Consumer complaint received 2023-09-13
Company: CAPITAL ONE FINANCIAL CORPORATION
State: MA
Product: Checking or savings account
Sub-product: Savings account
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
In XXXX, I opened an XXXX XXXX XXXXXXXX account. This product was advertised as an easy-to-use account with a higher interest rate which would vary based on prevailing interest rates, and I was pleased with the account and customer service. Capital One acquired XXXX in XXXX and kept the same product with the variable interest rates which fluctuated and I continued to use the product. 

Then, in XXXX, Capital One created a new product, " Performance XXXX '', which had these characteristics. For its existing customers, many of whom had, like myself, been with Capital One or its predecessors for more than a decade ( XXXX  years, in my case ), our accounts were not upgraded, but instead interest rates were slowly dropped until they were pegged at 0.3 % in XXXX of XXXX, while the Performance rate was 0.4 % based on historically low interest rates. We were never contacted and told there was a new product available, and many of us kept our savings with Capital One in these accounts, and hardly noticed the difference between 0.3 % and 0.4 % when interest rates were historically low. 

Note that I have hundreds of emails from Capital One dating back more than a decade, but was never once emailed about this new, and more advantageous product comparable to what I originally signed up for and used for more than a decade, see below for additional details. 

Once rates began to climb in late XXXX, the rates for Capital One 's most loyal customers stayed low. In fact, today, Capital One Performance 's rate is a competitive 4.3 %, while the original account is just 0.3 %. By keeping customers in this other " legacy '' product, Capital One has avoided paying out interest on customers ' savings, all while lending out this money at prevailing rates. This is an extremely deceptive marketing practice, and while some news outlets have called out Capital One on this practice, you have not changed it, or made amends, and gone as far as insisting that 0.3 % is a " high interest rate '' when, in the current climate, it is certainly not. 

I have gone through my previous statements and reports of Capital One 's interest rates to document additional interest which would have accrued had Capital One not downgraded my account. According to my calculations ( XXXX XXXX XXXX # XXXX ) my balance would be approximately {$850.00} higher. However, I do not have the same recordkeeping as I'm sure Capital One does, particularly involving the dates of interest rate changes. 

I called Capital One about this discrepancy and spoke to XXXX ( employee ID XXXX ). My case was escalated and I spoke with XXXX XXXX XXXX ) who said that my case had been reviewed and nothing could be done. Additionally, he said this decision was final, and that Capital One received many of these complaints and denied them all. He said that I had not been misled, even though the bank changed XXXX word between these accounts and sent me no information that there would be changes. 

I have attached a sample of emails sent by Capital One, none of which mentioned that there was a better product available.

Company response to consumer: Closed with explanation