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The Consumer Financial Protection Bureau is suing Capital One for 'cheating' customers out of $2 billion in interest.

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00:00I'm Conway Gittins reporting from the New York Stock Exchange, here's what we're watching
00:04on the street today.
00:05It was a choppy session on Tuesday as investors tried to guess what's next.
00:10There's speculation Donald Trump might put gradual tariffs in place when he takes office.
00:15Meanwhile, a report showing tamer than expected wholesale inflation raises questions about
00:19when the next Fed rate cut will be.
00:22Another clue on inflation comes Wednesday with the Consumer Price Index.
00:26In addition, earnings season kicks off with JPMorgan Chase leading the way for big banks.
00:32Speaking of banks, Capital One is in hot water with the Consumer Financial Protection Bureau.
00:37The consumer banking watchdog accuses Capital One of cheating savers out of more than $2
00:43billion in interest payments.
00:46At issue are two of Capital One's savings accounts with very similar names but very
00:52different interest rates.
00:53The CFPB alleges the names intentionally mixed up customers who thought both accounts were
00:59the same higher-paying savings accounts.
01:02The difference, however, is quite stark.
01:05The legacy 360 savings account, which originally was an internet-only higher-yield account,
01:10had a 0.3% interest rate from 2019 to 2024.
01:14Meanwhile, a newly created 360 performance savings rate went from 0.4% in 2022 to 4.3%
01:24in January 2024.
01:27According to the CFPB's complaint, Capital One did not specifically notify 360 savings
01:34account holders about the new product and instead worked to keep them in the dark about
01:39these better-paying accounts.
01:41CFPB Director Rohde Chopra said, banks should not be baiting people with promises they cannot
01:47live up to.
01:48Capital One defended the practice and said it would vigorously defend itself in court.
01:54That'll do it for your daily briefing from the New York Stock Exchange.
01:57I'm Conway Gittins with The Street.

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