Capital One has been accused of a devious scheme that tricked customers out of $2 billion in interest payments. The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against the bank, alleging deceptive practices that kept millions of depositors in outdated, lower-yield savings accounts while offering better interest rates on new products.
The bank promoted its “360 Savings” accounts as offering some of the highest interest rates in the nation. However, it later introduced a superior “360 Performance Savings” product with significantly higher interest rates. According to the CFPB, Capital One failed to inform existing customers about the new, higher-yield option, effectively freezing them in the lower-paying accounts. This allowed Capital One to avoid paying substantial interest to customers, amounting to more than $2 billion.
CFPB Director Rohit Chopra called the alleged actions a betrayal, stating, “Banks should not be baiting people with promises they can’t live up to.” Capital One strongly disagrees with the allegations and plans to vigorously defend itself in court.
The lawsuit highlights the impact on millions of customers who were allegedly denied the opportunity to earn substantial interest. The CFPB seeks penalties, restitution for affected consumers, and other remedies. This case underscores the importance of transparency and fairness in the banking industry.
Sources:
https://usaherald.com/cfpb-sues-capital-one-over-alleged-2-billion-savings-account-scheme/
https://www.cbsnews.com/news/capital-one-cfpb-lawsuit-savings-account-rates/
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