https://finance.yahoo.com/news/york-sues-capital-one-cheating-165814177.html
NEW YORK (Reuters) -Capital One (COF) was sued on Wednesday by New York Attorney General Letitia James, who accused the bank of cheating depositors with its flagship "high interest" savings accounts out of millions of dollars in interest.
In a complaint filed in Manhattan federal court, James said Capital One promised depositors one of the country's highest interest rates on their 360 Savings accounts, yet froze their rate at just 0.30% even as interest rates rose nationwide.
She said Capital One also kept those depositors in the dark in September 2019, when it launched 360 Performance Savings accounts, which gave new depositors interest rates that peaked at 4.35% while older depositors remained stuck with low rates.
James said Capital One never told 360 Savings depositors they could earn more by switching accounts, and even told employees to say nothing unless customers asked.
"Customers opened and maintained 360 Savings accounts based on Capital One's promises that they would receive 'one of the nation's best savings rates,'" the complaint said. "Instead, Capital One took advantage of its customers and hoped that they wouldn't notice."
The lawsuit accused McLean, Virginia-based Capital One of violating New York consumer protection laws. It seeks civil fines and restitution to customers.