### Capital One Faces Potential Enforcement Action Over Savings Account Discrepancies

Capital One may soon find itself in hot water with federal regulators over alleged misleading information regarding its savings accounts. In a recent filing, the consumer lender revealed that it has received a letter from the Consumer Financial Protection Bureau (CFPB), warning of potential enforcement action and possible litigation.

Central to this issue is a lawsuit from last year, in which customers accused Capital One of not clearly communicating the introduction of a new "360 Performance Savings" account. According to the customers, this new account offered a higher interest rate compared to an earlier product with a similar name, "360 Savings," leading to missed earnings.

Capital One maintains that it had the contractual authority to adjust interest rates at its discretion and argues that details about the new savings account were always publicly available on its website. Despite these assertions, the company is preparing for potential legal challenges from the CFPB.

The timing of this probe is particularly sensitive for Capital One, which is currently awaiting regulatory approval for its $35.3 billion acquisition of Discover Financial Services. This acquisition has the potential to significantly transform the payments landscape. However, it has also attracted scrutiny, with New York Attorney General Letitia James recently announcing an investigation into whether the deal violates state antitrust laws.

The Wall Street Journal was the first to report on Capital One's disclosure regarding the possible CFPB enforcement action. Both Capital One and the CFPB have yet to provide further comments on the matter.