CFPB mulling enforcement action against Capital One
The Consumer Financial Protection Bureau is considering issuing an enforcement action against Capital One Financial in McLean, Va., in connection with claims that online savings accounts tricked some consumers into believing they were getting high rates.
Capital One disclosed in its quarterly filing with the Securities and Exchange Commission that it received a civil investigative demand from the CFPB in August. The bureau then issued a notice of opportunity to respond and advise (NORA) letter stating that it is considering an enforcement action.
Capital One said it will respond to the NORA letter.
The CFPB’s investigation stems from a class-action lawsuit, filed in July 2023 in the Eastern District of Virginia by savings account holders who alleged breach of contract and a variety of other causes of action tied to Capital One’s introduction of a new savings account product with a higher interest rate than existing savings account products.