Capital One Sued By New York Over Hidden Interest Rate Scheme That Cost Consumers Millions

Capital One shares fell 1.9% on Wednesday after New York Attorney General Letitia James filed a lawsuit accusing the bank of misleading customers through a “two-tier” savings scheme. The complaint alleges Capital One froze interest rates on legacy 360 Savings accounts at 0.30% while promoting a newer 360 Performance Savings account offering up to 4.35%, without informing existing customers. The AG said this practice denied long-time account holders millions in interest, undermining trust in the bank’s advertised high-yield products. Capital One has not issued a public response. Capital One's shares fell 1.9% on Wednesday, the announcement day.