CFPB Sues Capital One Over Deceptive Interest Rates
WASHINGTON, D.C. – The U.S. Consumer Financial Protection Bureau (CFPB) today sued Capital One alleging that it cheated millions of consumers out of more than $2 billion in interest. The CFPB alleges that Capital One promised existing consumers that its flagship “360 Savings” account provided one of the nation’s “best” and “highest” interest rates, when, in fact, it froze the interest rate at a low level. Capital One’s proposal to acquire the Discover credit card network, which Public Citizen opposes, remains under review with federal regulators. Bartlett Naylor, financial policy advocate for Public Citizen, released the following statement:
“Banks that deceive customers out of billions on their savings accounts should face severe penalties. As the federal government continues to review whether to allow Capital One’s bid to become the nation’s sixth largest bank with its proposed Discover acquisition, regulators must weigh the CFPB’s allegations carefully. From the mega-bank mortgage frauds that led to the 2008 financial crisis to the many documented Wells Fargo abuses, America doesn’t need another malefactor that’s too big to keep honest.”