Close Menu
  • Homepage
  • Local News
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
  • Business
  • Technology
  • Health
  • Lifestyle
Facebook X (Twitter) Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
Facebook X (Twitter) Instagram Pinterest
JHB NewsJHB News
  • Local
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
Let’s Fight Corruption
JHB NewsJHB News
Home»Finance»CFPB sues Capital One for ‘cheating’ customers out of over $2 billion in interest
Finance

CFPB sues Capital One for ‘cheating’ customers out of over $2 billion in interest

January 18, 2025No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
CFPB sues Capital One for 'cheating' customers out of over $2 billion in interest
Share
Facebook Twitter LinkedIn Pinterest Email

FILE PHOTO: Signage is seen outdoors a Capital One Financial institution in Manhattan, New York, U.S., November 12, 2021. 

Andrew Kelly | Reuters

The Shopper Monetary Safety Bureau introduced Tuesday that it was suing Capital One for deceptive customers about their financial savings account rates of interest and “dishonest” them out of greater than $2 billion in curiosity.

The company mentioned in a press release Capital One deceived holders of its “360 Financial savings” account by conflating it with its newer and higher-yield financial savings account possibility, the “360 Efficiency Financial savings” account. The financial institution allegedly didn’t notify 360 Financial savings account holders of the newer possibility and marketed the 2 merchandise equally to guide prospects to imagine they have been the identical.

Nevertheless, the rates of interest of the 2 choices have been considerably completely different, in accordance with the CFPB. Capital One elevated the 360 Efficiency Financial savings rate of interest from 0.4% in April 2022 to 4.35% in January 2024, whereas it lowered after which froze the 360 Financial savings price at 0.3% between late 2019 and mid-2024, the company mentioned.

Regardless of its comparatively low rate of interest, the CFPB alleged, the 360 Financial savings account was marketed as a high-interest financial savings account. The bureau mentioned Capital One aimed to maintain 360 Financial savings customers at nighttime in regards to the higher-yield possibility by changing all references to the account with the equally named 360 Efficiency Financial savings possibility on its web site, excluding account holders from advertising and marketing campaigns promoting the higher-yield account and forbidding staff from notifying account holders in regards to the 360 Efficiency Financial savings possibility.

“The CFPB is suing Capital One for dishonest households out of billions of {dollars} on their financial savings accounts,” mentioned CFPB Director Rohit Chopra in a information launch. “Banks shouldn’t be baiting folks with guarantees they can not reside as much as.”

In a press release, Capital One denied the allegations and mentioned it transparently marketed its 360 Efficiency Financial savings account.

“We’re deeply upset to see the CFPB proceed its latest sample of submitting eleventh hour lawsuits forward of a change in administration. We strongly disagree with their claims and can vigorously defend ourselves in court docket,” the corporate mentioned in a press release.

The financial institution added the 360 Efficiency Financial savings product was “marketed broadly, together with on nationwide tv, with the only and most clear phrases within the trade.”

Don’t miss these insights from CNBC PRO

Source link

billion capital CFPB cheating Customers interest Sues
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

GATX, Brookfield Infrastructure to buy Wells Fargo’s rail assets for $4.4bn

May 30, 2025

American Resources and ReElement Technologies expand antimony refining contract

May 30, 2025

AbbVie Inc. (ABBV)’s Pipeline Advances with Temab-A and ABBV-706, Shares Flat

May 30, 2025

What a federal trade court block on Trump tariffs means for consumers

May 30, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

GATX, Brookfield Infrastructure to buy Wells Fargo’s rail assets for $4.4bn

May 30, 2025

Two Indian peacekeepers honoured posthumously for sacrifice in line of duty on International Peacekeepers Day | India News

May 30, 2025

Why Rajkummar Rao fired his chef: ‘Bag pack kijiye aur chale jaiye’; how partners can uphold each other’s dignity | Lifestyle News

May 30, 2025

Zion Williamson accused of rape by alleged victim he dated in college: Report

May 30, 2025
Popular Post

How Much You Need Saved To Live a Middle-Class Retirement in the South

Donald Trump Doubles Down Calling for Liz Cheney to be Locked Up

Odisha health minister shot dead, accused cop arrested

Subscribe to Updates

Get the latest news from JHB News about Bangalore, Worlds, Entertainment and more.

JHB News
Facebook X (Twitter) Instagram Pinterest
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
© 2025 Jhb.news - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.