Capital One agreed to pay a regulation of $ 425 million after having faced a national dispute accusing him of cheating the savings depositors of higher interest rates by not advertising higher performance accounts, according to a file of the Federal Court.
The preliminary regulation, awaiting the approval of a judge, was filed in an opinion on Friday before the American district court of the Oriental District of Virginia.
The depositors who continued the bank declared that Capital One had falsely promised higher interest rates on 360 savings accounts, which had a fixed rate of 0.3%, and did not adequately make its best rates on 360 savings accounts.
The higher yield account had an interest rate as high as more than 4%, depending on the prosecution.
As part of the regulation, $ 300 million will go to the depositors to compensate for the interests they have won in the higher yield account.
The rest of the regulation will go to depositors with 360 savings accounts open as an additional interest. Legal costs will also be paid to the regulations.
As part of the agreement, Capital One did not admit any reprehensible act.
The representatives of Capital One and several lawyers of the complainants did not immediately respond to requests for comments on Saturday.
The dispute in Virginia was combined from several separate proceedings across the country.
On Wednesday, Letitia James, the New York General Prosecutor, continued Capital One on behalf of her state depositors for having failed to notify customers of 360 savings accounts, who faced “artificially low” rates, which they could have taken to account with better interest rates, according to a press release.
“Capital One has provided high yields without captures, then removed the carpet in their clients and hoped that no one would notice,” James said in the press release. “Large banks are not allowed to deceive their customers with false advertisements and misleading promises.”
The prosecution brought by Ms. James was not subject to the regulations filed on Friday. Capital One declared that he would defend himself in court and rejected his allegations.
The Consumer Financial Protection Bureau also continued the bank at the end of the mandate of President Joseph R. Biden Jr. in January, arguing that Capital One had cheated on consumers of more than $ 2 billion in interest payments. The Trump administration has since abandoned this case.
