Most consumers find themselves in a dispute with their bank at one time or another. Or President Trump is no exception His company has filed a lawsuit against Capital One Financial Corp., accusing the bank of illegally "de-banking" his real estate business for political reasons.
The lawsuit, filed Friday in Florida state court, claims that Capital One abruptly terminated hundreds of accounts in 2021, leading to financial harm and business disruptions.
Allegations of political bias
According to the lawsuit, the Trump Organization had been banking with Capital One for decades and held millions of dollars in its accounts. However, on March 8, 2021, the bank allegedly informed the company that it would end their relationship within three months, without prior warning or justification.
The lawsuit asserts that Capital One’s decision was motivated by political and social pressures, claiming that the bank sought to distance itself from Trump due to his conservative political views.
“Capital One’s unilateral decision came about as a result of political and social motivations and its ‘woke’ beliefs that it needed to cut ties with President Trump,” the lawsuit states.
Capital One denies wrongdoing
Capital One has responded to the allegations, stating: “We do not and have never closed customer accounts for political reasons.”
While the bank has not publicly commented on the specific reasons for closing Trump’s accounts, the timing of the decision—two months after the January 6, 2021, U.S. Capitol riot—raises speculation. The Trump Organization’s lawsuit, however, does not mention the riot or the subsequent legal challenges Trump faced at the time.
Legal and political reactions
Trump and his supporters have long claimed that banks and financial institutions discriminate against conservatives. During a recent Davos summit, Trump criticized major banks for allegedly targeting customers based on political beliefs.
His son, Eric Trump, took to social media on Friday to warn that the lawsuit against Capital One is just the beginning.
“This lawsuit, and those that follow, are necessary steps to protect the integrity of American business practices,” he wrote. “We will not stand by while big banks misuse their power to stifle businesses and harm innocent Americans.”
What’s next
The Trump Organization is seeking unspecified damages and a court ruling that Capital One violated consumer protection and fraud laws by terminating the accounts unfairly.
The case, The Donald J. Trump Revocable Trust v. Capital One N.A., is being heard in the 11th Judicial Circuit in Miami-Dade County, Florida. The outcome could have broader implications for financial institutions and their ability to cut ties with high-profile customers.
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