Capital One Offers Program Lawsuit, Cardholders Sue Over Unpaid Cashback Rewards—What You Need to Know 2026
Capital One faces a new class action lawsuit alleging the company failed to deliver promised cashback rewards through its Capital One Offers program. Filed January 27, 2026, in Virginia federal court, plaintiff Alan McNichols claims Capital One breached its contract by advertising cashback offers—typically credited within 45 days—but regularly failing to pay cardholders after they completed qualifying purchases. The lawsuit accuses Capital One of boosting profits by underpaying cardholders, violating consumer protection laws in Virginia and Connecticut. If you participated in Capital One Offers and didn’t receive promised rewards, here’s what this lawsuit means for you.
What Is the Capital One Offers Program Lawsuit About?
Plaintiff Alan McNichols filed the class action against Capital One Bank N.A., Capital One Shopping Holdings LLC, and Capital One Financial Corp. on January 27, 2026.
The lawsuit centers on Capital One’s Offers program—a feature available to Capital One credit cardholders that provides cashback rewards when customers shop at participating merchants. These offers typically promise cashback within 45 days of making eligible purchases.
According to the complaint, 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.”
McNichols alleges that Capital One advertised these cashback offers to encourage spending at specific merchants, but then failed to honor the deals after cardholders completed their purchases. The lawsuit claims this pattern of non-payment allowed Capital One to “report higher profits by underpaying cardholders in the payouts it had promised for the use of their cash.”
This isn’t Capital One’s first brush with cashback-related legal trouble. The company recently faced a separate Capital One 360 Savings account class action settlement over interest rate discrepancies, demonstrating a pattern of customers feeling shortchanged by the bank’s financial products.
What Legal Claims Does the Capital One Offers Lawsuit Make?
The lawsuit brings four separate legal claims against Capital One:
Breach of Contract: McNichols alleges Capital One entered into binding agreements with cardholders by advertising specific cashback offers. When cardholders completed qualifying purchases but didn’t receive the promised rewards, Capital One broke those contracts.
Breach of the Covenant of Good Faith and Fair Dealing: This legal doctrine requires parties to contracts to act fairly and not undermine the agreement’s purpose. The lawsuit claims Capital One violated this by promising rewards to drive spending, then failing to pay.
Breach of Quasi-Contract and Unjust Enrichment: Even without formal contracts, courts can require companies to pay for benefits they receive. McNichols argues Capital One benefited from increased merchant spending driven by cashback offers without providing the promised compensation.
Violations of Consumer Protection Laws: The lawsuit alleges Capital One violated the Virginia Consumer Protection Act and Connecticut Unfair Trade Practices Act by engaging in deceptive business practices through false advertising of cashback rewards.
McNichols demands a jury trial and requests declaratory and injunctive relief—meaning court orders requiring Capital One to change its practices—plus compensatory, treble, and punitive damages for himself and all class members.
Treble damages could triple the amount Capital One owes if the court finds the violations were willful or knowing under consumer protection statutes.
Who Qualifies for the Capital One Offers Class Action?
The lawsuit seeks to represent all Capital One cardholders who participated in the Capital One Offers program and didn’t receive promised cashback rewards.
While the complaint doesn’t specify exact class period dates, it covers cardholders who:
- Activated cashback offers through the Capital One Offers program
- Completed qualifying purchases at participating merchants
- Did not receive the cashback rewards Capital One promised within 45 days (or at all)
- Were located in Virginia or Connecticut during their participation
The class could potentially include thousands or tens of thousands of Capital One credit cardholders who relied on these offers when making purchases.
Similar cashback class action settlements in the financial services industry have resulted in millions of dollars in compensation when companies failed to deliver promised rewards.
What Is Capital One’s Response to the Lawsuit?
As of January 28, 2026, Capital One has not publicly responded to the lawsuit allegations.
The complaint was just filed on January 27, 2026, giving Capital One time to review the claims and formulate a legal response. Under federal court rules, Capital One typically has 21 days to file an answer or motion to dismiss.
Capital One will likely deny the allegations and may argue that:
- Cardholders failed to meet specific offer terms and conditions
- Technical issues or processing delays—not intentional non-payment—caused any missing rewards
- The company provided adequate dispute resolution processes for cardholders to claim missing rewards
- Arbitration clauses in cardholder agreements require individual arbitration rather than class action litigation
The outcome will depend heavily on what documentation plaintiffs can provide showing they qualified for offers but didn’t receive payments.
How Does This Compare to Other Capital One Lawsuits?
Capital One is currently defending multiple consumer class actions beyond the Offers program lawsuit.
The Capital One 360 Savings account lawsuit involved allegations that the bank kept interest rates artificially low on older savings accounts while offering much higher rates to new customers. A federal judge rejected Capital One’s initial $425 million settlement in November 2025, ruling it didn’t fairly compensate account holders who lost billions in potential interest.
That rejection signals courts are taking a hard look at Capital One’s treatment of existing customers versus new customers—a theme that resonates with the Offers program allegations.
Capital One also recently settled an influencer lawsuit alleging its shopping browser extension diverted affiliate commissions from content creators. That $4 million settlement received preliminary approval in December 2025.
The pattern across these cases: Capital One allegedly promises one thing to customers or business partners, then delivers something less valuable—whether lower interest rates, missing cashback, or stolen commissions.
What Should Capital One Cardholders Do Now?
If you participated in Capital One Offers and didn’t receive promised cashback:
Document everything. Save screenshots of the original offers, purchase receipts from qualifying merchants, and any communications with Capital One about missing rewards. This evidence will be critical if the case is certified as a class action.
Check your account statements. Review recent statements to verify whether promised cashback posted to your account. Capital One typically credits rewards within 45 days, but delays can occur.
Contact Capital One directly. Before any class action proceeds, attempt to resolve missing rewards through Capital One’s customer service. Document these conversations, including dates, representative names, and outcomes.
Monitor the case. As the lawsuit progresses, watch for class certification motions. If the court certifies a class, you’ll receive notice of your rights to participate, opt out, or object to any proposed settlement.
Don’t miss deadlines. If Capital One reaches a settlement, claim deadlines are typically firm. Missing a deadline means forfeiting compensation even if you’re eligible.
Many recent financial services settlements—like the 23andMe $50M data breach settlement have required claimants to file by specific deadlines or lose their rights to compensation.
What Comes Next in the Capital One Offers Litigation?
The lawsuit is in its earliest stages. Here’s what typically happens in consumer class actions:
Initial Response (30-60 days): Capital One will file either an answer to the complaint or a motion to dismiss arguing the lawsuit lacks legal merit.
Discovery (6-12 months): If the case survives dismissal, both sides exchange documents and information. Plaintiffs will seek Capital One’s internal records showing how many cardholders didn’t receive promised cashback.
Class Certification Motion (12-18 months): McNichols’ attorneys will ask the court to certify the case as a class action representing all affected cardholders. Capital One will oppose certification.
Settlement Negotiations or Trial (18-36 months): Most class actions settle before trial. If this case follows that pattern, Capital One may offer a settlement fund to resolve all claims. If no settlement is reached, the case proceeds to jury trial.
The timeline could extend several years before any resolution or compensation reaches cardholders.
Are There Other Active Capital One Legal Issues?
Beyond the Offers program lawsuit, Capital One continues defending its rejected 360 Savings settlement.
U.S. District Judge David Novak’s November 2025 rejection sent both parties back to negotiate a better deal. Consumer advocates hope this results in substantially larger payouts, but it also means payments originally expected in early 2026 remain delayed indefinitely.
Capital One also faces ongoing scrutiny from the Consumer Financial Protection Bureau, which sued the company in January 2025 over allegations it cheated consumers out of billions in interest. Though the CFPB dropped that case following a leadership change, state attorneys general continue monitoring Capital One’s practices.
Last Updated: January 28, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
If you participated in Capital One Offers and didn’t receive promised cashback, document your evidence now. As this class action develops, maintaining detailed records of offers, purchases, and communications with Capital One will be essential to recovering compensation.
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.
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