New Yorkers are to receive a substantial chunk of $425 million in restitution after Capital One was caught cheating its customers out of higher interest payments on their savings accounts.
Attorney General Letitia James, leading a bipartisan coalition, opposed an earlier settlement that failed to adequately compensate the victims. The new agreement is more than double the original proposed amount.
Capital One promised ‘high interest’ savings rates but kept them artificially low while offering a separate account with dramatically higher rates. AG James sued for misleading practices and fought for a fairer deal.
The settlement includes $34 million for New York customers and will require Capital One to match the interest rates of its 360 Performance Savings accounts, totaling an estimated $530 million in additional interest for consumers nationwide.
Attorney General James expressed satisfaction with the revised agreement, emphasizing her commitment to ensuring fair treatment by financial institutions. The lawsuit is being handled by Assistant Attorneys General Adam J. Riff, Chisolm Allenlundy, and Nora Van Horn, among others.
This landmark settlement sends a strong message about holding financial giants accountable for deceptive practices that harm consumers.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes|Legal News
- Source: Official Source ↗
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