New York AG James sues Capital One after Trump’s CFPB drops claims
New York Attorney General Letitia James has filed a lawsuit against Capital One, alleging that the bank engaged in deceptive practices that cheated customers out of millions of dollars in interest payments. The lawsuit, filed in Manhattan federal court, claims that Capital One marketed its “360 Savings” account as a high-yield savings account, but failed to inform customers about its new “360 Performance Savings” product, which offered significantly higher interest rates.
According to the complaint, as interest rates began to rise in 2022, Capital One froze the interest rate of its 360 Savings product at 0.3%, while increasing the rate of the 360 Performance Savings accounts to as high as 4.35%. This discrepancy resulted in New York 360 Savings customers missing out on “millions of dollars of interest.” Furthermore, Capital One allegedly instructed its employees not to inform 360 Savings customers about the new product unless specifically asked.
This lawsuit mirrors a similar case brought by the Consumer Financial Protection Bureau (CFPB) against Capital One, which was dropped in February under the Trump administration. The CFPB suit alleged that Capital One’s marketing practices caused U.S. customers to miss out on over $2 billion in interest.
New York Attorney General Letitia James condemned Capital One’s actions, stating, “Big banks are not allowed to cheat their customers with false advertising and misleading promises.” In response to the lawsuit, a Capital One spokesperson stated that the bank strongly disagrees with the allegations and will vigorously defend itself in court. The spokesperson emphasized that the 360 Performance Savings product was widely marketed and easily accessible to all customers.
The lawsuit accuses Capital One of violating state and federal laws and seeks restitution and damages for all affected customers. This legal action highlights the importance of transparency and fair practices in the financial industry, as well as the role of regulatory agencies in holding banks accountable for deceptive practices.
