The Consumer Financial Protection Bureau (CFPB) is suing Capital One, alleging the bank misled customers about its high-interest savings accounts. The CFPB says Capital One allegedly cheated customers out of more than $2 billion in interest payments.
The lawsuit claims Capital One froze the interest rate on its “360 Savings” accounts, even as rates rose nationally while introducing a new product, “360 Performance Savings,” with significantly higher rates. The CFPB said Capital One failed to notify existing account holders about the new product and barred employees from proactively sharing information about the higher-paying account.
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The agency is seeking civil penalties and financial relief for impacted consumers. Capital One denied the allegations and said it plans to defend itself in court.
The bank emphasized its products offered competitive rates and were available to all customers without restrictions.
Currently, “360 Savings” accounts offer an interest rate of just under 0.50%, while “360 Performance Savings” accounts offer about 3.74%. At one point, the difference between the two rates was as high as 14 times.
The lawsuit comes as the banking giant faces heightened scrutiny ahead of President-elect Donald Trump’s inauguration. Analysts noted that similar litigation proceeded under Trump’s first term and believe this case could move forward as well. The CFPB emphasized that financial institutions must remain transparent in their offerings and avoid misleading customers about potential interest gains.
