The US Consumer Financial Protection Bureau (CFPB) has sued Capital One, alleging that the bank misled consumers about its high-interest savings accounts and cheated them out of over $2 billion in lost interest payments. The CFPB claims that Capital One froze the rate for its 360 Savings accounts at a low level despite rising nationally, while creating a new account with a significantly higher interest rate that customers were not informed about.
Capital One had promoted 360 Savings as an account offering one of the nation’s highest interest rates, but allegedly failed to notify accountholders about a new offering called 360 Performance Savings. The CFPB says the bank worked to keep customers in the dark about the distinction between the two products and forbade employees from proactively informing those with 360 Savings accounts.
The agency alleges that Capital One illegally avoided paying billions in interest to millions of consumers and is seeking civil penalties and financial relief. The CFPB Director, Rohit Chopra, stated that banks should not make promises they cannot keep. In response, Capital One strongly disagrees with the allegations and plans to vigorously defend itself in court.
The bank’s 360 banking products currently offer different interest rates, with 360 Savings accounts at around 0.50% and 360 Performance Savings accounts at about 3.74%. The CFPB claims that these rates were significantly different in the past, with 360 Performance Savings being nearly 14 times higher than 360 Savings in July 2024.
Source: https://apnews.com/article/capital-one-sued-360-savings-cfpb-1e902f1eb5aabef8297640b0d5579a25