The CFPB claims Capital One misled customers about savings rates, costing them billions
McLean: The Consumer Financial Protection Bureau (CFPB) is taking Capital One to court. They say the bank misled customers about savings account interest rates, costing them over $2 billion.
According to the CFPB, Capital One confused customers by mixing up its “360 Savings” account with the newer “360 Performance Savings” account. They didn’t tell existing account holders about the better option and marketed both accounts in a way that made them seem similar.
The interest rates were a big deal. The CFPB pointed out that while the 360 Performance Savings rate jumped from 0.4% to 4.35% in just under two years, the 360 Savings rate stayed stuck at 0.3% for a long time.
Even though the 360 Savings account had a low rate, it was still advertised as a high-interest option. The CFPB claims Capital One tried to keep customers unaware of the better account by changing references on their website and not including them in marketing for the higher-yield account.
CFPB Director Rohit Chopra said, “The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts.” He emphasized that banks shouldn’t mislead people with false promises.
Capital One, however, disagrees with the allegations. They stated they marketed the 360 Performance Savings account clearly and widely, even on national TV. The bank expressed disappointment over the lawsuit, claiming it’s part of a pattern of last-minute legal actions.
