Capital One was charged Tuesday by the U.S. Consumer Financial Protection Bureau, which alleges the bank illegally defrauded customers of its flagship “high-interest” savings accounts out of more than $2 billion in interest.
In a complaint filed in federal court in Alexandria, Virginia, the CFPB alleges that Capital One offers depositors one of the “best”, “highest”, or “highest” interest rates in the nation on its 360 savings accounts. He promised to do so, but said he had frozen interest rates. Even though deposit interest rates have increased nationwide, they are only 0.30%.
The CFPB also said Capital One kept 360 Performance Savings account depositors in the dark when it opened the 360 Performance Savings Account in 2019. This account was identical except that it applied a significantly higher interest rate, reaching 4.35% in January 2024.
Capital One allegedly instructed branch employees not to proactively tell depositors whether they could make account changes or to send depositors to the bank's account exchange department unless they asked for permission to make account changes. Ru.
“Banks should not deceive people with promises they cannot keep,” CFPB Director Rohit Chopra said in a statement.
According to the CFPB, Capital One stopped offering 360 Performance Savings to new customers when it introduced 360 Performance Savings, but the bank's website says it now has an annual yield of 3.8%.
Tuesday's lawsuit seeks civil penalties, restitution and other relief for violations of the Consumer Financial Protection Act of 2010 and the Truth in Savings Act.
“We are extremely disappointed that the CFPB continues its recent pattern of filing lawsuits at the 11th hour ahead of a change of administration,” Capital One said in a statement. “We strongly disagree with their claims and intend to vigorously defend them in court.”
The McLean, Virginia-based bank sells its 360 Performance Savings Account widely, including on national TV, “with the simplest and most transparent terms in the industry,” and all of its 360 accounts offer competitive interest rates. He added that he is doing so.
Capital One is one of the largest banks and credit card companies in the United States, with $353.6 billion in deposits and $486.4 billion in assets as of September 30, 2024.
A trial in the national private lawsuit over 360 savings accounts is scheduled for July 2025 in Alexandria Court.
The CFPB lawsuit should not affect Capital One's planned $35.3 billion acquisition of credit card rival Discover Financial Services, TD Cowen analyst Jarrett Seiburg said in a research note. said.
The case is CFPB v. Capital One Financial Corp et al., U.S. District Court, Eastern District of Virginia, No. 25-00061.
