CFPB sues Capital One for 'cheating' customers out of over $2 billion in interest

[BumRushDaShow]

Last edited Tue Jan 14, 2025, 03:21 PM - Edit history (1)

Source: NBC News/CNBC

Jan. 14, 2025, 12:00 PM EST / Source: CNBC


The Consumer Financial Protection Bureau announced Tuesday that it was suing Capital One for misleading consumers about their savings account interest rates and “cheating” them out of more than $2 billion in interest.

The agency said in a statement Capital One deceived holders of its “360 Savings” account by conflating it with its newer and higher-yield savings account option, the “360 Performance Savings” account. The bank allegedly failed to notify 360 Savings account holders of the newer option and marketed the two products similarly to lead customers to believe they were the same.

However, the interest rates of the two options were substantially different, according to the CFPB. Capital One increased the 360 Performance Savings interest rate from 0.4% in April 2022 to 4.35% in January 2024, while it lowered and then froze the 360 Savings rate at 0.3% between late 2019 and mid-2024, the agency said.

Despite its relatively low interest rate, the CFPB alleged, the 360 Savings account was advertised as a high-interest savings account. The bureau said Capital One aimed to keep 360 Savings users in the dark about the higher-yield option by replacing all references to the account with the similarly named 360 Performance Savings option on its website, excluding account holders from marketing campaigns advertising the higher-yield account and forbidding employees from notifying account holders about the 360 Performance Savings option.

Read more: https://www.nbcnews.com/business/consumer/cfpb-sues-capital-one-cheating-customers-2-billion-interest-rcna187623

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Link to CFPB PRESS RELEASE - CFPB Sues Capital One for Cheating Consumers Out of More Than $2 Billion in Interest Payments on Savings Accounts

[IronLionZion]

1. I remember that back when rates started increasing everywhere except my savings account.

I was wondering why the rate was so low for a "high yield" account. Then I looked around at other options, opened a new account, and transferred my savings over. It was not obvious so I can see how a lot of people would miss it. Seems pretty shady.

[marybourg]

3. Yes, they're not the only ones doing it.

[snot]

2. One can almost always find a better deal

at a credit union.

[SWBTATTReg]

4. And Capital One isn't accepted by our local bar anymore, after their stupid screw-ups at the bar. I don't have the card

either and never will get one either. $2 billion dollars is a lot of money, I hope that the regulatory people are looking into their preying actions on grabbing more interest than they should have had (the misleading ads).

[Firestorm49]

5. What's in YOUR wallet!

[BumRushDaShow]

6. Their hands!

[C0RI0LANUS]

7. "Lock him up! Lock him up!" Yeah, right.

Richard Fairbank has eight children who will all no doubt drive fancy new sports cars, fly the world in First Class, attend Ivy League schools without incurring school or car loan debts, and purchase luxurious homes without mortgages. (Photo: Marvin Joseph / The Washington Post / Getty Images)

According to Forbes, oligarch Richard Dana Fairbank has a net worth of only $1.4B.

In addition to the CFPB, Capital One has been sanctioned by the FTC, the OCC, and FINCEN.

A criminal indictment or a civil lawsuit is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.





Sources:

https://www.forbes.com/profile/richard-fairbank/

https://www.fincen.gov/news/news-releases/fincen-announces-390000000-enforcement-action-against-capital-one-national

https://www.ftc.gov/news-events/news/press-releases/2021/09/ftc-fines-capital-one-ceo-richard-fairbank-repeatedly-violating-antitrust-laws

https://www.occ.gov/news-issuances/news-releases/2020/nr-occ-2020-101.html

https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-capital-one-for-cheating-consumers-out-of-more-than-2-billion-in-interest-payments-on-savings-accounts/

[Tom Dyer]

8. Capital One.

Customer Zero.