The Consumer Financial Protection Bureau (CFPB) has initiated legal action against Capital One, N.A., along with its parent company, Capital One Financial Corp., asserting that the firm deprived millions of consumers of over $2 billion in interest earnings. According to the CFPB, Capital One assured customers that its prominent "360 Savings" account offered among the nation's most competitive and high interest rates. In reality, the bank kept the interest rate notably low even as national rates escalated.
Concurrently, Capital One launched a nearly identical savings product, "360 Performance Savings," distinguished primarily by its substantially higher interest payouts, at one point offering more than 14 times the rate of the 360 Savings account. The complaint suggests Capital One failed to explicitly inform 360 Savings account holders about this new, superior product and instead chose to withhold information about the more lucrative savings opportunity.
The CFPB contends that Capital One's actions effectively concealed the better-paying product from existing 360 Savings account holders, resulting in over $2 billion in lost interest payments for millions of consumers. The lawsuit aims to halt the companies' unlawful practices, secure compensation for affected consumers, and enforce civil monetary penalties that would be directed to the CFPB's victims relief fund.
"Capital One is facing legal action from the CFPB for effectively shortchanging families on their savings account earnings," stated CFPB Director Rohit Chopra. "It is imperative that banks do not entice individuals with promises they cannot deliver on."
Capital One, N.A. operates as a national bank with assets exceeding $480 billion and functions as a wholly owned subsidiary of Capital One Financial Corp. (COF).
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