Capital One class action alleges canceled rewards at account closure

On May 11, 2026, Misty Loiacano of Azusa, California, filed a class action lawsuit against Capital One, N.A. in the Superior Court of California for Los Angeles County. The complaint accuses the bank of canceling cash-back rewards cardholders had already earned, then closing their accounts with only a form letter citing unspecified activity.

The lawsuit, Loiacano v. Capital One, N.A. (case number 26STCV14983), seeks to represent a nationwide class of cardholders who allegedly lost rewards after Capital One closed their accounts without cause.

What the lawsuit claims happened

Loiacano held a Capital One QuicksilverOne Rewards card promising 1.5% unlimited cash back on every purchase. By her account, she paid the $39 annual fee and built up a rewards balance under the terms of her cardholder agreement.

In or around August 2024, Capital One allegedly closed her account with no advance notice. Loiacano says she had not defaulted or violated any term of her agreement. After the closure, the bank refused to pay her accumulated rewards or the rewards she had earned in the weeks before the shutdown, by her telling.

Loiacano says she received no written notice from Capital One explaining the closure. Other cardholders in similar situations get a form letter citing "activity inconsistent with typical customer account usage" as the reason, the suit claims.

Why the complaint says the contract contradicts the policy

The cardholder agreement reserves the right to disqualify a cardholder only in cases of fraud, abuse of program privileges or violation of the terms, the complaint notes. A separate provision says Capital One "may apply your rewards balance to any credit balance owed" when an account closes, with any positive balance refunded by check.

If Capital One wanted to keep rewards in any other situation, the contract had to say so, the lawsuit contends. Because the agreement spelled out specific grounds for forfeiture and the bank's grounds were not among them, the lawsuit argues the cancellation breached the contract.

The alleged financial incentive

Every time someone uses a Capital One card, the bank collects an interchange fee from the merchant, typically 2% to 3% per transaction. Those fees help fund rewards programs, the lawsuit alleges. By closing accounts and canceling the rewards, Capital One kept the interchange revenue while avoiding the rewards payout the lawsuit says it owed. Capital One recognized $9 billion in customer rewards expense in 2024.

A pattern flagged by federal regulators

The lawsuit cites 18 complaints filed with the Consumer Financial Protection Bureau (CFPB) by Capital One cardholders nationwide, with reported losses ranging from $18 to $7,000. In December 2024, the CFPB issued a circular identifying issuers' practice of canceling earned rewards as potentially unlawful, unfair and deceptive when revocation rests on hidden or vague conditions.

The complaint also alleges Capital One's form letter violates the Equal Credit Opportunity Act (ECOA), a 1974 federal law requiring lenders to give specific written reasons within 30 days of an adverse action.

The legal claims

The class action suit brings five claims against Capital One, all tied to the alleged cancellation of earned rewards:

• Breach of contract and the implied covenant of good faith and fair dealing, based on the bank's alleged failure to honor its own agreement
• Unjust enrichment, pleaded as an alternative if the contract claims do not prevail
• California Business and Professions Code Section 17200, the state's Unfair Competition Law
• California Business and Professions Code Section 17500, the state's False Advertising Law
• ECOA and Regulation B, the federal requirement to give specific reasons for adverse action

What the lawsuit means for Capital One cardholders

The case is in its early stages. There is no settlement, no claims process and no money available at this time. The complaint asks the court to certify a nationwide class, award damages, order Capital One to refund or reinstate canceled rewards and permanently bar the bank from canceling rewards tied to non-default account closures.