Capital One has been sued by the CFPB for allegedly defrauding customers of $2 billion

The Consumer Financial Protection Bureau (CFPB) is suing. Capital OneAlleging that the bank illegally misled customers by not informing them of account options that paid higher interest rates.

the The federal government’s consumer watchdog It claims Capital One’s practices meant millions of customers missed out on a collective $2 billion they would have otherwise paid in interest payments.

In a complaint filed Tuesday, the CFPB accused Capital One of promising depositors that its 360 Savings Account offered one of the “highest,” “best,” and “highest” interest rates in the country, but it froze the interest rate at just 0.30% even as it rose. Deposit interest rates. At the national level.

The CFPB also said Capital One kept 360 Savings depositors in the dark when in 2019 it launched the 360 ​​Performance Savings Account, which was identical except that it carried a much higher interest rate that reached 4.35% in January 2024.

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Capital One allegedly told branch employees not to proactively tell depositors that they could switch accounts or send depositors to the bank’s account transfer unit unless they asked whether transfers were permitted.

“Banks should not feed people promises they cannot keep,” CFPB Director Rohit Chopra said in a statement.

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The CFPB said Capital One stopped offering 360 Savings to new customers when it introduced 360 Performance Savings, which now yields 3.8% annually, according to the bank’s website.

The lawsuit filed Tuesday seeks civil fines, damages and other remedies for violations of the Consumer Financial Protection Act of 2010 and the Truth in Savings Act.

tape	protection	last	It changes	% changes
COF	Capital One Financial Company	190.68	+5.96	+3.23%

“We are very disappointed to see the CFPB continuing its recent pattern of filings Eleventh hour lawsuits “Ahead of a change in management,” Capital One said in a statement. “We strongly disagree with their claims and will defend ourselves vigorously in court.”

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maclean, Based in Virginia The bank added that it has marketed its 360 Performance Savings Account extensively, including on national television, with “the simplest and most transparent terms in the industry” and that all of its 360 accounts offer great rates.

Reuters contributed to this report.