New York, Jan 13, 2026, 18:54 EST — Trading after hours.
- Capital One shares slipped 0.7% in after-hours trading, extending Monday’s steep decline
- Trump’s plan to cap credit-card rates at 10% for one year has shaken lenders that rely heavily on card business
- On Monday, a judge granted preliminary approval to Capital One’s updated $425 million settlement for depositors
Capital One Financial shares dipped 0.7% to $231.41 in after-hours trading Tuesday, as investors weighed Washington’s ongoing efforts to cap credit-card rates and the potential hit to lenders’ earnings.
The stock’s retreat is significant given Capital One’s heavy reliance on credit cards, turning what was once a campaign soundbite into a topic executives now tackle during earnings calls. The next trigger is just around the corner: Capital One’s quarterly results come out next week.
President Donald Trump proposed a 10% cap on credit-card interest rates for one year beginning Jan. 20, though he did not specify how lenders would be forced to follow the limit. 1
JPMorgan Chase executives sounded alarms Tuesday, saying the proposal would hurt consumers and push banks to tighten credit. CFO Jeremy Barnum labeled it “very bad for consumers” and “very bad for the economy.” According to the Federal Reserve, the average credit-card interest rate stood at 20.97% in November, Reuters reported. 2
Prices have already reflected the uncertainty. On Monday, Capital One and other consumer finance stocks dropped between 8% and 11%. UBS analysts noted that imposing a cap would require an act of Congress, considering the legal hurdles an executive order would probably encounter. 1
On Monday, a federal judge gave preliminary approval to Capital One’s updated $425 million class action settlement. The deal addresses claims from depositors who argued they were underpaid on interest. 3
The settlement will compensate 360 Savings account holders and obliges Capital One to raise their interest rate to align with the 360 Performance Savings rate, a perk depositors’ attorneys pegged at roughly $530 million in addition to the cash payout. “This is a great result for the class,” said Philip Black, a lawyer representing the depositors, in an email. 3
New York Attorney General Letitia James said she will drop her separate lawsuit if the revised settlement secures final approval. A judge scheduled a hearing for April 20. Reuters noted that 360 Performance Savings accounts currently offer a 3.3% yield, reflecting recent drops in benchmark short-term rates. 3
The main threat for COF bulls remains the possibility that cap talk escalates into real legislation or a tangled regulatory battle. That could cap the group’s upside and push lenders to reassess pricing, rewards, and credit limits. The depositor deal isn’t set in stone either—the court could still shoot it down, and the bank’s savings franchise has become a key part of the investor debate.
What’s certain is Capital One will report its fourth-quarter 2025 earnings around 4:05 p.m. ET on Jan. 22, followed by a conference call at 5:00 p.m. ET. Investors are expected to dig into exposure, timing, and margin sensitivity—especially if any cap moves beyond the usual social media chatter. 4
