itstargetnews
Don Luskin, CIO of Trendmacro, weighs in on DOGE’s calls to cut bank regulators, the economic impact of mass deportations, and housing affordability.
The Consumer Financial Protection Bureau (CFPB) is suing Capital Onealleging that the bank illegally misled customers by failing to notify them of account options that paid higher interest rates.
The federal government consumer watchdog claims that Capital One’s practices resulted in millions of customers missing out on a collective $2 billion they could have made in interest payments.
Capital One’s corporate headquarters complex in McLean, Virginia. (J. David Ake/Getty Images/File)
In a complaint filed Tuesday, the CFPB accused Capital One of promising depositors that its 360 savings account provided one of the “best,” “best” and “highest” interest rates in the country, but froze the its rate at just 0.30% even as deposit rates rose. at the national level.
The CFPB also said Capital One kept 360 Savings depositors in the dark when, in 2019, it launched the 360 Performance Savings Account, which was identical except for carrying a substantially higher interest rate than it reached 4.35% in January 2024.
JUDGE DETAILS ATTEMPT TO RECOVER APPROXIMATELY $750 MILLION BITCOIN HARD DRIVE FROM ABORDERIA
Capital One allegedly told branch employees not to proactively tell depositors they could switch accounts or send them to the bank’s account conversion unit unless they asked if conversions were allowed.
Rohit Chopra, director of the Consumer Financial Protection Bureau (Anna Moneymaker/Getty Images/File)
“Banks shouldn’t be screwing people over with promises they can’t keep,” CFPB Director Rohit Chopra said in a statement.
The CFPB said Capital One stopped offering 360 Savings to new customers when it introduced 360 Performance Savings, which now yields 3.8% annually, according to the bank’s website.
Tuesday’s lawsuit seeks civil penalties, restitution and other remedies for violations of the Consumer Financial Protection Act of 2010 and the Truth in Savings Act.
| Ticker | security | last | change | % change |
|---|---|---|---|---|
| COF | CAPITAL ONE FINANCIAL CORP. | 190.68 | +5.96 |
+3.23% |
Capital One Financial Corp
“We are deeply disappointed to see the CFPB continue its recent filing pattern lawsuits at the eleventh hour “Pending a change in administration,” Capital One said in a statement. “We strongly disagree with their claims and will defend ourselves vigorously in court.”
GET THE FOX BUSINESS ANYWHERE CLICK HERE
The McLean, Based in Virginia The bank added that it widely marketed the 360 Performance Savings Account, including on national television, “with the simplest and most transparent terms in the industry” and that its 360 accounts offer good rates.
Reuters contributed to this report.
