Overview

• The lawsuit filed by New York AG Letitia James claims Capital One froze interest rates on its 360 Savings account at 0.30% while offering up to 4.35% on a newer product, 360 Performance Savings.
• James alleges the bank instructed employees not to inform customers about the higher-yield option unless explicitly asked, depriving depositors of significant interest earnings.
• According to the complaint, a customer with $10,000 in a 360 Savings account since 2019 would have earned $186 in interest over five years, compared to $1,090 if switched to the 360 Performance Savings account.
• The AG's office seeks civil fines and restitution for affected customers, accusing Capital One of violating New York consumer protection laws.
• The lawsuit follows a similar case filed by the CFPB in January but dropped in February after leadership changes under the Trump administration.