
The Consumer Financial Protection Bureau is suing Capital One for preventing its customers from receiving interest they were due in its 360 Savings accounts. Emily Dattilo reports for Barron’s:
Capital One Financial is being sued by the Consumer Financial Protection Bureau, which has accused the bank of illegally misleading millions of consumers, keeping them from receiving more than $2 billion in interest.
“The CFPB alleges that Capital One promised consumers that its flagship ‘360 Savings’ account provided one of the nation’s ‘best’ and ‘highest’ interest rates, but the bank froze the interest rate at a low level while rates rose nationwide,” the CFPB said in a press release.
“Around the same time, Capital One created a virtually identical product, ‘360 Performance Savings,’ that differed from 360 Savings only in that it paid out substantially more in interest—at one point more than 14 times the 360 Savings rate,” the agency continued, adding that the company didn’t notify account holders about the better-paying accounts.
The CFPB’s lawsuit aims to stop unlawful conduct, provide redress for harmed consumers, and impose civil money penalties, which would be paid into a victims relief fund.
“We are deeply disappointed to see the CFPB continue its recent pattern of filing eleventh hour lawsuits ahead of a change in administration,” a Capital One spokesperson said in an emailed statement to Barron’s. “We strongly disagree with their claims and will vigorously defend ourselves in court.”
Action Line: Credit cards are one thing; your savings and investments are another. If you’re concerned about the custodian for your savings, make a change. I like Fidelity Investments. When you want to talk about moving to Fidelity and working with a fiduciary, email me at ejsmith@yoursurvivalguy.com. Click here to subscribe to my free monthly Survive & Thrive letter.