On January 14, 2025, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Capital One, N.A.and its parent company, Capital One Financial Corporation, alleging years of deceptive and abusive practices related to the bank’s marketing and management of its 360 Savings accounts.

Capital One, a national bank with over $480 billion in assets, and its holding company are accused of misleading consumers about interest rates, misrepresenting product terms, and taking unfair advantage of customers who held older, low-yield savings accounts.

The CFPB’s Allegations

According to the Bureau’s complaint, between 2013 and 2019, Capital One marketed its 360 Savings accounts as “high interest” savings products that offered “one of the nation’s top savings rates.” The bank claimed that customers would earn much more interest compared to other savings or money market accounts.

However, the CFPB alleges that these statements were false or misleading. From December 2020 through at least August 2024, Capital One kept the 360 Savings account rate fixed at 0.30%, a rate far below the market average and nowhere near the “high interest” level advertised to consumers.

Launch of a New Product — and Confusion for Existing Customers

In 2019, Capital One stopped offering the 360 Savings account to new customers and introduced a new product: the 360 Performance Savings account.

While the bank marketed this new account with the same features, terms, and benefits as the original 360 Savings account — and continued to advertise it as offering “one of the nation’s top savings rates” — the interest rate disparity between the two products became stark.

By August 2024, the rate on 360 Performance Savings accounts was more than 14 times higher than the rate paid on 360 Savings accounts. Despite this massive gap, Capital One did not automatically convert or notify existing 360 Savings customers that a higher-yield option was available.

Instead, the CFPB alleges that the bank took steps to obscure the differences between the two products, leaving long-term 360 Savings customers earning minimal returns while newer customers benefited from much higher rates.

Alleged Legal Violations

The CFPB’s lawsuit claims that Capital One’s actions violated several federal consumer protection laws, including:

• The Consumer Financial Protection Act (CFPA): The Bureau alleges that Capital One engaged in deceptive and abusive acts and practices by misrepresenting the interest rates and misleading consumers about the availability of higher-yield products.

• The Truth in Savings Act (TISA) and Regulation DD: The Bureau claims that Capital One, N.A. violated TISA by failing to accurately disclose terms and rates to customers, as required for deposit accounts.

By maintaining the lower interest rate for existing customers while introducing a nearly identical product with far higher returns, the Bureau contends that Capital One took unreasonable advantage of consumers’ lack of awareness about the differences between the two accounts.

What the CFPB Is Seeking

The Bureau’s lawsuit seeks:

• Injunctive relief to prevent Capital One from continuing these practices.

• Monetary redress for affected consumers who earned lower interest than promised.

• Civil money penalties to hold the company accountable for its violations.

The case represents one of the CFPB’s most significant actions against a major national bank in recent years, underscoring the Bureau’s focus on financial institutions that mislead consumers through marketing or account design.

Why This Matters for Consumers

This lawsuit serves as a reminder that even large, well-known banks can engage in practices that harm consumers. Many customers trusted that their 360 Savings account was among the nation’s best options — only to later learn they were earning a fraction of what newer customers received.

Consumers should regularly review the interest rates and terms of their deposit accounts and compare them to newer products offered by the same institution. Banks are not required to automatically move your money into higher-yield products, even if the new product is essentially the same.

If you believe a financial institution has misled you about account terms or rates, you can file a complaint directly with the CFPB.

Learn More

If you’ve disputed the issue and the inaccurate information still remains on your credit report, contact The Credit Attorney. Our team can review your case, help enforce your rights under the Fair Credit Reporting Act, and take legal action if necessary to get your credit corrected.

You can read the CFPB’s full complaint against Capital One here:
👉 CFPB Lawsuit: Consumer Financial Protection Bureau v. Capital One, N.A. and Capital One Financial Corporation (January 14, 2025)