The CFPB Busts A Capital One Scam That Conned Customers Out Of $2 Billion.
The CFPB has busted open a Capital One scam that allegedly misled customers. The bank intentionally neglected to notify account holders of account options that paid higher interest rates.
The CFPB claims Capital One’s practices meant millions of customers missed out on a collective $2 billion from interest payments.
The CFPB also said Capital One kept 360 Savings depositors in the dark in 2019 when it launched the 360 Performance Savings account. The account gave account holders a substantially higher interest rate that reached 4.35% in January 2024.
In a complaint filed two weeks ago, the CFPB accused Capital One of making falsely promises to depositors. The bank told depositors that their 360 Savings account provided one of the nation’s “top,” “best” and “highest” interest rates. However, Capital One froze their rate at just 0.30% as deposit rates rose nationwide.
Capital One allegedly told branch employees not to proactively tell depositors they could switch accounts. Branch employees were also told not to send depositors to the bank’s account conversion unit unless they asked.
The CFPB said Capital One stopped offering 360 Savings to new customers when it introduced 360 Performance Savings. The 360 Performance Savings yields 3.8% annually.
The lawsuit seeks civil fines, restitution and other remedies. The CFPB says the bank violated the Consumer Financial Protection Act of 2010. The government watchdog also said the bank violated the Truth in Savings Act.
Capital One said in a statement that they strongly disagree with the CFPB’s claims and will vigorously defend themselves in court.
The bank added that it marketed the 360 Performance Savings account widely including on national television with the simplest and most transparent terms in the industry. they also said that its 360 accounts all offer great rates.
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