Capital one has found itself embroiled in some serious problems in recent times. Lawsuits and other such like disputes have come up against the company in recent times testing its resilience and ability to remain deeply rooted and standing. The latest lawsuit against the company is the Capital one interest rate lawsuit that came up against the company in recent times.
This article takes a look at this lawsuit giving you all the essential details you need to know about the matter. The details you are likely to find about this lawsuit include, who filed the lawsuit, when it was filed and the current progress and status of the matter take a look:
The Main Allegations in the Capital One Interest Lawsuit
The capital one interest lawsuit contains a number of issues all of which were thrown in the face of Capital one. These allegations range from freezing interest rates, misleading marketing to higher yielding account, here is a detailed review of these allegations.
Misleading Marketing Allegation
The first allegation the Capital one is facing allegations of misleading marketing. On this issue, the CFPB is accusing the Capital one bank of deliberately misleading their clients by claiming that their 360 savings account was offering the best interest rates in the country which has been found to not be true upon further investigation. The CFPB finds the Capital one bank guilty of misleading its clients considering that their interest rates in the 360 savings account were not the best as they claimed.
By making this claim, the capital one bank is thought to have misled its clients into opening more and more accounts in the institution’s 360 savings account under the pretext of being the best savings account in the country in terms of interest rates. According to the CFPB the bank used this deceptive marketing language on purpose to lure clients to save money with them all in the hope getting the best interest rates on their finances.
Freezing Interest Client’s Rates
The CFPB claims that apart from just lying about their interest rates, the capital one bank went ahead to freeze the interest rates in their 360 savings account. They claim that the bank froze interest rates in this account and a meagre 0.30% for a very long time. It is alleged that the capital one bank did this even when interests rates in other parts of the country went up thus denying their clients an opportunity to earn from increased interest rates elsewhere.
The Introduction of a Higher Yielding Account
At the same time when capital one bank was freezing people’s interest in the so called 360 savings account, they introduced yet another account known as the 360 high yield savings accounts. This account was not like the other accounts which the bank ran and came with significantly higher interest rates. The funny thing about this account is that while it was proven to exist, the capital one bank openly denied its existence and even went ahead to try and cover it up. The reasons for these actions remain unknown though some people claim it was a scheme to either evade the authorities or it was done with an arterial motive.
Deliberate Decision to Obscure Information
The CFPB continued with its wide raft of allegations this time accusing the institution of deliberately obscuring information. This, the CFPB claims the capital one bank did by denying and obscuring the total existence of the aforementioned higher yield account which contravened the rules of the industry to which the capital one bank belongs.
Deliberately Prohibiting Critical Employee Disclosure
The CFPB further alleges that the Capital one bank prohibited or rather gagged its employees from disclosing the details of the high yield bank account to the bank’s clients. This action and the other stated above resulted in low interest on client’s money in the bank among other issues.
Having considered each one of the issues or rather allegations raised above, the CFPB moved to court citing the capital one bank for the violations of the consumer financial protection act. The lawsuit filed by the CFPB in court seeks to achieve quite a number of objectives among them urge the court to compel the capital one bank to stop the misconduct listed above and offer a timely redress to all the affected clients and impose further penalties on the bank in the form of financial penalties.
The Current Status of the Capital One Interest Rates Lawsuit
There have been very little details on the capital one interest lawsuit from the time of its filing. At this point, it is not clear whether capital one will come out to refute all the claims levelled against them or they will go all the way to the court and try to defend themselves.