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Investing.com -- President Donald Trump’s company has filed a lawsuit against Capital One Financial Corp (NYSE:COF)., alleging the bank illegally "de-banked" him for political reasons. The lawsuit claims that Capital One abruptly canceled hundreds of accounts associated with Trump’s real estate business after his first term ended in 2021.
The plaintiffs, including the Trump Organization and Eric Trump, are accusing Capital One of not adhering to its proclaimed principles of honesty and fairness, as stated by Capital One’s founder, Chairman, and Chief Executive Officer Richard D. Fairbank in 2020.
On March 8, 2021, Capital One allegedly changed the dynamic of the relationship by notifying the plaintiffs that hundreds of bank accounts they controlled would be closed on June 7, 2021. The plaintiffs claim they were not provided any recourse, remedy, or alternative to this decision and that the accounts held millions of dollars belonging to them and their affiliated entities.
The lawsuit suggests that Capital One’s decision was motivated by political and social factors and the bank’s unsubstantiated beliefs that it needed to distance itself from President Trump and his conservative political views. The Trump Organization is accusing Capital One of being part of a growing trend by financial institutions in the United States to cut off a consumer’s access to banking services if their political views contradict with those of the financial institution.
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