Businesses owned by President Trump sued Capital One, accusing the banking giant of terminating hundreds of their accounts in 2021 over political bias.
Eric Trump, the second son of Mr. Trump, is also listed as a plaintiff in the state case filed Friday in a Miami-Dade courthouse.
The complaint alleges that the Trumps got notice on March 8, 2021, that Capital One was closing their accounts, which had millions of dollars in them at the time.
The lawsuit says the Trumps were not given a reason for the account closures initially, but later learned it was due to political beliefs.
The bank gave them until June to make changes before accounts were terminated, according to the complaint.
“Plaintiffs have reason to believe that Capital One’s unilateral decision came about as a result of political and social motivations and Capital One’s unsubstantiated, ‘woke’ beliefs that it needed to distance itself from President Trump and his conservative political views. In essence, Capital One “de-banked” Plaintiffs’ Accounts because Capital One believed that the political tide at the moment favored doing so,” the Trump lawsuit read.
The closure notice came roughly two months after the Jan. 6, 2021, riot at the U.S. Capitol, during which Trump supporters protested the 2020 election results.
De-banking is a practice where banks close accounts typically over calculating the risks involved with the client or business. But conservative critics have claimed financial institutions are closing accounts and de-banking clients due to political differences.
Eric Trump said that the lawsuit seeks to hold the financial institution accountable for closing more than 300 of their accounts.
According to his lawsuit, de-banking has increasingly become a problem and lawmakers have acknowledged there needs to be a solution.
Sen. Tim Scott, South Carolina Republican, has introduced the Financial Integrity and Regulation Management (FIRM) Act, which aims to restrict de-banking for reputational reasons.
“By filing this lawsuit, we seek to hold Capital One accountable for the millions of dollars in damages they caused, not just to our company, but to the many dozens of properties, hundreds of tenants and thousands of Trump Organization employees who relied on these accounts for their livelihoods,” Eric Trump said in a statement posted to his social media accounts.
“Businesses should not be targeted or punished for their political affiliations,” he said. “The actions taken by Capital One and other major financial institutions represents a dangerous precedent that could threaten the operations of countless businesses across the nation, particularly those with a strong and independent voice.”
In a statement to The Washington Times and other news outlets, Capital One denied the lawsuit’s claims.
“Capital One has not and does not close customer accounts for political reasons,” a spokesperson said.
