Capital One cheated customers from ‘high curiosity’ – Business News
Capital One was sued on Wednesday by New York Attorney General Letitia James, who accused the bank of dishonest depositors with its flagship “high interest” financial savings accounts out of hundreds of thousands of {dollars} in curiosity.
The lawsuit adopted the Consumer Financial Protection Bureau’s resolution in late February to drop a comparable lawsuit, following a change in that company’s management and President Donald Trump’s return to the White House.
In a grievance filed in Manhattan federal courtroom, James mentioned Capital One promised depositors one of the nation’s highest rates of interest on their 360 Savings accounts, but froze their charge at simply 0.30% at the same time as rates of interest rose nationwide.
Capital One was accused of dishonest depositors with its flagship “high interest” financial savings accounts out of hundreds of thousands of {dollars} in curiosity. REUTERS
She mentioned Capital One additionally stored these depositors at the hours of darkness in September 2019 when it launched 360 Performance Savings accounts, whose rates of interest peaked at 4.35%.
James mentioned Capital One by no means advised the depositors they might earn more by switching accounts, and even advised staff to say nothing until customers requested.
“Customers opened and maintained 360 Savings accounts based on Capital One’s promises that they would receive ‘one of the nation’s best savings rates,’” the grievance mentioned. “Instead, Capital One took advantage of its customers and hoped that they wouldn’t notice.”
The lawsuit accused McLean, Virginia-based Capital One of violating New York shopper safety legal guidelines. It seeks civil fines and restitution to customers.
“We strongly disagree with the attorney general’s claims and will vigorously defend ourselves in court,” Capital One mentioned in a assertion.
New York Attorney General Letitia James mentioned Capital One by no means advised 360 Savings depositors they might earn more by switching accounts, and even advised staff to say nothing until customers requested. Getty Images
Capital One added that 360 Performance Savings “has always been available in just minutes to all new and existing customers without any of the usual industry restrictions.” The account now yields 3.6%.
James mentioned her lawsuit “seeks to ensure that Capital One does not escape accountability” after the CFPB ended its case.
Last month, Capital One settled non-public nationwide litigation within the Alexandria, Va., federal courtroom over the 360 Savings accounts. Terms haven’t been disclosed.
Capital One expects to finish its $35.3 billion takeover of Discover Financial Services on May 18.
The case is New York v. Capital One NA et al, U.S. District Court, Southern District of New York, No. 25-04037.
