New York continues Capital One for cheating savings depositors

By Jonathan Stempel

New York (Reuters) -Capital One (COF) was prosecuted Wednesday by the Prosecutor General of New York, Letitia James, who accused the bank of deceiving the depositors with its “high interest” of savings accounts on millions of dollars in interest.

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 Capital One also kept these depositors in the dark in September 2019, when he launched 360 performance savings accounts, which gave new interest rates of depositors who culminated at 4.35% while older depositors have remained blocked with low rates.

James said that Capital One had never said 360 savings 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 the capital promises that they would receive” one of the best savings rates in the country “,” 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.

Capital One did not immediately respond to requests for comments. Its 360 performance savings accounts now give 3.6%.

The US Consumer Financial Protection Bureau filed a similar complaint against Capital One on January 14, but abandoned his file at the end of February after a change in leadership and the return of US President Donald Trump to the White House.

James noted that the dismissal and said that his trial “aims to guarantee that capital does not escape responsibility”.

Last month, Capital One paid private national disputes to 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.

(Report by Jonathan Stempel in New York, edition by Nick Zieminski and Bill Berkrot)