The Consumer Financial Protection Bureau is suing Capital One for ‘cheating’ customers out of $2 billion in interest.
Transcript:
CONWAY GITTENS: It was a choppy session on Tuesday as investors tried to guess what’s next. There’s speculation Donald Trump might put gradual tariffs in place when he takes office. Meanwhile, a report showing tamer-than-expected wholesale inflation raises questions about when the next Fed rate cut will be.
Another clue on Inflation comes Wednesday with the Consumer Price Index. In addition, earnings season kicks off with JPMorgan Chase leading the way for big banks.
Speaking of banks, Capital One is in hot water with the Consumer Financial Protection Bureau. The consumer banking watchdog accuses Capital One of cheating savers out of more than $2 billion in interest payments.
At issue are two of Capital One’s savings accounts with very similar names, but very different interest rates. The CFPB alleges the names intentionally mixed up customers who thought both accounts were the same higher-paying savings accounts. The difference, however, is quite stark. The legacy 360 Savings account, which originally was an internet only higher-yield account, had a 0.3 percent interest rate from 2019 to 2024. Meanwhile, a newly created 360 Performance Savings rate went from 0.4 percent in 2022 to 4.35 percent in January 2024.
According to the CFPB’s complaint “Capital One did not specifically notify 360 Savings account holders about the new product, and instead worked to keep them in the dark about these better-paying accounts.” CFPB Director Rohit Chopra said “banks should not be baiting people with promises they can’t live up to.” Capital One defended the practice and said it would vigorously defend itself in court.
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