
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One for allegedly deceiving consumers and costing them over $2 billion in potential earnings. The case involves Capital One's "360 Savings" account, which was marketed with high-interest benefits that never materialized, as the bank kept rates at 0.30%. Meanwhile, a new account, "360 Performance Savings," offered higher interest rates, but existing customers were not informed about this option, as per Consumer Financial Protection Bureau release.
Capital One, with assets exceeding $480 billion, is accused by the CFPB of using a bait-and-switch strategy. "The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts," said CFPB Director Rohit Chopra in the same release. The lawsuit aims to stop Capital One’s allegedly deceptive practices, compensate affected consumers, and impose penalties.
After acquiring ING Direct USA in 2012, Capital One rebranded the "ING Direct" account into the "360 Savings" account, which was promised to offer high interest rates. The Consumer Financial Protection Bureau alleges that from late 2019 to mid-2024, Capital One misled consumers by freezing the rates on the 360 Savings account while marketing the higher-interest "360 Performance Savings" account to new customers, without informing current ones.
The Consumer Financial Protection Bureau claims Capital One engaged in deceptive practices, such as renaming savings accounts to make them appear similar, removing most references to the original 360 Savings account, and failing to inform current account holders about the better "360 Performance Savings" option. This led customers to miss out on higher interest rates they were promised. The CFPB estimates that this resulted in over $2 billion in lost interest.
Under the Consumer Financial Protection Act, the Consumer Financial Protection Bureau has the authority to act against financial institutions suspected of deceptive practices. The bureau is now using this power to seek compensation for affected consumers. People who believe they were misled can file complaints with the CFPB through their website or by calling (855) 411-CFPB (2372). Whistleblowers can contact the CFPB at [email protected]. More information about the CFPB's actions can be found on their official website.