Capital One was prosecuted Wednesday by the Prosecutor General of New York, Letitia James, who accused the bank of deceiving depositors with its savings accounts “of high interest” on millions of dollars of interest.
The trial followed the decision of the financial protection office of consumers at the end of February to remove a similar trial, following a change in the direction of this agency and the return of President Donald Trump to the White House.
In a complaint filed before the Manhattan Federal Court, James said that Capital One had promised the depositors one of the country’s highest interest rates on their 360 savings accounts, but designed their rate to only 0.30% while interest rates increased nationally.
She said that Capital One also kept these depositors in darkness in September 2019 when he launched 360 performance savings accounts, whose interest rates culminated at 4.35%.
James said that Capital One had never told depositors that they could earn more by changing accounts and even told employees to say nothing unless the customers were asking for it.
“Customers have opened and maintained 360 savings accounts according to capital promises that they would receive” one of the country’s best savings rates, “said the complaint. “Instead, Capital One took advantage of its customers and hoped that they would not notice it.”
The trial accused Capital of McLean, Virginia, of violating the laws on consumer protection from New York. He is looking for civil fines and restitution to customers.
“We are strongly disagreed with the complaints of the Attorney General and we will defend ourselves vigorously in court,” Capital One said in a statement.
Capital One added that 360 performance savings “have always been available in a few minutes to all new and existing customers without any of the usual industry restrictions”. The account now reports 3.6%.
James said his trial “aims to guarantee that capital does not escape responsibility” after the CFPB has ended his case.
Last month, Capital One settled private disputes nationwide in the Federal Court of Alexandria, Virginia, on the 360 savings accounts. The terms have not been disclosed.
Capital One plans to complete its takeover of $ 35.3 billion in discover financial services on May 18.
The case is New York c. Capital One Na et al, US District Court, Southern District of New York, n ° 25-04037.
