The CFPB accuses Capital One of cheating customers out of over $2 billion in interest on savings accounts
Alexandria: So, here’s the scoop. Capital One just got hit with a lawsuit from the US Consumer Financial Protection Bureau. They’re accused of shortchanging customers who had their “high interest” savings account, missing out on over $2 billion in interest payments.
The CFPB claims that Capital One promised customers top-notch interest rates for their 360 Savings account. But instead of delivering, they froze the rate at a measly 0.30% while rates were climbing everywhere else.
To make matters worse, when Capital One rolled out the 360 Performance Savings account in 2019, which offered a much better rate, they didn’t bother to inform existing customers. That new account could hit 4.35% by January 2024!
It gets even sketchier. The CFPB says Capital One told its branch staff not to mention the option to switch accounts unless customers specifically asked. That’s just not cool.
CFPB Director Rohit Chopra didn’t hold back, saying banks shouldn’t lure people in with promises they can’t keep. Capital One, on the other hand, is pushing back hard, claiming they’ve done nothing wrong and will fight this in court.
They argue that they’ve marketed the new account widely and that all their accounts offer competitive rates. But the lawsuit is serious, seeking fines and restitution for breaking consumer protection laws.
Capital One is a big player in the banking world, with a ton of deposits and assets. A trial is set for July 2025 in Alexandria, so this drama is far from over.
Analysts think this lawsuit won’t mess with Capital One’s plans to buy Discover Financial Services, but we’ll have to wait and see how it all plays out.
