Capital One Sued by US Government for Cheating Consumers Out of $2 Billion in Interest
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One, accusing the bank of cheating millions of consumers by not paying out more than $2 billion in interest on its high-interest savings accounts. The CFPB claims that Capital One froze the interest rates of its flagship “360 Savings” accounts at low levels despite rates rising nationwide, and launched a new account with better interest rates without informing “360 Savings” customers.
The CFPB alleges that Capital One’s marketing of the “360 Savings” account was misleading, using words such as “top,” “best,” and “highest” to describe the interest earned, but failing to disclose that the rates were actually low. The agency claims that the bank’s actions cost consumers more than $2 billion in lost interest payments.
Capital One has denied the allegations, stating that it will vigorously defend itself in court. The bank claims that the new account was marketed widely and had the simplest and most transparent terms in the industry.
The lawsuit seeks to stop Capital One’s “unlawful conduct,” provide redress for harmed consumers, and impose civil money penalties. The CFPB’s director, Rohit Chopra, said that the agency is suing Capital One for cheating families out of billions of dollars on their savings accounts, and that banks should not be allowed to bait people with promises they cannot live up to.
