CFPB Sues Capital One for Deceptive Practices

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One and its parent company for allegedly misleading consumers about the interest rates on its 360 Savings accounts from 2013 to 2019. The CFPB claims Capital One marketed these accounts as offering some of the highest interest rates in the nation, but fixed the rate at 0.30% from 2020 to 2024 while launching a similar product, the 360 Performance Savings, with significantly higher rates. The lawsuit alleges that Capital One did not inform existing customers of the new product, resulting in customers missing out on approximately $2 billion in interest. Capital One has stated its disagreement with these claims and intends to defend itself in court. The lawsuit is part of a series of actions by the CFPB before a change in administration, highlighting ongoing tensions between the agency and financial institutions. The CFPB seeks injunctive relief and compensation for affected customers.