CFPB sues Capital One for 'cheating' customers out of over $2 billion in interest
Published On Jan 14, 2025, 9:48 AM
The Consumer Financial Protection Bureau (CFPB) is suing Capital One, alleging that the bank misled customers about the interest rates of its savings accounts, costing them over $2 billion. The CFPB claims Capital One deceived customers by marketing its lower-yield 360 Savings account alongside the higher-yield 360 Performance Savings account, without effectively communicating the substantial differences in interest rates. Capital One has denied these allegations, asserting that it marketed its products transparently.
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Due to the lawsuit and the potential for regulatory penalties or reputational damage, investors may perceive higher risk in Capital One's operations, leading to a decline in stock price.
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