CFPB sues Capital One alleging the bank “misled consumers about its 360 Savings accounts”
The US Consumer Financial Protection Bureau (CFPB) has announced it is suing Capital One and its parent holding company, Capital One Financial Corp, for allegedly “cheating consumers out of more than $2 billion in interest payments on savings accounts”, the regulator says in a statement.

CFPB sues Capital One
In its statement this week announcing the lawsuit, which was filed on 14 January in the US District Court for the Eastern District of Virginia, the CFPB alleges that Capital One “unlawfully misled consumers about its 360 Savings accounts and obscured its higher-interest savings product from them”.
The regulator alleges that the bank “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 CFPB claims in its statement that, “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.”
The regulator alleges 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”.
“The CFPB alleges that Capital One obscured the new product from its 360 Savings accountholders and cost millions of consumers more than $2 billion in lost interest payments,” the regulator says.
The CFPB adds that its lawsuit seeks to “provide redress for harmed consumers” and “impose civil money penalties, which would be paid into the CFPB’s victims relief fund”.
In a statement reported by Reuters, the bank says it is “deeply disappointed to see the CFPB continue its recent pattern of filing eleventh hour lawsuits ahead of a change in administration”.
“We strongly disagree with their claims and will vigorously defend ourselves in court,” the bank adds, according to the report.