Debanking
The Donald J. Trump Revocable Trust v. Capital One
Date: March 7, 2025
Issue: Whether Capital One violated the Consumer Protection Acts of North Carolina and Nebraska and the Consumer Fraud Acts of New Jersey and Minnesota by terminating the accounts of President Donald Trump’s businesses without providing notice.
Case Summary: President Donald Trump’s company, the Donald J. Trump Revocable Trust, and his son Eric Trump (plaintiffs) sued Capital One in a Florida State court claiming it illegally terminated Trump-affiliated accounts.
According to plaintiffs, on March 21, 2021, Capital One informed them that it would close hundreds of their bank accounts without any recourse. The complaint explained that Capitol One allegedly failed to provide advance notice before unilaterally terminating their accounts. As described by plaintiffs, Capital One “debanked” their accounts because it “believed the political tide favored doing so.” Plaintiffs claimed that Capitol One’s actions reflect a growing trend of banks denying services based on customers’ political views. As a result, plaintiffs claimed this “debanking” disrupted their business transactions and caused significant financial harm.
Plaintiffs alleged Capitol One violated the Consumer Protection Acts of North Carolina and Nebraska, as well as the Consumer Fraud Acts of New Jersey and Minnesota. Failing to justify the closures, plaintiffs alleged Capitol One used unlawful and deceptive tactics to shut down their accounts. Plaintiffs also alleged Capitol One’s “debanking” was illegal and indirectly harmed each state’s residents by discouraging political speech through the threat of losing banking relationships.
Plaintiffs asked the court to enter a judgment declaring that: Capital One improperly terminated plaintiffs’ accounts; plaintiffs are entitled to an award of costs; and plaintiffs are entitled to any other relief the court deems just and proper.
Bottom Line: Capital One’s answer to plaintiffs’ complaint is due March 27, 2025.
Documents: Complaint
