CFPB Sues Capital One Over $2 Billion in Interest Withheld from 360 Savings Account Holders

Jan 14, 2025, 06:34 PM

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One, alleging that the bank misled customers and withheld over $2 billion in interest payments. The CFPB claims that Capital One advertised its '360 Savings' account as offering high interest rates, but kept the rate frozen at a low 0.30% from late 2019 to mid-2024, even as national rates increased. Concurrently, Capital One introduced a '360 Performance Savings' account with interest rates rising from 0.40% in April 2022 to 4.35% in January 2024, which it did not disclose to existing '360 Savings' account holders. The CFPB accuses Capital One of intentionally keeping customers in the dark about the better-yielding '360 Performance Savings' account, thereby avoiding billions in interest payments. The agency seeks to impose civil penalties and provide financial relief to affected consumers. Capital One has responded by denying the allegations and stating its intention to defend itself vigorously in court, expressing disappointment over the timing of the lawsuit ahead of a change in administration.