CFPB sues Capital One, alleges it misled consumers on savings rates

Core Viewpoint - The Consumer Financial Protection Bureau (CFPB) is suing Capital One for allegedly misleading consumers regarding savings account interest rates, claiming the bank cheated customers out of over $2 billion in interest [1]. Group 1: Allegations Against Capital One - The CFPB asserts that Capital One deceived holders of its "360 Savings" account by conflating it with the higher-yield "360 Performance Savings" account, failing to inform customers about the newer option [2]. - The interest rates for the two accounts were significantly different, with the "360 Performance Savings" rate increasing from 0.4% in April 2022 to 4.35% in January 2024, while the "360 Savings" rate was lowered and frozen at 0.3% from late 2019 to mid-2024 [3]. - The CFPB claims that despite the low interest rate, the "360 Savings" account was marketed as a high-interest option, with Capital One allegedly obscuring the higher-yield account from existing customers [4]. Group 2: Capital One's Response - Capital One has denied the allegations, stating that it transparently marketed the "360 Performance Savings" account [5]. - The company expressed disappointment over the CFPB's lawsuit, claiming it disagrees with the accusations and intends to defend itself vigorously in court [6]. - Capital One emphasized that the "360 Performance Savings" product was widely marketed, including on national television, and claimed to have used the simplest and most transparent terms in the industry [6].