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CFPB Sues Capital One for Cheating Millions on '360 Savings' Account Interest

Jan 14, 2025, 09:21 PM

Capital One Financial Corp. is being sued by the US Consumer Financial Protection Bureau (CFPB), which alleges that the bank cheated millions of consumers out of more than $2 billion in interest payments. The CFPB claims that Capital One misled customers by promoting its '360 Savings' account as offering one of the nation's highest interest rates, while keeping existing customers in lower-yield accounts without informing them of higher rates available. The lawsuit, filed in federal court in Virginia, accuses Capital One of maintaining a two-tier system by freezing interest rates at low levels for several years, even as rates rose nationally. By keeping consumers in the dark about better-paying savings accounts, the bank allegedly avoided paying billions in interest and 'cheated' customers out of owed interest. Despite promoting high-interest savings accounts, Capital One allegedly deliberately underpaid interest to depositors over several years, costing them over $2 billion.