The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One N.A., and its parent company, Capital One Financial Corp., alleging they deprived millions of consumers of over $2 billion in interest payments. According to the CFPB, Capital One misled customers by marketing its 360 Savings account as a high-interest product, promising one of the nation’s best rates. However, while interest rates rose nationwide between 2019 and 2024, the bank lowered and froze the 360 Savings rate at just 0.3%. During the same period, Capital One launched a nearly identical product, the 360 Performance Savings account, which offered significantly higher rates up to 4.35% by January 2024 but failed to notify existing customers about this new option. The CFPB alleges Capital One actively worked to obscure the 360 Performance Savings account from 360 Savings accountholders to maintain a two-tier system.
The CFPB claims Capital One violated the Truth in Savings Act and other consumer protection laws by misrepresenting its savings products and keeping consumers in lower-yielding accounts. The agency seeks to halt the bank’s practices, secure compensation for affected customers, and impose civil money penalties to be paid into its victims' relief fund. CFPB Director Rohit Chopra criticized the bank’s actions, emphasizing that financial institutions must honor their promises to consumers.
