The Consumer Financial Protection Bureau (CFPB) has sued Capital One for allegedly misleading customers about its 360 Savings accounts.
CFPB has accused Capital One of “cheating millions of consumers out of more than $2 billion in interest.”
“The CFPB alleges that Capital One promised consumers that its flagship ‘360 Savings’ account provided one of the nation’s ‘best’ and ‘highest’ interest rates, but the bank froze the interest rate at a low level while rates rose nationwide,” the press release states. “Around the same time, Capital One created a virtually identical product, ‘360 Performance Savings,’ that differed from 360 Savings only in that it paid out substantially more in interest—at one point more than 14 times the 360 Savings rate.”
CFPB also alleged that Capital One “did not specifically notify 360 Savings accountholders about the new product, and instead worked to keep them in the dark about these better-paying accounts.”
Via their lawsuit, the CFPB intends to end Capital One’s “unlawful conduct, provide redress for harmed consumers, and impose civil money penalties, which would be paid into the CFPB’s victims relief fund,” according to the press release.
In response to these allegations, Capital One vehemently maintained its innocence. The company stated that it is “deeply disappointed to see the CFPB continue its recent pattern of filing eleventh-hour lawsuits ahead of a change in administration.”
Amid the lawsuit, Capital One appears to be down today, with many customers reporting they can’t make deposits or access cash. On X, the company replied to a customer complaint by stating that the bank is “experiencing a technical issue temporarily impacting services for some customers.”
“We are actively working to resolve the issue and restore all services, and apologize for the inconvenience,” Capital One wrote.
As for CFPB’s lawsuit, well…the bank plans to “vigorously defend” itself in court.
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