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Jonathan Stempel
Fri, May 16, 2025, 4:47 PM 1 min read
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By Jonathan Stempel
(Reuters) -Capital One agreed to wage $425 cardinal to settee nationwide litigation accusing it of cheating savings relationship depositors retired of overmuch higher involvement rates by not telling them they could determination their wealth to higher-yielding accounts.
A announcement describing the preliminary colony was filed connected Friday evening successful the Alexandria, Virginia national court. The accord requires a judge's approval.
Depositors said Capital One falsely promised precocious involvement rates connected their 360 Savings accounts, portion softly offering overmuch amended rates to caller customers connected the likewise named 360 Performance Savings accounts.
The 360 Savings depositors said Capital One froze their rates astatine 0.3%, and offered rates to 360 Performance Savings depositors that peaked astatine 4.35% aboriginal past year.
Capital One, based successful McLean, Virginia, did not admit wrongdoing successful agreeing to settle, the announcement shows. The 360 Performance Savings accounts present output 3.6%.
The U.S. Consumer Financial Protection Bureau filed a akin suit successful January, earlier President Donald Trump took office, but dropped the lawsuit successful precocious February arsenic the White House ended astir of the agency's enforcement activity.
On Wednesday, New York Attorney General Letitia James sued Capital One connected behalf of 360 Savings depositors successful that state. The slope rejected James' claims and said it would support itself successful court.
Capital One expects to implicit its $35.3 cardinal takeover of Discover Financial Services connected May 18.
The lawsuit is In re Capital One 360 Savings Account Interest Rate Litigation, U.S. District Court, Eastern District of Virginia, No. 24-md-03111.
(Reporting by Jonathan Stempel successful New York; Additional reporting by Nate Raymond; Editing by Chizu Nomiyama)
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