Capital One misled customers by launching a new savings account with a higher interest rate that was not also offered to existing savings accounts, the Consumer Financial Protection Bureau (CFPB) said. American government, this Tuesday (14), in a legal action against the bank.
Capital One launched the 360 Performance Savings Account in 2019, with an interest rate that later rose to 4.25%, according to the agency’s indictment. This was much higher than the 0.3% offered on the bank’s existing savings account product called 360 Savings. The CFPB alleges that the bank promised existing customers one of the “top,” “best” and “highest” interest rates in the U.S. through its 360 Savings account, according to the lawsuit, filed in U.S. District Court for the Eastern District of Virginia.
“The CFPB is suing Capital One for scamming families out of billions of dollars in their savings accounts,” CFPB Director Rohit Chopra said in a statement. “Banks should not attract people with promises they cannot keep.”
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A Capital One spokesperson said the bank is disappointed with the agency’s “recent pattern of filing last-minute lawsuits before a change in government” and that the bank will defend itself in court.
The company is involved in several separate class action lawsuits over this matter, dating back to 2023. The bank, based in McLean, Virginia, disclosed the CFPB investigation in an October filing.
Customers missed out on more than $2 billion in missed interest payments, the CFPB said in the statement. The agency seeks to change the bank’s behavior and impose monetary penalties through legal action.
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The complaint follows a series of regulatory and legal actions by Chopra ahead of President-elect Donald Trump’s inauguration next week. Just before the end of the year, the agency sued Walmart and JPMorgan Chase in separate lawsuits and finalized a series of new rules.
In its October filing, Capital One said the agency informed the bank that month that it was considering action based on allegations similar to those mentioned in the class actions.
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