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Capital One is currently embroiled in a new legal dispute concerning the rewards points that many cardholders have earned but subsequently lost without adequate explanation. A class action lawsuit was initiated on May 7 in the US District Court for the Eastern District of Virginia, alleging that the bank improperly canceled credit card rewards for customers whose accounts were terminated, even in cases where the account closure was unrelated to any actions by the cardholder. This lawsuit was filed by Nikhil Navkal and NTech Consulting LLC on behalf of a wide array of cardholders nationwide.

The essence of the lawsuit is clear. Customers accrued rewards through regular purchases made with their Capital One cards, which were guaranteed by the bank's cardholder agreements. However, when accounts were closed—sometimes due to fraud or unauthorized activity unrelated to the cardholder—Capital One eliminated the rewards along with the account. The plaintiffs contend that the bank had no right to do so. They assert that even in cases where a cardholder might be deemed in default, which they claim does not apply to anyone involved in this lawsuit, Capital One still lacked the authority to retract rewards that had already been earned. The legal claims include breach of contract, unjust enrichment, and violations of the Equal Credit Opportunity Act, suggesting that the bank is misusing its policy language to reclaim rewards it was never entitled to.

The plaintiffs are advocating for three specific groups of customers to be represented under Case No. 3:26-cv-00308. The first group consists of Capital One cardholders nationwide who were not in default and lost their earned rewards after an account closure they did not instigate. The second group is a subclass from New York for customers who faced similar issues. The third group targets holders of the Spark Cash Plus business card, whose rewards were also unjustly eliminated. The legal team is led by five attorneys: Gregory S. Duncan, Daryl F. Scott, Joseph P. Guglielmo, Anjori Mitra, and Joseph S. Tusa.

In January 2025, Capital One faced another lawsuit due to significant service outages that left numerous customers unable to access their accounts or perform basic transactions for an extended period. This previous case highlighted concerns regarding the bank's operational reliability. The current lawsuit raises different yet equally critical questions about how Capital One manages customer relations when problems arise. As of this report, Capital One has not publicly addressed the lawsuit filed on May 7, and no court has yet ruled on the claims, which is typical at this stage of legal proceedings.

If you are a Capital One cardholder, including those with the Spark Cash Plus card, and your rewards were canceled following an account closure that you did not cause, you may be included in this lawsuit. The case specifically targets customers who were in good standing when their rewards were revoked. Further details on how to formally participate will likely be provided as the case progresses through the federal court system.