Trump Organization Sues Capital One Over Alleged Account Closures

The Trump Organization Sues Capital One Over Alleged Account Closures

The Trump Organization has initiated legal action against Capital One, accusing the bank of unjustly closing over 300 of its accounts in 2021. This lawsuit, filed in Miami-Dade County, calls for accountability from Capital One for what the Trump Organization describes as “egregious conduct.” Eric Trump, in a post on X, stated that this move by the bank is “a clear attack on free speech and free enterprise.”

According to Eric Trump, the Trump Organization had maintained a business relationship with Capital One for more than ten years before the abrupt closures. He suggested that the bank’s decision might be part of a broader trend among major financial institutions to cut ties with customers based on political views. “The arbitrary closure of these accounts, without justifiable cause, reflects a broader effort to silence and undermine the success of the Trump Organization,” he wrote.

The lawsuit asserts that Capital One’s actions were politically motivated, alleging that the bank believed such a move was in line with the prevailing political climate. It further claims that this is part of a growing pattern where banks in the U.S. deny services to consumers whose political views differ from those of the institutions.

Capital One, however, has refuted these claims, stating, “Capital One has not and does not close customer accounts for political reasons,” as reported by The Telegraph.

In related incidents, Melania Trump, in her book Melania, recounted a similar experience where her bank allegedly terminated her account and refused to allow her son Barron to open a new one post-White House, though she did not name the bank. She expressed concern over what she perceived as political discrimination.

The lawsuit emerges amid growing bipartisan scrutiny over banks using “reputational risk” as a justification for account closures. Sen. Elizabeth Warren, D-Mass., has called on President Donald Trump to address the issue of political debanking, emphasizing the need for legislative measures to prevent such actions.

Potential legislation that would prohibit banks from citing “reputational risk” as a reason for account closures is gathering support across party lines. In a recent address to the World Economic Forum’s Annual Meeting in Davos, President Trump criticized Bank of America and JPMorgan Chase for allegedly debanking conservatives, urging the banks to be more inclusive of conservative businesses.

Both Bank of America and JPMorgan Chase have denied engaging in debanking practices based on political beliefs.