New York Attorney General Letitia James filed a lawsuit against Capital One on Wednesday, accusing the bank of misleading customers with its ‘high interest’ savings accounts, resulting in millions of dollars lost in potential interest. The lawsuit claims that despite promising one of the highest interest rates in the country for its 360 Savings accounts, Capital One froze the rate at 0.30% even as national interest rates increased. Additionally, when Capital One launched its 360 Performance Savings accounts in September 2019, which peaked at an interest rate of 4.35%, the bank did not inform existing customers about the potential benefits of switching accounts. The complaint alleges that Capital One violated New York consumer protection laws and seeks civil fines as well as restitution for affected customers. Capital One has denied the allegations, stating that the 360 Performance Savings account has always been accessible to all customers without restrictions. This lawsuit follows the Consumer Financial Protection Bureau’s decision to drop a similar case earlier this year.
— new from New York Post
