Capital One is being sued by the CFPB for allegedly defrauding customers out of $2 billion
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The Consumer Financial Protection Bureau (CFPB) is suing Capital Onealleged that the bank illegally misled customers by not informing them of account options that paid higher interest.
The the federal government's consumer watchdog Capital One's practices claim that millions of customers are missing out on $2 billion in interest payments.
Capital One corporate headquarters complex in McLean, Washington. (J. David Ake/Getty Images/File)
In a complaint filed Tuesday, the CFPB accused Capital One of promising depositors that its 360 Savings account offered one of the nation's “best,” “best” and “highest” interest rates, but froze their rate at just 0.30% even as savings rates rose. blamed. nationwide.
The CFPB also said that Capital One kept 360 Savings depositors in the dark when it launched its 360 Performance Savings account in 2019, which was the same except for a significantly higher interest rate, which reached 4.35% in January 2024.
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Capital One allegedly told branch employees not to tell depositors they could switch accounts or send depositors to the bank's account conversion department unless they asked if the conversion was allowed.
Rohit Chopra, director of the Consumer Financial Protection Bureau (Anna Moneymaker/Getty Images/File)
“Banks shouldn't mislead people with promises they can't keep,” CFPB Director Rohit Chopra said in a statement.
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The CFPB said Capital One stopped offering 360 Savings to new customers and now offers 360 Performance Savings, which earns 3.8% annually, according to the bank's website.
Tuesday's lawsuit seeks civil penalties, restitution and other remedies for violations of the Consumer Financial Protection Act of 2010 and the Truth in Savings Act.
| Ticker | Security | End | To change | Change % |
|---|---|---|---|---|
| COF | CAPITAL ONE FINANCIAL CORP. | 190.68 | +5.96 |
+3.23% |
Capital One Financial Corp
“We are very disappointed to see the CFPB continue its recent filing pattern eleventh hour cases on the eve of a change in administration,” Capital One said in a statement: “We strongly disagree with their claims and will vigorously defend ourselves in court.”
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McLean, Based in Virginia the bank added that it has marketed its 360 Performance Savings account widely, including on national television, with “the simplest and most transparent terms in the industry,” and that all of its 360 accounts offer great rates.
Reuters contributed to this report.
