Capital One Faces Allegations of Cheating Customers Out of $2 Billion

A lawsuit claims Capital One misled customers, costing them over $2 billion in interest.

Capital One Faces Allegations of Cheating Customers Out of $2 Billion
Capital One Faces Allegations of Cheating Customers Out of $2 Billion

Chicago: So, there’s this big fuss about Capital One. They’ve been accused of cheating their customers out of a whopping $2 billion. Can you believe that?

It all started with their ads promising high-yield savings accounts with no fees and no minimum deposits. They made it sound super easy, right? But according to a lawsuit from the Consumer Financial Protection Bureau, there was a catch.

Apparently, Capital One kept interest rates way too low, like just 0.30% last summer, even when the Federal Reserve was raising rates above 5%. That’s a huge difference!

The lawsuit claims they confused customers by having two similar account names: 360 Savings and 360 Performance Savings. They didn’t even let their employees talk about the better-paying account. That’s just sneaky!

The CFPB called this whole thing deceptive and illegal. They pointed out that the only real difference was the interest rate. A Capital One spokesperson said they disagree with the lawsuit and plan to fight it in court.

This isn’t the first time Capital One has been in hot water. Just last month, they were accused of not protecting customers from over $800 million in fraud with the Zelle app.

It seems like the CFPB is really ramping up their actions against big banks lately, especially with a new administration coming in. They’re not backing down, saying they’ll take action wherever they see violations.

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