Capital One announced on Saturday that it had made substantial progress in resolving a widespread outage that impacted account functions and transaction processing for many of its customers. The outage, which began on Thursday, caused thousands of customers to report problems accessing their money online throughout the week. The bank attributed the outage to a technical issue with a third-party vendor, which significantly affected services such as deposits and payment processing.
More than 2,100 customers initially reported problems on Thursday morning, with the number of reports peaking by Friday. However, by Saturday afternoon, the volume of complaints had decreased substantially. Approximately 90% of the issues reported involved problems with direct deposits, leaving some customers unable to access recent paychecks.
Additionally, several customers experienced difficulties accessing their accounts via the Capital One app. In response to the wave of complaints, Capital One stated it would cover any reasonable fees incurred due to the outage.
capital one outage update
The bank also indicated it expected the issues to be largely resolved by Friday morning. Fidelity Information Services, the third-party vendor involved, informed that the root cause of the disruption was a local power outage near one of its data centers. The company emphasized that they were in the process of restoring all affected applications.
This incident at Capital One follows another recent technical issue with Citibank, where customers received numerous fraudulent alerts earlier in the week. It also occurs days after financial regulators accused Capital One of allegedly cheating millions of customers out of more than $2 billion in interest. In a filing last year, the Consumer Financial Protection Bureau (CFPB) began investigating Capital One over its savings accounts.
The CFPB alleged that Capital One froze the interest rate for the bank’s 360 Savings accounts as deposit rates rose nationwide and prevented account holders from switching to new, higher-yield 360 Performance Savings accounts. Capital One has denied these allegations and stated that it will vigorously defend itself in court.