Don Luskin, CEO of Trendmacro, weighs in on DOGE's requests to deregulate banks, the economic impact of mass evictions, and housing affordability.
The Consumer Financial Protection Bureau (CFPB) has filed a complaint The capital of onealleges that the bank illegally misled customers by not informing them of account options that paid higher interest rates.
particle for direct object Federal Government Consumer Watch It alleges that Capital One's practices meant millions of customers lost $2 billion in profits they could have paid out.
Capital One's corporate headquarters complex in McLean, Virginia. (J. David Ake/Getty Images/File)
In a complaint filed Tuesday, the CFPB accused Capital One of promising depositors that their 360 Savings Account would offer one of the “highest,” “best” and “highest” interest rates in the country. But it fixed their rate at only 0.30% even with the increase in deposit rates. across the country.
The CFPB also said Capital One kept 360 savings depositors in the dark when it launched the 360 Performance Savings Account in 2019, which was identical except with a significantly higher interest rate that will expire in January 2024. It reached 4.35 percent.
Judge blocks effort to recover nearly $750 million worth of Bitcoin hard drive from landfill
Capital One apparently told branch employees not to proactively tell depositors they could switch accounts or send depositors to the bank's account conversion unit unless asked if the conversion was allowed.
Rohit Chopra, director of the Consumer Financial Protection Bureau (Anna Moneymaker/Getty Images/File)
“Banks shouldn't be baiting people with promises they can't keep,” CFPB Director Rohit Chopra said in a statement.
The CFPB announced that Capital One stopped offering 360 Savings to new customers when it introduced 360 Performance Savings, which now returns 3.8 percent annually, according to the bank's website.
Tuesday's lawsuit seeks civil penalties, restitution and other remedies for violations of the Consumer Financial Protection Act of 2010 and the Truth in Savings Act.
| ticker | security | the last | change | change % |
|---|---|---|---|---|
| COF | Capital One Financial Company | 190.50 | +5.80 |
+3.14% |
Capital One Financial Company
“We are deeply disappointed to see the CFPB continue its recent caseload pattern The fight at the eleventh hour Capital One said in a statement: “Prior to the change in management, we strongly disagree with their claims and will vigorously defend ourselves in court.”
Get FOX Business on the Move by clicking here
McLean, Based in Virginia The bank added that it has marketed the 360 Performance Savings Account widely, including on national television, “with the simplest and most transparent terms in the industry”, and that its 360 accounts all offer excellent rates.
Reuters contributed to this report.