The Consumer Financial Protection Bureau (CFPB) makes a lawsuit against the ninth largest bank in the US for the alleged misleading and cheating of customers with billions of dollars in interest.
The CFPB claims Capital One misled consumers by believing that her product, known as “360 Savings”, offered the best and highest interest rates in the US.
However, the CFPB says that Capital One has kept the interest on the 360 savings account low, even though they rose throughout the country. In addition, because of these promotions, “avoids more than 2 billion dollars in extra interest because of these promotions to pay millions of customers.”
While Capital One brought the 360 savings account to the market because it offered attractive rates, he at the same time launched a product with the same name that promised considerably higher rates, according to the CFPB.
“Around the same time, Capital One created an almost identical product, ‘360 Performance Savings’, which only differed from 360 Savings because it paid more interest rates – at a given moment more than 14 times the interest of 360 Savings. Capital One has not specifically informed the holders of 360 savings accounts of the new product, but instead tried to keep them uncertain about these better -paying accounts. ”
CFPB says that Capital One consciously took steps to prevent 360 savings account holders from getting acquainted of the 360 performance savings account.
“Capital One has, for example, named the two products in the same way and brought them to the market; It has removed almost all references to the 360 savings account product on its website and replaced it with references to the essential 360 performance savings account, without notice that 360 savings account continued to exist as a separate product; It concluded holders of 360 savings accounts on a marketing campaign in which advertising was advertised for 360 performance savings to the other existing customers of Capital One; And it is forbidden to proactively inform 360 savings account holders about 360 performance savings. ”
The lawsuit is intended to stop the alleged illegal behavior of Capital One and, if successful, to offer compensation to injured consumers. The director of the financial supervisor, Rohit Chopra, says:
“The CFPB sues Capital One because of the cheating of families with billions of dollars in their savings accounts. Banks should not bother people with promises that they cannot live up to. “
Capital One has just over $ 483 billion in total assets on September 30, 2024, according to on the federal reserve.
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