
the staff of the Ridgewood blog
Paramus NJ, Capital One is facing a lawsuit from the U.S. Consumer Financial Protection Bureau (CFPB), accused of withholding over $2 billion in interest payments owed to customers with its “high interest” savings accounts.
The lawsuit, filed Tuesday in Alexandria, Virginia federal court, alleges that Capital One misled customers by promoting its 360 Savings account as offering “top,” “best,” and “highest” interest rates. However, the bank reportedly froze interest rates at 0.30%, even as nationwide deposit rates climbed.
Allegations Against Capital One
The CFPB claims that in 2019, Capital One introduced the 360 Performance Savings account, offering significantly higher interest rates—reaching 4.25% by August 2024. Despite this, the bank allegedly obscured the account’s existence, preventing 360 Savings account holders from upgrading.
“Banks should not be baiting people with promises they can’t live up to,” said CFPB Director Rohit Chopra in a statement.
The lawsuit seeks civil penalties, restitution for affected customers, and other remedies for alleged violations of the Consumer Financial Protection Act and the Truth in Savings Act.
Capital One’s Response
In a statement, Capital One criticized the CFPB’s timing, alleging a pattern of lawsuits before changes in administration. The bank plans to “vigorously defend” itself, asserting that the 360 Performance Savings account was widely marketed, including through national television ads, with transparent terms.
Capital One at a Glance
With $353.6 billion in deposits as of September 30, 2024, Capital One is one of the largest banks in the U.S.
The case, CFPB v. Capital One Financial Corp et al, is filed in the U.S. District Court, Eastern District of Virginia, under docket number 25-00061.
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Incredible scumbags.
They were ripping people off when Wells Fargo got caught with the account fraud. They were doing the exact same thing.