Jonathan Stempel
(Reuters) – Capital One on Tuesday was sued by the U.S. Consumer Financial Protection Bureau, accusing it of fraudulently defrauding customers of its flagship “high-interest” savings accounts of more than $2 billion in interest.
In a complaint filed in federal court in Alexandria, Virginia, the CFPB alleges that Capital One told depositors that its 360 savings account offered one of the “best,” “highest,” or “highest” interest rates in the nation. He promised, but said he had frozen interest rates at just 0.30. % even though deposit rates have increased nationwide.
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 very disappointed to see the CFPB continue its recent pattern of filing lawsuits at the 11th hour before a change of government,” 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 television, “with the simplest and most transparent terms in the industry,” and all of its 360 accounts offer great 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.
(Reporting by Jonathan Stempel in New York; Additional reporting by Michelle Price in Washington, DC; Editing by Louise Heavens, Chizu Nomiyama and Rod Nickell)
