HousingWireHousingWire
The Consumer Financial Protection Bureau (CFPB) on Thursday dropped a legal action against Capital One. Last month, the agency accused Capital One of cheating consumers out of more than $2 billion in interest payments on their savings accounts.
The legal action, which was initiated under former CFPB Director Rohit Chopra, alleged that “from 2013 to 2019, Capital One represented to consumers that its 360 Savings account was a ‘high interest’ account with a variable rate” that would “earn much more interest than the average savings or money market account.”
The bureau went on to claim that “these representations were false or otherwise misleading.” It also alleged that from December 2020 to at least August 2024, Capital One kept the corresponding interest rate for the accounts at 0.30%, “a rate that falls far short of the level represented in its marketing.”
The new development with Capital One was announced at roughly the same time that the bureau also dropped its RESPA “kickback” lawsuit against Rocket Companies and the Jason Mitchell Group on Wednesday.
Both dismissals come amid President Donald Trump’s moves to dismantle the bureau. As a result, staff have been instructed not to supervise, regulate or engage in active litigation as the administration decides what will become of the CFPB.
The dismissals also come the same day as Trump’s nominee to head the CFPB, Jonathan McKernan, testified before the Senate in a confirmation hearing. In his hearing, McKernan critiqued the bureau and said that it “suffers from a crisis of legitimacy.”
Other dismissals by the CFPB this week include a lawsuit brought last year against the Pennsylvania Higher Education Assistance Agency (PHEAA), accusing of it of illegally collecting on student loans discharged in bankruptcy, and a case against the online lender SoLo Funds.
Neither the CFPB nor Capital One responded immediately to HousingWire‘s requests for comment.
