Capital One accused of owing members $2 billion, NPR reports

The Consumer Finance Protection Bureau is suing Capital One, claiming the bank failed to pay more than $2 billion in interest to its customers.

The Consumer Affairs Bureau, a federal agency responsible for consumer protection in the financial industry, says Capital One marketed its 360 savings account as having one of the best interest rates in the country, but no ‘has not mentioned to these customers that its new product, the 360 ​​​​Performance. The savings account had interest rates of up to 4.35%, compared to 360 Savings’ 0.30%.

The agency alleges that the bank “conspired” to keep its members’ low-yielding 360 savings accounts open by freezing their interest rates, giving the lower- and higher-yielding accounts similar names and not marketing the higher yielding accounts to them.

“The CFPB is suing Capital One for defrauding families out of billions of dollars from their savings accounts,” said CFPB Director Rohit Chopra. “Banks shouldn’t harass people with promises they can’t keep.”

Capital One did not immediately respond to a question from NPR, but in a statement provided to The Associated Press, it said it was “deeply disappointed to see the CFPB continue its recent trend of filing lawsuits at the last minute before a change of administration. The bank added that its 360 products “have always been available in just minutes to all new and existing customers, without any of the industry’s usual restrictions,” the AP reported.

The CFPB said that with its lawsuit, it intended to stop Capital One’s allegedly illegal practices and have it impose civil penalties on a CFPB victim relief fund.