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CFPB files lawsuit against Capital One for allegedly deceiving customers and causing over $2 billion in interest losses


The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One, accusing the bank of misleading consumers about their savings account options and cheating them out of more than $2 billion in interest. The CFPB alleges that Capital One deceived customers with its “360 Savings” account by failing to inform them about the higher-yield “360 Performance Savings” account. Despite the substantial difference in interest rates between the two accounts, Capital One marketed them similarly, leading customers to believe they were the same.

According to the CFPB, Capital One increased the interest rate on the 360 Performance Savings account from 0.4% in April 2022 to 4.35% in January 2024, while keeping the 360 Savings rate at 0.3% between late 2019 and mid-2024. The bureau claims that Capital One aimed to keep customers in the dark about the higher-yield option by replacing references to the 360 Savings account with the 360 Performance Savings option, excluding account holders from marketing campaigns, and prohibiting employees from informing customers about the better account.

CFPB Director Rohit Chopra stated that banks should not make promises they cannot keep and accused Capital One of cheating families out of billions of dollars on their savings accounts. In response, Capital One denied the allegations, stating that it transparently marketed the 360 Performance Savings account with simple and clear terms. The bank expressed disappointment in the CFPB’s lawsuit and vowed to vigorously defend itself in court.

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www.nbcnews.com

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