The State of New York v. Capital One Financial Corporation

Alexandria, Virginia consumer law lawyers represented the Plaintiffs who sue the Defendant on fraud theories.



The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Capital One over claims the company cheated consumers out of more than $2 billion in potential interest earnings on their savings accounts.



The CFPB argued Capital One misled consumers about its 360 Savings accounts and obscured its higher-interest Capital One savings account product from them, in violation of the Truth in Savings Act.



The Trump Administration dismissed the case but the State of New York sued.



The lawsuit alleged that Capital One marketed its "360 Savings” accounts as "high interest” accounts with "one of the nation's best savings rates” that would earn its customers more than an average savings account. In reality, while interest rates rose nationwide, Capital One kept the interest rates for its 360 Savings accounts artificially low. Instead, Capital One created "360 Performance Savings,” a nearly identical type of savings account that provided much higher interest rates than 360 Savings – at one point, more than 14 times higher. Capital One intentionally misled its 360 Savings customers about the existence of its 360 Performance Savings product to avoid paying them millions of dollars in interest. With this lawsuit, Attorney General James seeks to hold Capital One accountable and provide restitution to consumers who were cheated out of the interest they thought they were earning.

Settled for $425 million.