Capital One has disclosed that a federal agency – the Consumer Financial Protection Bureau (CFPB) – could launch an enforcement action against the bank, claiming it made misleading statements about its savings accounts.
Capital One made the revelation about possible litigation in a filing with the Securities and Exchange Commission.
Capital One said the CFPB took the action after some consumers sued the bank, claiming it did not disclose the difference in the rates of interest paid on its “360 Performance Savings” and its “360 Savings” accounts. The plaintiffs claim that caused them to miss a higher rate of interest on their money.
Capital One has denied the charges leveled by the lawsuit, saying it has a right to alter interest rates paid on accounts whenever it wants. It said information about changes to its interest rates was posted on its website.
New York is also investigating
The bank is drawing increased regulatory scrutiny as it pursues a deal to acquire Discover Financial Services. New York Attorney General Letitia James is investigating the $35.3 billion deal to determine if it violates New York’s antitrust law.
In a petition filed with the New York Supreme Court, James requested an out-of-state subpoena related to the investigation. In the petition, James voiced several concerns about the deal.
“Capital One and Discover are already two of the largest issuers of credit cards in the U.S.,” the document states. “Together, they would be the largest credit card issuer, with $250 billion in combined outstanding credit card loans.”
The petition also expressed the concern that Capital One is also the largest issuer of credit cards to customers with subprime credit scores.