Recent banking class actions impact Bank of America, Capital One, others

Banking class action lawsuits overview: 

• Who: Consumers recently filed class action lawsuits against Ally Financial, TD Bank and Bank of America, while the Consumer Financial Protection Bureau recently filed a lawsuit against Capital One. 
• Why: The complaints broadly revolve around data breaches, information requests, credit card terms and alleged deceptive practices. 
• Where: The banking class actions were filed in U.S. federal courts.

---

Consumers recently filed class action lawsuits against Ally Financial Inc., TD Bank and Bank of America over claims broadly revolving around data breaches, information requests and credit card terms. 

The Consumer Financial Protection Bureau (CFPB) also recently filed a lawsuit against Capital One over claims the bank and its parent company, Capital One Financial Corp., caused consumers to lose more than $2 billion in potential interest earnings on their Capital One savings accounts.

Ally Financial failed to safeguard customer info during April 2024 data breach, class action says

A consumer filed a class action lawsuit against Ally Financial in February over claims the digital financial services company failed to properly safeguard the personally identifiable information (PII) of 4.2 million customers during an April 2024 data breach. 

The class action lawsuit argues Ally Financial — along with its debt collection agency Financial Business and Consumer Solutions Inc. (FBCS) — allowed the PII of Ally Financial customers to be exposed during a data breach involving FBCS. 

“Defendants failed to adequately protect Plaintiff’s and Class Members’ PII –– and failed to even encrypt or redact this highly sensitive information,” the Ally Financial class action says.

The consumer claims both Ally Financial and FBCS failed to make sure their vendors were submitting the PII to an entity with adequate data security practices. 

Class action claims TD Bank failed to properly secure info during 2023 data breach

A consumer filed a class action lawsuit against TD Bank over claims it failed to properly secure and safeguard the PII of its customers during a 2023 data breach.

The class action lawsuit argues the TD Bank data breach was the result of a bank employee improperly accessing the personal information of some customers — and potentially providing said information to an unauthorized third party — between May and October 2023. 

“Representative Plaintiff and Class Members have suffered and will continue to suffer the continued risks of exposure of their Private Information,” the TD Bank class action says. 

The consumer claims TD Bank also waited until February 2025 to inform customers affected by the data breach, despite having known about the incident for “some time.” 

Bank of America did not properly respond to information requests, class action claims

A consumer filed a class action lawsuit against Bank of America in January over claims the bank failed to properly respond to requests for information and requests to correct errors related to borrowers’ residential mortgage loans.

The class action lawsuit argues Bank of America refused to provide call recordings to which borrowers were entitled, misled borrowers about how long the bank had to respond to requests and gave the illusion of timely responses despite not actually sending them in a timely manner. 

The consumer claims Bank of America violated the Florida Consumer Collection Practices Act and the Real Estate Settlement Procedures Act. 

Bank of America failed to honor terms of credit card offer, class action says

A consumer filed a separate class action lawsuit against Bank of America in January over claims the bank engaged in deceptive business practices by allegedly failing to honor the terms of a credit card offer.

The class action lawsuit argues Bank of America advertised terms and conditions for a credit card offer that it later refused to honor, instead applying a different offer and refusing to abide by the original terms. 

“Defendant lured Plaintiff into a contract under specific terms, only to unilaterally change the terms after Plaintiff had already started performance and without any justifiable reason,” the Bank of America credit card class action says. 

The consumer claims Bank of America violated the Massachusetts Consumer Protection Act. 

CFPB claims Capital One misled consumers about 360 Savings accounts 

The Consumer Financial Protection Bureau filed a lawsuit against Capital One and its parent company in January over claims they engaged in deceptive practices. 

The CFPB argues Capital One’s alleged deceptive practices caused consumers to lose more than $2 billion in potential interest earnings on their Capital One savings accounts.

The complaint focuses on Capital One’s 360 Savings accounts, which the CFPB argues Capital One misled consumers about while obscuring its higher-interest Capital One savings account product. 

“Banks should not be baiting people with promises they can’t live up to,” CFPB Director Rohit Chopra said in a statement.

The CFPB argues Capital One violated the Truth in Savings Act. 

Have you recently been injured by a bank? Let us know in the comments.

---

---

Read About More Class Action Lawsuits & Class Action Settlements:

• WebMD class action alleges company illegally shared users’ data with Facebook
• Kia initiates recall for Seltos, Souls due to potential engine defect
• GM initiates recall for Sierra 1500s due to grille deflector defect
• Igloo class action claims recalled coolers pose fingertip amputation hazard