The CFPB is suing Capital One for allegedly misleading consumers about its offerings for high-interest savings accounts.

The CFPB is widely seen as a key ally of American consumers, but critics say it costs too much and stifles innovation.

The government’s consumer watchdog sued Capital One on Tuesday for “cheating” customers out of billions in interest payments. The Consumer Financial Protection Bureau (CFPB) accused the banking

The Consumer Financial Protection Bureau accused the bank of “cheating” customers out of more than $2 billion by misleading them about interest rates.

Federal regulators said in a lawsuit on Tuesday that the giant bank deliberately underpaid savings account interest, even as rates rose.

The bank experienced a “technical issue” with a third-party vendor this week, impacting some account services like deposits and payment processing.

A power outage and hardware failure at fintech FIS last week delayed deposits and payments at 27 banks, including Capital One.

Capital One is defending itself from the CFPB's claims that it cheated customers out of billions of dollars in interest payments.

Third-party vendor FIS blamed a local power loss and hardware failure for the issue, which Bank of Oklahoma said affected more than two dozen financial institutions.

The Consumer Financial Protection Bureau is suing Capital One, which it says kept customers in the dark about higher-yielding savings accounts.

The Consumer Financial Protection Bureau, or CFPB, is a government agency that oversees the consumer finance industry, including banks, lenders and other financial institutions.

Capital One Financial reported a 60% rise in fourth-quarter profit on Tuesday, as a higher income from interests helped the consumer lender. Consumer spending has remained strong on hopes of a soft landing for the economy and falling interest rates,