Millions of consumers were allegedly cheated out of more than $2 billion in interest by one of the largest banks in the nation, according to a lawsuit made public Tuesday by the federal consumer financial protection agency.
The lawsuit filed by the Consumer Financial Protection Bureau (CFPB) is against Capitol One, N.A., of McLean, Va., which had more than $486 billion in assets at the end of the third quarter 2024. The bank is ranked as 11th largest in assets in the nation.
The CFPB contends in its action that the bank promised consumers that its flagship “360 Savings” account provided one of the nation’s “best” and “highest” interest rates. However, the CFPB alleged, the bank froze the interest rate at a low level while rates rose nationwide.
“Around the same time, Capital One created a virtually identical product, ‘360 Performance Savings,’ that differed from 360 Savings only in that it paid out substantially more in interest – at one point more than 14 times the 360 Savings rate,” the CFPB said in a release. “Capital One did not specifically notify 360 Savings accountholders about the new product, and instead worked to keep them in the dark about these better-paying accounts.”
In its lawsuit, the CFPB alleges that the bank obscured the new product from its 360 Savings accountholders and “cost millions of consumers more than $2 billion in lost interest payments.”
The agency said it wants to stop the companies’ unlawful conduct, provide redress for harmed consumers, and impose civil money penalties (CMP). The agency’s complaint does not outline specific totals for redress or CMP.
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