Capital One Resolves Outage, Restores Account Functions for Most Customers

Capital One

Capital One announced Saturday that it has made “substantial progress” in addressing a significant outage that disrupted customer access to accounts earlier this week. The bank confirmed that account functions and pending transactions have been restored for most users after widespread problems.

Capital One had acknowledged the outage on Thursday, attributing it to a problem with a third-party vendor. According to DownDetector, more than 2,100 customers reported problems on Thursday morning, with reports peaking on Friday, and then subsiding by Saturday afternoon. Most complaints, about 90%, were related to problems with direct deposit, including delays in accessing paychecks and payments. Others reported difficulties logging into their accounts through the Capital One app.

The bank responded to customer concerns on Thursday, assuring that it would cover “all reasonable fees” caused by the outage and expected to resolve the problem by Friday morning. The vendor involved with the disruption, Fidelity Information Services, later confirmed that the problem resulted from a local power outage near one of its data centres.

The incident follows a similar outage at Citibank earlier this week, where customers faced technical problems including fraud warnings. Citibank resolved those problems by Friday.

The disruption at Capital One also comes amid regulatory scrutiny. The Consumer Financial Protection Bureau recently accused the bank of withholding more than $2 billion in interest from customers by freezing rates on its “360 Savings” accounts and limiting access to high-yield options. Capital One has denied these allegations.

While the immediate technical issues have been resolved, the situation underscores the importance of maintaining customer trust and addressing ongoing regulatory challenges.

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