Consumers Deserve Justice: Attorney General Bonta Opposes Inenough Capital One Bank Settlement | State of California – Division of Justice

Consumers have been deceived out of almost $3 billion, settlement proposes $300 million  

OAKLAND — California Attorney General Rob Bonta immediately joined a coalition of 18 attorneys common in submitting an amicus temporary opposing the approval of a proposed multi-district class motion settlement with Capital One Bank on the grounds that the proposed $300 million settlement isn’t honest, cheap, or enough, and considerably lower than the $3 billion shoppers misplaced. Further, Capital One is taking the place that ultimate approval of the settlement would forestall attorneys common nationwide from in search of simply compensation for victims of the corporate’s scheme.

“Capital One has misled consumers through false marketing and a lack of transparency regarding its savings account system,” mentioned Attorney General Bonta. “Given an opportunity to make loyal customers whole, Capital One is instead attempting to not only underpay those it has harmed, but maintain the deceptive, anti-consumer practices that prompted this lawsuit to begin with. As the People’s Attorney, I will not allow financial institutions to pull the wool over consumers’ wallets. I support my colleague, New York Attorney General Letitia James, who is taking further action to hold Capital One accountable. Her work must not be undermined by a toothless settlement in this case.”  

The class motion alleges Capitol One financial institution marketed its “360 Savings” accounts as excessive curiosity however subsequently launched the equally named new “360 Performance Savings” accounts that supplied rates of interest as a lot as 14 occasions larger with out disclosing to current account holders that they might simply switch their funds to the brand new excessive curiosity 360 Performance Savings accounts and obtain the upper rates of interest. This saved Capital One almost $3 billion in curiosity. However, the proposed settlement solely pays the victims $300 million. The proposed settlement additionally purports to pay out one other $125 million within the type of raised rates of interest for holders of outdated accounts; this cost is deceptive, as these shoppers would obtain much more in curiosity in the event that they merely switched to the 360 Performance Savings account. 

Worse, the settlement permits Capital One to proceed its misleading practices. 

Despite the hopelessly insufficient cost to its victims, Capital One additionally asserts that the approval of the settlement will preclude attorneys common from in search of significant compensation for the corporate’s victims. In truth, Capital One argues {that a} currently pending action by the New York Attorney General can be resolved by this settlement and that the Attorney General can’t obtain correct redress for the corporate’s victims.

In this amicus temporary, Attorney General Bonta joins the attorneys common of New York, Arizona, Colorado, Connecticut, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, Ohio, Oregon, Rhode Island, and Washington.  

A replica of the temporary could be discovered right here.