NOV 02, V7N- Capital One is facing potential enforcement action from the Consumer Financial Protection Bureau (CFPB) over alleged misrepresentations regarding its savings accounts, as disclosed in a recent filing. The controversy stems from a lawsuit filed by customers who claimed they were unaware of a higher-yielding “360 Performance Savings” account, which offered better rates than Capital One's existing “360 Savings” account. Customers allege that the difference in interest rates was not adequately communicated, causing them to miss out on higher returns.

Capital One, however, contends that it retained the contractual right to adjust rates and that information about the new account was available on its website. The bank has sought to dismiss the lawsuit and has yet to receive a formal comment from the CFPB regarding possible litigation.

This probe comes as Capital One pursues a $35.3 billion acquisition of Discover Financial Services, a deal that could reshape the U.S. payments industry if approved. The acquisition is under scrutiny, with New York Attorney General Letitia James investigating potential antitrust issues. In a bid to ease regulatory concerns, Capital One has pledged a $265 billion commitment over five years toward lending, philanthropy, and investment if the merger is greenlit.

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