Capital cashout: You could be owed money from Capital One's $2 billion scheme
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If you've been diligently tucking away your hard-earned dollars into a Capital One 360 Savings account, you might be in for a surprise—and not the pleasant kind.
It turns out that Capital One has been accused of a scheme that may have cost customers like you a staggering $2 billion in interest earnings.
But don't worry, The GrayVine is here to guide you through the storm and help you understand how you might reclaim what's rightfully yours. What are the details you need to know?
The Consumer Financial Protection Bureau (CFPB), a watchdog dedicated to protecting consumers like us, has brought a lawsuit against Capital One.
The claim? That the bank lured customers with the promise of “top” and “highest” interest rates for their 360 Savings accounts, only to freeze those rates at a meager 0.30 percent.
Meanwhile, interest rates were climbing across the country, in step with the Federal Reserve's benchmark rate.
To add insult to injury, Capital One introduced a new product, the “360 Performance Savings” account, which was nearly identical to the 360 Savings account but with one crucial difference: it offered much higher interest rates, at times over 14 times higher than the 360 Savings rate.
The CFPB alleges that Capital One kept its 360 Savings account holders in the dark about this new, more lucrative option.
The bank is accused of scheming to prevent these customers from learning about the better-paying account, effectively denying them the chance to earn more on their savings. “The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts,” stated CFPB Director Rohit Chopra. “Banks should not be baiting people with promises they can't live up to.”
Capital One has expressed disappointment with the CFPB's lawsuit, claiming to have marketed the new 360 Performance Savings account transparently and widely.
However, the CFPB contends that Capital One “illegally deceived customers” and purposefully marketed the two products similarly to confuse customers and keep them from switching to the higher-interest account.
The CFPB's lawsuit aims to halt these alleged deceptive practices, secure compensation for affected consumers, and impose civil money penalties on Capital One.
The exact amount that customers could receive if the CFPB wins is still unknown, but the lawsuit is a beacon of hope for many who feel shortchanged..
Have you been affected by the Capital One scheme? Do you have tips for fellow savers on how to stay on top of their accounts? Share your experiences and advice in the comments below!
It turns out that Capital One has been accused of a scheme that may have cost customers like you a staggering $2 billion in interest earnings.
But don't worry, The GrayVine is here to guide you through the storm and help you understand how you might reclaim what's rightfully yours. What are the details you need to know?
The Consumer Financial Protection Bureau (CFPB), a watchdog dedicated to protecting consumers like us, has brought a lawsuit against Capital One.
The claim? That the bank lured customers with the promise of “top” and “highest” interest rates for their 360 Savings accounts, only to freeze those rates at a meager 0.30 percent.
Capital One has been accused by the Consumer Financial Protection Bureau (CFPB) of deceiving customers out of $2 billion in interest payments on savings accounts. Image source: Expect Best / Pexels.
Meanwhile, interest rates were climbing across the country, in step with the Federal Reserve's benchmark rate.
To add insult to injury, Capital One introduced a new product, the “360 Performance Savings” account, which was nearly identical to the 360 Savings account but with one crucial difference: it offered much higher interest rates, at times over 14 times higher than the 360 Savings rate.
The CFPB alleges that Capital One kept its 360 Savings account holders in the dark about this new, more lucrative option.
The bank is accused of scheming to prevent these customers from learning about the better-paying account, effectively denying them the chance to earn more on their savings. “The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts,” stated CFPB Director Rohit Chopra. “Banks should not be baiting people with promises they can't live up to.”
Capital One has expressed disappointment with the CFPB's lawsuit, claiming to have marketed the new 360 Performance Savings account transparently and widely.
However, the CFPB contends that Capital One “illegally deceived customers” and purposefully marketed the two products similarly to confuse customers and keep them from switching to the higher-interest account.
The CFPB's lawsuit aims to halt these alleged deceptive practices, secure compensation for affected consumers, and impose civil money penalties on Capital One.
The exact amount that customers could receive if the CFPB wins is still unknown, but the lawsuit is a beacon of hope for many who feel shortchanged..
Have you been affected by the Capital One scheme? Do you have tips for fellow savers on how to stay on top of their accounts? Share your experiences and advice in the comments below!
