NEW YORK—New York Attorney General Letitia James is suing Capital One N.A. and Capital One Financial Corporation for “cheating” its online savings account customers out of millions of dollars in interest payments, the New York AG’s office reported.
The lawsuit alleges 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,” the New York AG’s office said.
The lawsuit seeks to hold Capital One accountable and provide restitution to consumers who were cheated out of the interest they thought they were earning, the New York AG’s office reported.
“New York families work hard to save money for their futures, and they deserve every dollar of interest they are promised,” said James. “Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice. Big banks are not allowed to cheat their customers with false advertising and misleading promises. I will always fight to protect New Yorkers’ wallets and prevent banks from ripping off consumers to boost their own bottom lines.”
The lawsuit asserts that while Capital One promoted its 360 Performance Savings accounts to existing customers, it did not notify its 360 Savings customers of the chance to earn more interest.
“Capital One even instructed its employees not to tell 360 Savings customers about the new product unless they explicitly asked,” the New York AG’s office reported.