Capital One has been accused by the CFPB of defrauding customers out of $2 billion
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The Consumer Financial Protection Bureau (CFPB) is suing Capital One, alleging that the bank illegally misled customers by not disclosing account options that paid higher interest rates.
The federal government’s consumer watchdog said Capital One’s practices cost millions of customers a collective $2 billion in interest payments.
Capital One’s corporate headquarters complex in McLean, Va. (J. David Ake/Getty Images/File)
In Tuesday’s complaint, CFBB accused Capital 1 of promising its 360 savings accounts the “highest,” “best” and “highest” interest rates in the country, but only reduced their rates by 0.30 percent as deposit rates rose. Nationwide.
CFBB also put 360 Savings in the dark when Capital 1 launched the 360 Performance Savings Account in 2019, which is the same except with a higher interest rate of 4.35% in January 2024.
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Capital One is said to have told branch staff not to proactively tell depositors to switch accounts or send them to the bank’s account switching department unless they ask if the switch is allowed.
Rohit Chopra, director of the Consumer Financial Protection Bureau (Anna Moneymaker/Getty Images/File)
“Banks shouldn’t be lured by promises people can’t keep,” CFPB director Rohit Chopra said in a statement.
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CFBB said Capital One stopped offering 360 savings to new customers when it introduced 360 Performance Savings, which now 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 Truth in Savings.
| Ticker | Security | last one | Change | change % |
|---|---|---|---|---|
| COF | CAPITAL ONE FINANCIAL CORP. | 190.68 | +5.96 |
+3.23% |
Capital One Financial Corporation
“We are deeply disappointed to see the CFPB continue its recent practice of filing eleventh-hour lawsuits before a change in administration,” Capital One said in a statement. “We strongly oppose their claims and will vigorously defend ourselves in court.”
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McLean, Based in Virginia The bank added that it had marketed the 360 Performance Savings Account widely, including on national television, in “the simplest and most transparent way in the industry”, and said the 360 accounts all offer great value.
Reuters contributed to this report.
