CFPB Sues Capital One Over Savings Interest
Analysis based on 9 articles · First reported Jan 14, 2025 · Last updated Jan 15, 2025
The lawsuit against Capita by the United States — Consumer Financial Protection Bureau could lead to significant financial penalties and restitution, potentially impacting Capita's stock price and reputation. While an analyst from Toronto-Dominion Bank — TD Cowen suggests the lawsuit may not affect Capita's acquisition of Discover Financial, the overall sentiment for the banking sector could be negatively affected by increased regulatory scrutiny.
The United States — Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capita, accusing the bank of misleading millions of customers and cheating them out of over $2 billion in interest payments. The CFPB alleges that Capita froze the interest rates of its '360 Savings' accounts at a low 0.30% from 2019 to mid-2024, even as national rates rose. Simultaneously, Capita launched a new product, the '360 Performance Savings' account, which offered significantly higher interest rates, reaching 4.35% by January 2024. The CFPB claims Capita intentionally obscured the existence of the higher-yield account from '360 Savings' accountholders and marketed the two products similarly to keep customers in lower-yielding accounts. Capita denies these allegations, stating it marketed the '360 Performance Savings' account widely and transparently, and plans to vigorously defend itself in court. The lawsuit seeks to halt the alleged unlawful conduct, provide redress to affected consumers, and impose civil money penalties.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard