(Reuters) -A major federal agency may take enforcement action against Capital One for alleged misrepresentations related to its savings accounts, the consumer lender revealed in a filing late on Thursday.
The company is responding to a letter the Consumer Financial Protection Bureau (CFPB) sent it earlier this month. The agency could also pursue litigation, Capital One warned.
At the center of the controversy is a lawsuit filed by some customers last year, who alleged that the company introduced a new “360 Performance Savings” account with a higher interest rate than what it paid to customers of another account with a identical name. 360 Savings.”
Customers claimed this discrepancy was not clearly communicated, causing them to miss out on potential profits.
Capital One said it had the contractual right to change interest rates at its discretion and that information about the new account was always available on its website.
The company did not immediately respond to a request for comment. The CFPB declined to comment.
The investigation comes as the company is awaiting regulatory approvals for its $35.3 billion acquisition of Discover Financial Services (NYSE ), which could reshape the payments industry.
Last week, New York Attorney General Letitia James said she was investigating whether the deal violates the state's antitrust law.
The Wall Street Journal first reported the company's disclosure of potential CFPB action on Friday.
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