In short, the CFPB alleges Capital One misled consumers regarding its savings accounts, resulting in over $2 billion in lost interest. The suit centers on the bank’s alleged deceptive marketing of its “360 Savings” account, which offered significantly lower interest rates than its “360 Performance Savings” account, while employing tactics to obscure the superior option from customers. Capital One denies these allegations and asserts its marketing was transparent. The lawsuit precedes a change in administration, prompting a strong denial from Capital One.
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The Consumer Financial Protection Bureau (CFPB) filed suit against Walmart and Branch Messenger, alleging they coerced over a million delivery drivers into using costly deposit accounts to access wages. The lawsuit claims the companies opened accounts without authorization, forcing drivers to pay approximately $10 million in fees to transfer funds. Walmart and Branch deny the allegations, citing factual errors and a lack of due process. The CFPB contends the practice harmed low-income workers, highlighting a broader issue concerning gig worker protections.
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The Consumer Financial Protection Bureau (CFPB) filed suit against Early Warning Services (operator of Zelle) and three major U.S. banks (JPMorgan Chase, Bank of America, and Wells Fargo) for failing to adequately address fraud complaints and compensate victims, resulting in over $870 million in losses since 2017. The CFPB alleges the banks prioritized rapid Zelle adoption over fraud prevention, creating a system vulnerable to exploitation. The lawsuit seeks to halt these practices and impose unspecified penalties. This action represents the CFPB’s continued effort to increase consumer protection against financial institutions, despite facing significant industry pushback.
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John Q. Hosedrinker