The Consumer Financial Protection Bureau filed a lawsuit against Capital One, N.A. and its parent, Capital One Financial Corp., alleging the bank deceived millions of consumers by touting its “360 Savings” account as providing one of the nation’s best and highest interest rates while keeping the rate low and obscuring a substantially higher-yielding, otherwise similar savings product. The CFPB is seeking to stop the alleged unlawful conduct, obtain redress for harmed consumers, and impose civil money penalties payable into the CFPB’s victims relief fund. According to the complaint, Capital One marketed 360 Savings as a variable-rate “high interest” account, but from late 2019 to mid-2024 lowered and then froze the rate at 0.30% as rates rose nationwide. Around the same period, Capital One launched “360 Performance Savings,” which at one point paid more than 14 times the 360 Savings rate, and increased that rate from 0.40% in April 2022 to 3.30% as of January 2023 and 4.35% as of January 2024. The CFPB alleges Capital One kept 360 Savings accountholders in lower-yielding accounts by using similar product naming and marketing, removing most website references to 360 Savings without notifying customers it still existed as a distinct product, excluding 360 Savings accountholders from marketing campaigns for 360 Performance Savings, and restricting employees from proactively informing 360 Savings accountholders about the higher-rate account. The claims cite alleged violations of the Truth in Savings Act and the Consumer Financial Protection Act’s prohibitions on unfair, deceptive, or abusive acts or practices.

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