New York Attorney General Sues Capital One, Claims Customers Lost Over $2 Billion

New York Attorney General Letitia James is suing Capital One for allegedly misleading customers and costing them more than $2 billion over its 360 Savings and 360 Performance Savings accounts.

Letitia James is accusing Capital One of fraudulently defrauding its customers of more than $2 billion in interest they were owed. The charges are related to Capital One's "360 Savings" savings account, which was advertised as a high-interest account.

In reality, the bank froze the “360 Savings” interest rate at 0.30% in 2022 without informing customers, and in the meantime created a new offer – the “360 Performance Savings” account, which offered much higher interest rates of up to 4.35%. Customers did not know that they had to transfer funds from “360 Savings” to the new account to continue receiving high interest on their savings, James claims.

The attorney general alleges that Capital One intentionally instructed its employees not to inform customers about changes to the parameters of the original offer or about the new savings account – unless they asked about it.

The lawsuit follows a case previously brought against Capital One by the Consumer Financial Protection Bureau (CFPB), which was dismissed in February by the Trump administration. The CFPB had estimated that the bank's customers could have lost more than $2 billion in interest due due to unfair practices.

Ed. JŁ