Capital One Financial Corp. (COF) faced a technical issue on Thursday that disrupted customer access to accounts, payments, transfers, and deposits, causing frustration among users. In response to complaints on the social media platform X, a representative confirmed a “technical issue” impacting different functions without specifying when services would be restored.
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Capital One Attributed the Outage to a Third-Party Vendor Issue
Later that day, Capital One issued a statement attributing the problem to a third-party vendor issue. The outage temporarily affected account services, deposits, and payment processing across its consumer, small business, and commercial banking segments. The vendor, Fidelity Information Services (FIS), later disclosed that a power outage at one of its data centers was to blame for the outage. While FIS stated efforts were underway to restore services, it declined to answer follow-up questions.
The disruption began around 6 a.m. ET, according to Downdetector.com, which reported approximately 2,000 complaints. This incident follows a similar issue at Citibank (C) the day before, where customers faced difficulties accessing accounts on mobile devices and experienced delays in fraud alerts.
The outage at Capital One adds to the bank holding company’s ongoing troubles. Earlier this week, the bank was sued by the Consumer Financial Protection Bureau (CFPB) for “cheating” consumers on interest payments.
Is Capital One a Buy or Sell?
Analysts remain cautiously optimistic about COF stock, with a Moderate Buy consensus rating based on seven Buys and eight Holds. Over the past year, COF has increased by more than 50%, and the average COF price target of $204.73 implies an upside potential of 8.6% from current levels.
