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Capital One Accused of Misleading Customers on Interest Rates
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One, alleging the bank misled customers by not informing them about higher-interest account options.
According to the CFPB, Capital One promised depositors high interest rates on its 360 Savings account but froze their rates at 0.30%, even as deposit rates increased nationwide.
In 2019, Capital One launched a new account, the 360 Performance Savings account, with a higher interest rate. However, the CFPB claims the bank failed to disclose this option to existing customers.
The CFPB also alleges that Capital One instructed branch employees not to inform customers about the account conversion option unless asked.
“Banks should not mislead customers with promises they cannot keep,” said CFPB Director Rohit Chopra.
The lawsuit seeks fines, restitution, and other remedies for violations of consumer protection laws.
Capital One has expressed disappointment with the lawsuit and claims it marketed the 360 Performance Savings account widely with transparent terms. The bank maintains that its 360 accounts offer competitive interest rates.