The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Capital One in Virginia federal court, alleging that the bank avoided paying over $2 billion in interest to customers by keeping them in lower-yield savings accounts. According to the complaint, Capital One promised customers that its “360 Savings” accounts would provide top-tier interest rates. However, the bank introduced a more lucrative “360 Performance Savings” account, which it allegedly did not properly disclose to existing customers.
The CFPB claims that this practice deprived millions of customers of significant interest earnings while benefiting the bank’s bottom line. CFPB Director Rohit Chopra characterized Capital One’s actions as a deliberate scheme to mislead consumers and retain billions at their expense.
The lawsuit accuses Capital One of engaging in deceptive practices that violate the Consumer Financial Protection Act and the Truth in Savings Act, which mandates transparency in how banks disclose account terms. The CFPB seeks penalties, compensation for affected consumers, and other remedies.
This legal action comes at a critical time for Capital One, which is awaiting regulatory approval for a $35 billion merger with Discover Financial Services. Critics of the merger argue that the CFPB’s allegations highlight concerns about Capital One’s consumer compliance record. Public Citizen, an advocacy group, has called for regulators to consider the lawsuit as part of their merger review.
If you believe you were impacted by Capital One’s actions, please contact us to explore your options and understand your rights.
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Sauder Schelkopf has a nationally recognized litigation practice. The firm currently serves as court-appointed lead counsel in courts across the country. The attorneys at Sauder Schelkopf have recovered over $1 billion on behalf of their clients and class members. Our firm was recognized by the Legal Intelligencer’s 2022 Professional Excellence Awards. The Legal Intelligencer’s Professional Excellence Awards honor Pennsylvania law firms and attorneys who have made a significant, positive impact on the legal profession. Our firm was named in the Litigation Departments of the Year (Specialty Area category; runner-up), an award that honors the best litigation practice in a small or mid-sized firm in Pennsylvania. This recognition was based on the firm’s 2021 litigation work and its important ongoing cases. LawDragon has recognized our attorneys in its list of the “500 Leading Plaintiff Consumer Lawyers” for 2022. This list notes: “From the opioid epidemic to toxic substances and defective products, truck accidents to wildfires and sexual abuse, these are the lawyers who stand on the front line in individual lawsuits and class actions seeking justice.” Mr. Schelkopf was named to Pennsylvania’s Best Lawyers® 2022 for Class Actions/Mass Tort Litigation. The American Lawyer named Mr. Sauder to its 2021 Northeast Trailblazers. The honor recognizes 60 lawyers who are “truly agents of change.” It “recognizes professionals in the Northeast who have moved the needle in the legal industry.” The Legal Intelligencer named Mr. Sauder and Mr. Schelkopf in its 2020 Pennsylvania Trailblazers list recognizing 31 lawyers who “have taken extra measures to contribute to positive outcomes . . . and who are truly agents of change.” The Legal highlighted the firm’s innovative work on advocacy as class counsel in large institutional sex abuse cover-ups, women’s, and children’s rights. Our attorneys have also consistently been recognized by their peers being named to Pennsylvania SuperLawyer, a distinction held by the top 5% of attorneys in Pennsylvania. The National Trial Lawyers Association has also selected our attorneys as the Top 100 Trial Lawyers in Pennsylvania.
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If you believe you were impacted by Capital One’s actions, please contact us to explore your options and understand your rights.