On January 14, 2025, the federal government sued Capital One, accusing it of deceptive practices related to its “360 Savings” accounts. Consumer Financial Protection Bureau v. Capital One Financial Corp., No. 25-cv-00061 (E.D. Va Jan. 14, 2025). In the suit, the Consumer Financial Protection Bureau (CFPB) alleges that Capital One avoided paying billions of dollars in interest to millions of customers by freezing interest rates on the 360 Savings account at exceptionally low levels while introducing a similar account with much higher rates—the “360 Performance Savings” account.1
Overview of the Allegations
The government alleges that Capital One marketed its 360 Savings account as offering some of the nation’s best interest rates.2, 44 Customers were assured their savings would grow faster compared to other savings accounts. Id. But in 2019, Capital One stopped offering the 360 Savings account to new customers and introduced the 360 Performance Savings account, which was nearly identical but offered significantly higher interest rates.3, 56, 58
From 2020 to 2024, the 360 Savings account’s interest rate was frozen at just 0.30%, even as interest rates across the nation increased.6 By comparison, the 360 Performance Savings account offered rates as high as 4.35%. Id. Despite this, Capital One allegedly worked to obscure the existence of the higher-rate account from its existing 360 Savings customers:
- Similar Names, Different Rates: The bank used nearly identical marketing for the two accounts, creating confusion about their differences.73-74
- Lack of Transparency: Capital One replaced references to the 360 Savings account with the 360 Performance Savings account on its website, giving the impression that the accounts were the same.75-85
- Restricting Information: Employees were reportedly prohibited from proactively informing 360 Savings account holders about the higher-rate account.86-88
The CFPB’s Claims
The CFPB alleges that these actions misled millions of consumers, causing them to miss out on over $2 billion in potential interest earnings.1, 7, 91, 96 The lawsuit claims that Capital One violated federal consumer protection laws by engaging in deceptive and abusive practices.92-122
What This Means for Consumers
The CFPB’s lawsuit seeks to halt Capital One’s alleged misconduct and impose penalties on the bank. However, the lawsuit does not aim to directly compensate account holders for their financial losses. Private lawsuits may provide an opportunity for affected customers to seek compensation for the interest they lost due to Capital One’s actions.
