with your claim form a brief written explanation describing each violation with at least one specific incident . Take care to attach supporting documents to the claim form itself, because anything scanned or e-mailed to the settlement administrator will be problematic, as it can be hard to keep track of and difficult to match up with claims.
Other aspects of the Capital One case are more complicated. If you have not yet closed out all of your accounts, do not close them. That will cause infinitely more problems in the future. Also, if you’re dealing with the Capital One class action lawsuit settlement, stay in close contact with any confirmed class counsel so that you are not excluded from the settlement inadvertently.
Be aware of deadlines. May 30, 2016 is the deadline for filing a claim with the settlement administrator in order to receive a distribution from the Capital One class action lawsuit settlement. You may even still have time to opt out, but that will need to be done by April 12 of 2016.
What to Expect and Potential Settlement Amounts
For those who decide to join the class action lawsuit, the court’s decision will likely provide some form of compensation, in addition to any free credit monitoring already in place. Potential outcomes of the class action lawsuit include cash payments, free credit monitoring, waiver of fees and even an overhaul of Capital One’s security practices. However, it is important to understand that participation in this class action lawsuit means participants agree to be bound by the ultimate outcome of the lawsuit, which may be less or more than what is ultimately paid out by the company upon reaching settlement or judgment.
If a settlement is reached or awarded, each member of the class of affected persons will receive a payout. But the amount each person receives is uncertain because the payment may depend on how many persons opt in or end up participating. Additionally, class members may also receive free credit monitoring as part of the class settlement or judgment. Capital One currently offers 12 months free credit monitoring through its partner, TransUnion, as a direct consequence of the data breach. Through the class settlement or judgment, participants may be able to receive an extended period for no charge. The terms for these extensions are subject to negotiations or litigation in the class action if a case is not settled out of court.
Common Questions
I already signed up for credit monitoring per Capital One’s offer. Do I still need to submit a claim?
Yes, the two offers are separate. You must file a valid, timely claim if you want to participate in the settlement and be eligible for benefits by the court-approved deadline.
Does the settlement cover only non-U.S. citizens?
The settlement covers all entities that had a Capital One account. The settlement will provide compensation to those who had accounts overseas that were affected by the data breach.
How long do I have to file a claim?
Under the terms of the settlement, individuals filing a claim have until July 22, 2019 to do so. Because of the length of time between the data breach and the settlement, the claims process has been extended to allow as many affected consumers as possible the opportunity to file a claim. The goal is to allow enough time for Class members to receive notice about the settlement and provide a response .
I received a postcard in the mail that I need to respond to. Do I need to fill out the postcard form or can I just file a claim on the website?
The form in the postcard is a Pre-Approval Form. This form is not a necessary requirement of filing a claim. You can file a claim via the internet or by printing the claim form and mailing your claim. This form is designed to help expedite a claim.
How long until I receive my compensation?
After the judge approves the settlement and determines the approved amount for claims, distribution of funds to the approved claimants can begin. This could potentially take up to 180 days.
Why should I file a claim as an individual instead of as part of a group claim?
Filing as an individual claimant allows you greater flexibility. This will allow you to better maintain control of your claim. Additionally, the court requires each individual to file their own claim. Group claims tend to be more complicated and therefore take longer.