New York AG sues Capital One after Trump-led CFPB drops similar case

Core Viewpoint - Capital One Financial Corp is facing a lawsuit from New York Attorney General Letitia James, accusing the bank of misleading customers regarding interest payments on its savings accounts, resulting in significant financial losses for consumers [2][4]. Group 1: Lawsuit Details - The lawsuit alleges that Capital One marketed its "360 Savings" account as a high-yield savings option but failed to inform customers about the superior "360 Performance Savings" product, which offered interest rates as high as 4.35% [3][4]. - Capital One reportedly froze the interest rate of its 360 Savings product at 0.3% while the new product provided substantially higher returns, leading to millions of dollars in lost interest for customers [4]. - The complaint claims that Capital One instructed employees not to disclose the new product to 360 Savings customers unless specifically asked [4]. Group 2: Regulatory Context - This lawsuit follows a similar case previously filed by the Consumer Financial Protection Bureau (CFPB), which was dropped earlier this year under the Trump administration, alleging that Capital One's marketing practices caused U.S. customers to miss out on over $2 billion in interest [5]. - The New York Attorney General's office is seeking restitution and damages for all affected Capital One customers, asserting violations of state and federal law [6].