The logo for the Consumer Loan Consumer Consulting One Financial Corp. is seen in its head office in McLean, Virginia, January 20, 2023.
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The Prosecutor General of New York Letitia James continued Capital One On Wednesday, the accusation of the customers of the bank of “cheating” on millions of dollars in payments of interest, only a few months after the financial protection office of consumers of the Trump administration abandoned a similar prosecution against the financial institution.
In a complaint filed before the Manhattan Federal Court, James alleged that Capital One had marketed his account “360 separates” as his high -performance savings account, then left customers in the dark by not informing them of his new product “360 savings performances” which offered considerably higher interest rates.
While interest rates increased from 2022, the state prosecutor's office said that Capital One has froze the interest rate of its savings product 360 to 0.3%, while increasing the rate of the 360 performance savings accounts up to 4.35%, which means that New York savings customers have lost “millions of dollars”.
The trial also alleges that Capital One asked its employees not to speak to 360 savings customers on the new product “unless they asked them explicitly”.
The complaint imitates the dispute by the CFPB, which was abandoned in February under the acting director of the CFPB of the Trump era, Russell Vought. This alleged chase of capital marketing One led American customers to miss more than $ 2 billion in interest.
The abandoned CFPB affair is part of a multitude of other proceedings in terms of application that the agency has engaged under the former director of the CFPB, Rohit Chopra, and who were rejected by the administration of President Donald Trump.
“Capital One has provided high yields without captures, then removed the carpet in their clients and hoped that no one would notice,” James said in a statement on Wednesday. “Large banks are not allowed to deceive their customers with false advertisements and misleading promises.”
A capital spokesperson One declared in a statement to CNBC that he was strongly disagreed with the complaints of the Attorney General and would defend himself vigorously. “
“Our flagship performance product 360 has been largely marketed, including on national television, and has always been available in a few minutes for all new and existing customers without any of the usual industry restrictions,” said the spokesperson.
The bank also challenged the allegations of the CFPB earlier this year.
New York's prosecution accuses Capital One of violating the law of states and federals and requests “restitution and damages for all customers affected by Capital One”.