On May 14, 2025, New York Attorney General Letitia James filed a lawsuit against Capital One, accusing the bank of misleading customers about the interest rates on its 360 Savings accounts. The lawsuit, filed in Manhattan federal court, claims that Capital One advertised these accounts as offering some of the best savings rates in the nation, while keeping the rate at just 0.30%—despite a significant rise in national rates.
In 2019, Capital One introduced the 360 Performance Savings accounts, promising new customers interest rates as high as 4.35%. However, according to the lawsuit, existing account holders were not informed about the opportunity to switch to the higher-rate accounts. Employees were allegedly instructed not to disclose this information unless directly asked by customers, which James asserts is a violation of New York’s consumer protection laws.
James is seeking civil penalties and restitution for affected customers, holding Capital One accountable for its deceptive practices. This case follows the dismissal of a similar lawsuit filed by the Consumer Financial Protection Bureau (CFPB) in early 2025. The CFPB had sued Capital One over similar issues, but the case was dropped after changes in leadership and the return of President Trump to office. Despite this, James remains committed to pursuing legal action at the state level.
The lawsuit is being heard under New York v. Capital One NA et al in the U.S. District Court for the Southern District of New York. James’ office argues that Capital One’s failure to disclose material information about the savings account terms caused significant harm to customers, especially those who missed out on higher interest rates.
This legal action underscores the importance of transparency in consumer banking and highlights New York’s commitment to holding financial institutions accountable for deceptive practices. As the case progresses, it may set a significant precedent for consumer rights in the banking sector.
