In this article, the Consumer Financial Protection Bureau announced on Tuesday that it had filed a lawsuit against Capital One for allegedly deceiving consumers regarding their savings account interest rates, resulting in over $2 billion in lost interest. The agency claimed that Capital One misled holders of its “360 Savings” account by not adequately distinguishing it from its newer and higher-yield savings account option, the “360 Performance Savings” account. Capital One was accused of promoting both products similarly, leading customers to believe they were the same.
According to the CFPB, there was a significant disparity in the interest rates of the two options. Capital One reportedly raised the interest rate of the 360 Performance Savings account from 0.4% in April 2022 to 4.35% in January 2024, while maintaining the 360 Savings rate at 0.3% from late 2019 to mid-2024. Despite the lower interest rate, the CFPB alleged that the 360 Savings account was marketed as a high-interest savings account. The bureau claimed that Capital One attempted to conceal the higher-yield option from 360 Savings account holders by replacing all references to the account with the similarly named 360 Performance Savings option on its website, excluding them from marketing campaigns, and instructing employees not to inform account holders about the 360 Performance Savings option.
CFPB Director Rohit Chopra stated in a news release, “The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts. Banks should not be baiting people with promises they can’t live up to.” In response, Capital One denied the allegations and asserted that it transparently marketed its 360 Performance Savings account. The company expressed disappointment with the CFPB’s actions, criticizing the timing of the lawsuit before a change in administration. Capital One emphasized that the 360 Performance Savings product was widely promoted, including on national television, with clear and straightforward terms, which they believe are the most transparent in the industry.
