The Consumer Financial Protection Bureau (CFPB) has sued Capital One, alleging that it cheated people out of billions of dollars in interest payments on savings accounts. The regulator claims that the bank advertised its 360 Savings account as a high-interest account with a variable rate, but then froze interest rates for existing customers and stopped offering new accounts after 2019.
The CFPB says that Capital One introduced an almost identical 360 Performance Savings account with higher interest rates, without notifying existing customers. This allegedly led to accountholders missing out on $2 billion in interest payments over the past two years. The complaint claims that Capital One’s actions were deceptive and misled customers into thinking their accounts were eligible for better rates.
The CFPB Director Rohit Chopra stated, “Banks should not be baiting people with promises they can’t live up to.” The regulator is seeking billions of dollars in damages from the bank.
Source: https://qz.com/capital-one-cfpb-lawsuit-high-interest-savings-360-1851738930