Capital One Class Action Lawsuit Over Forfeited Rewards
A new class action lawsuit, NTech Consulting LLC and Nikhil Navkal v. Capital One, N.A., was filed on April 15, 2026, in the Eastern District of Virginia. The suit alleges that Capital One systematically denies customers the credit card rewards they have rightfully earned by closing accounts through no fault of the cardholder and then forfeiting the accumulated balances.
The central argument of the lawsuit focuses on what the plaintiffs call a deceptive rewards cancellation policy. The plaintiffs claim that Capital One unilaterally closes accounts for reasons other than customer default, such as “atypical usage or when a credit card has been subject to fraud or unauthorized use. It then refuses to allow the redemption of any earned points or cash back. This practice is framed as a breach of contract.
The lead plaintiff’s experience highlights the high stakes of these account “shutdowns.” Nikhil Navkal, a Spark Cash Plus cardholder, had reportedly earned a significant $8,000 spend bonus. He claims that Capital One closed his account in July 2025 citing inconsistent usage and subsequently refused to honor the $8,000 bonus or the cash back earned on his final purchases. This type of forfeiture is exactly what the Consumer Financial Protection Bureau warned against in a recent circular regarding “bait-and-switch” rewards tactics, the filing says.
The lawsuit seeks to represent a national class of individuals whose accounts were closed while not in default and who lost their rewards as a result. There are also specific subclasses for Spark Cash Plus users and New York residents, the latter of which relies on a state law that supposedly mandates a 90-day window to redeem rewards after an account is closed. You can see the full complaint here. The law firm representing the plaintiffs is encouraging affected consumers to join.
Earlier this year Capital One agreed to a $425 million settlement to resolve a class-action lawsuit that accused the bank of misleading customers about interest rates tied to its savings accounts.
