Capital One Hit With Class Action Over Allegedly Unpaid Cashback Rewards

Capital One got hit with a class action in January 2026 claiming the company stiffed customers on cashback rewards they earned. Plaintiff Alan McNichols says he claimed a Capital One Offer—those cashback deals you see when you log into your account—but never got paid. Now he’s suing on behalf of anyone else who got the same treatment.

Here’s what’s happening and what you need to know.

What’s This Lawsuit Actually About?

The lawsuit says Capital One promised cashback rewards through its Capital One Offers program, then failed to deliver.

According to the complaint filed as McNichols v. Capital One Bank N.A., Case No. 1:26-cv-00145 in U.S. District Court for the Eastern District of Virginia, the bank told customers they’d receive their cashback within 45 days of making a purchase. McNichols claims he activated an offer, made the required purchase, and then—nothing.

The lawsuit alleges this wasn’t a one-time glitch. “Capital One regularly failed to provide cardholders with the payout that they had been promised in the offer after the cardholders made purchases in reliance on the offer,” ClassAction.org

 according to the complaint.

The case was filed in January 2026 and is still in its early stages.

How Capital One Offers Are Supposed to Work

Capital One Offers is a rewards program built into your online account or mobile app.

You browse available deals—things like “5% cashback at Target” or “$10 back on a $50 purchase at Home Depot.” You activate the offer, use your Capital One card to make the purchase, and the cashback gets credited to your account.

The system relies on you following the rules. Buy at the right merchant. Spend the minimum amount. Use the right card.

But McNichols argues he did everything right—and Capital One still didn’t pay.

What Legal Claims Is McNichols Making?

The lawsuit accuses Capital One of multiple violations.

First, breach of contract. When you activate an offer and make a qualifying purchase, that creates a contract. The bank promises cashback. You complete your end. If they don’t pay, that’s a breach.

Second, breach of the covenant of good faith and fair dealing. This means Capital One allegedly didn’t act in good faith when administering the Offers program—it made promises it didn’t intend to keep.

Third, unjust enrichment. McNichols argues Capital One benefited from customers using their cards based on cashback promises but kept the money for itself.

Finally, violations of the Virginia Consumer Protection Act and Connecticut Unfair Trade Practices Act. These laws prohibit deceptive business practices. The lawsuit claims Capital One’s failure to deliver on cashback promises amounts to consumer fraud.

Why This Matters If You Use Capital One Offers

Cashback rewards aren’t just marketing fluff. They influence spending decisions.

The lawsuit alleges “Capital One was able to report higher profits by underpaying cardholders in the payout it had promised for the use of their cash.” ClassAction.org

Think about it. You see a 10% cashback offer at a restaurant. You activate it. You charge your meal. You’re counting on that money coming back.

If Capital One pockets those rewards instead of crediting your account, you paid full price under false pretenses. That’s real money out of your wallet—and potentially millions across all affected customers.

Similar issues have cropped up in other credit card class actions where banks allegedly misled consumers about rewards programs or failed to honor advertised benefits.

Who Can Join This Class Action?

McNichols wants to represent a nationwide class and a Connecticut subclass.

The nationwide class includes anyone who activated a Capital One Offer and didn’t receive the promised cashback after making a qualifying purchase.

The Connecticut subclass specifically covers residents of Connecticut who were denied their cashback rewards.

You don’t need to file anything yet. The case hasn’t been certified as a class action. That’s the legal process where a judge decides if it can proceed on behalf of all affected customers or just McNichols individually.

What Is the Current Case Status?

As of January 2026, the lawsuit is brand new.

Capital One hasn’t filed a response or moved to dismiss. No settlement has been reached. There’s no claims administrator, no settlement website, no deadline to submit a claim.

This is normal for a case that just got filed. These lawsuits typically take months or years to resolve.

What Compensation Could You Get?

The complaint requests compensatory damages, treble damages (triple damages allowed under consumer protection laws), punitive damages, and injunctive relief.

Compensatory damages would reimburse you for unpaid cashback rewards. If you were owed $50 and didn’t get it, you’d receive $50.

Treble damages could multiply that amount by three under certain state consumer protection statutes.

Punitive damages punish Capital One for alleged wrongdoing and deter future misconduct.

Injunctive relief would force Capital One to fix its Offers program—actually pay out the rewards it promises.

But no specific dollar amounts have been announced. Everything depends on how the case resolves and how many people file claims.

What You Should Do Right Now

If you activated Capital One Offers and didn’t receive promised cashback, document it.

Check your account statements. Look for the purchases you made after activating offers. Compare them to the cashback you actually received. Screenshot your Offers history if possible.

Keep track of the case using the case number: 1:26-cv-00145. Class action tracking sites like TopClassActions.com and ClassAction.org post updates when settlements are reached or when major rulings happen.

Don’t fall for scam websites claiming to process Capital One cashback claims. No legitimate settlement exists yet.

When Do You Need a Lawyer?

Most class action participants don’t hire their own attorney.

The class counsel—McNichols’ lawyers—represent everyone. If there’s a settlement, you’ll get a notice explaining how to file a claim.

You only need your own lawyer if you want to opt out and file your own lawsuit, or if you have unusual circumstances that don’t fit the standard class claims.

For most people, waiting for settlement information is the simplest path. You can also explore other consumer fraud lawsuits to understand how these cases typically unfold.

What Happens Next

Capital One will likely file a motion to dismiss, arguing McNichols hasn’t stated a valid legal claim.

McNichols’ lawyers will oppose that motion. The court will rule.

If the case survives dismissal, both sides exchange evidence during discovery. Then comes class certification—the hearing where the judge decides if this lawsuit can proceed as a class action.

Many cases settle before trial. If Capital One wants to avoid years of litigation and negative publicity, a settlement could emerge within 12 to 18 months.

If no settlement happens, the case goes to trial.

Either way, affected customers will receive notice if there’s a settlement or if they need to take action.

Last Updated: January 27, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice.

If you believe Capital One denied you cashback rewards you earned, keep documentation and monitor this case. When a settlement is announced, make sure you file your claim before the deadline to receive any compensation you’re entitled to.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah