By Emily Dattilo

Shares of Capital One Financial were trading higher after the Consumer Financial Protection Bureau dropped its enforcement action against the bank.

"The Plaintiff, Consumer Financial Protection Bureau, dismisses with prejudice this action against all Defendants," a legal filing reads.

Capital One stock gained 1.6% to $199.90 in trading Thursday. The S&P 500 was down 0.4%.

"We welcome the CFPB's decision to dismiss this action, which we strongly disputed," a Capital One spokesperson told Barron's in an email. The CFPB did not immediately respond to a request for comment.

For background, last month, the CFPB accused Capital One of illegally misleading millions of consumers, keeping them from receiving more than $2 billion in interest.

"The CFPB alleges that Capital One promised consumers that its flagship '360 Savings' account provided one of the nation's 'best' and 'highest' interest rates, but the bank froze the interest rate at a low level while rates rose nationwide," the CFPB said in a press release at the time.

"Around the same time, Capital One created a virtually identical product, '360 Performance Savings,' that differed from 360 Savings only in that it paid out substantially more in interest -- at one point more than 14 times the 360 Savings rate," the agency continued, adding that the company didn't notify account holders about the better-paying accounts.

Write to Emily Dattilo at emily.dattilo@dowjones.com

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February 27, 2025 12:30 ET (17:30 GMT)

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