The Consumer Financial Protection Bureau (CFPB) has initiated a lawsuit against Capital One and its parent company, Capital One Financial Corp.
This legal action addresses allegations that the bank deceived millions of consumers, leading to over $2 billion in lost interest payments from their savings accounts.
According to the CFPB, Capital One promoted its “360 Savings” account as offering one of the highest interest rates in the nation. However, despite rising national interest rates, the bank allegedly froze the interest rates for these accounts at a low 0.30%, while a nearly identical new product, “360 Performance Savings,” launched in early 2022, offered substantially higher rates—peaking at 4.35% by January 2024. This newer account, while available, was not adequately disclosed to 360 Savings accountholders, effectively keeping them in the dark and depriving them of potential earnings.
CFPB Director Rohit Chopra emphasized the agency’s stance on the matter: “The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts. Banks should not be baiting people with promises they can’t live up to.”
This lawsuit underscores the CFPB’s commitment to ensuring fairness in the banking sector and its readiness to hold financial institutions accountable. The bureau seeks not only to stop Capital One’s allegedly unlawful practices but also to provide redress for affected consumers and impose civil money penalties, which would contribute to the CFPB’s victims relief fund.
Capital One, a major national bank with over $480 billion in assets, previously acquired online bank ING Direct USA in 2012, rebranding it as “360 Savings.” The bank has been accused of using its significant market presence to maintain a two-tier system that favoured newer depositors at the expense of existing ones, who were left with inferior interest rates without proper notification of better options.
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