Capital One Faces Lawsuit Over Alleged Debanking of Gun Store

Capital One is facing renewed legal scrutiny and allegations of politically motivated debanking after United Gun Shop of Rockville, Maryland, filed a lawsuit against the bank. The gun retailer claims Capital One, via payment processor Melio Payments, blocked its business transactions in 2025 and 2026 solely due to its involvement in the firearms industry, rather than any illegal activity. This case has attracted attention from conservative watchdog group Consumers’ Research, which criticized the bank for discriminating against customers with non-leftist views. Simultaneously, Capital One is dealing with separate litigation in Florida involving the Trump Organization. Although a federal judge dismissed the Trump family's initial complaint regarding the closure of hundreds of accounts post-January 6 as deficient, he allowed them until July 2, 2026, to refile with stronger evidence. Capital One denies all discriminatory intent, asserting that account closures are legitimate business decisions based on legal and regulatory compliance. The Office of the Comptroller of the Currency is currently reviewing Capital One and eight other large banks as part of a broader inquiry into these practices amidst President Trump’s executive actions aimed at curbing debanking.