Capital One has been sued by the US CFPB for evading billions in interest payments

Written by Jonathan Stempel

(Reuters) – Capital One was sued on Tuesday by the US Consumer Financial Protection Bureau, which accused the bank of illegally evading more than $2 billion in interest payments from consumers who held “high interest” savings accounts.

In a complaint filed in federal court in Alexandria, Virginia, the CFPB said Capital One promised customers that its 360 Savings account offered the “best” “best” and “highest” interest rates, but then capped the rate. just those. 0.30% as deposit rates rise across the country.

The CFPB also said Capital One in 2019 created a 360 Performance Savings account, which was similar to 360 Savings but had a much higher interest rate of 4.25% through August 2024, only to hide its existence to prevent account holders from -Saving account 360 to not change.

“Banks should not lure people with promises they can't keep,” CFPB Director Rohit Chopra said in a statement.

The lawsuit seeks civil penalties, restitution and other remedies for violations of the Consumer Financial Protection Act of 2010 and the Truth in Savings Act.

“We are very disappointed to see the CFPB continue its recent pattern of filing lawsuits at the eleventh hour prior to a change in administration,” Capital One said in a statement. “We absolutely do not agree with what they are saying and we will be held accountable in court.”

The McLean, Virginia-based bank added that it markets the 360 ​​Performance Savings account widely, including on national television, with “the simplest and most transparent terms in the industry,” and that its 360 accounts all offer great rates.

Capital One is among the largest US banks, and had $353.6 billion in deposits as of September 30, 2024.

The case is CFPB v Capital One Financial Corp et al, US District Court, Eastern District of Virginia, No. 25-00061.

(Reporting by Jonathan Stempel in New York; Additional reporting by Michelle Price in Washington, DC; Editing by Louise Heavens and Chizu Nomiyama)