The CFPB is suing Capital One for misleading consumers about their savings account interest rates and cheating them out of more than $2 billion in interest

The Consumer Financial Protection Bureau (CFPB) has accused Capital One Financial Corp. of misleading customers by offering a higher interest rate on a new savings account while excluding existing accounts from the same benefit.

In a lawsuit filed Tuesday in the U.S. District Court for the Eastern District of Virginia, the CFPB alleges that Capital One launched the 360 Performance Savings Account in 2019, featuring an interest rate that eventually rose to 4.25%. This was significantly higher than the 0.3% rate offered on its existing savings product, the 360 Savings account. The agency claims that Capital One had previously marketed its 360 Savings account as offering some of the “top,” “best,” and “highest” interest rates in the U.S.

“Capital One is being sued by the CFPB for depriving families of billions in interest on their savings accounts,” CFPB Director Rohit Chopra stated. “Banks should not lure customers with promises they fail to deliver.”

A spokesperson for Capital One expressed disappointment over what the bank described as the CFPB’s “last-minute lawsuits ahead of a change in administration.” The bank has pledged to contest the claims in court.

The CFPB estimates that customers lost out on more than $2 billion in interest payments due to the discrepancy. The lawsuit seeks monetary penalties and measures to prevent similar practices in the future.

Legal and Regulatory Context

This lawsuit is not Capital One’s first encounter with legal challenges over its savings accounts. Since 2023, the bank has faced multiple class-action lawsuits related to these allegations. In an October filing, Capital One disclosed that the CFPB had informed the bank it was considering action based on claims similar to those in the lawsuits.

The CFPB’s lawsuit comes amid a flurry of regulatory actions led by Chopra in the final weeks before President-elect Donald Trump’s inauguration. Recently, the agency also sued Walmart Inc. and JPMorgan Chase & Co. in separate cases and finalized several new rules.

Capital One, headquartered in McLean, Virginia, will now defend itself in court as the CFPB seeks accountability and restitution for impacted customers.