The Consumer Financial Protection Bureau (CFPB) recently filed a lawsuit alleging Capital One, N.A., and Capital One Financial Corp., its parent holding company, cheated consumers out of more than $2 billion in interest.
“The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts,” CFPB Director Rohit Chopra said. “Banks should not be baiting people with promises they can’t live up to.”
According to the lawsuit, Capital One promised consumers using a “360 Savings” account that they would receive one of the nation’s “best” and “highest” interest rates but froze the interest rate at a low level. Capital One then created “360 Performance Savings,” a virtually identical product that it paid, at one point, more than 14 times the 360 Savings interest rate. The bank did not notify 360 Savings accountholders of the new product.
Not notifying customers cost more than $2 billion in lost interest payments, the lawsuit states.
The CFPB seeks to impose civil money penalties, provide redress for harmed consumers, and stop the companies’ unlawful conduct.
Virginia-based Capital One is a national bank with more than $480 billion in assets, offering multiple deposit account products. Capital One acquired ING Direct USA in 2012.