CFPB Requires Chime to Pay $4 Million for Delays Refunding Bank Account Balances

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  • The CFPB issued a consent order with fintech company Chime Financial, Inc., to resolve allegations that it failed to timely refund customers after their accounts were closed, in violation of the Consumer Financial Protection Act of 2010.
  • According to the consent order, Chime allegedly took longer than 90 days after consumers’ accounts were closed to issue refunds to thousands of consumers, rather than issuing the refunds within 14 days as required by consumer account agreements.
  • Under the terms of the consent order, Chime must pay at least $1.3 million in consumer redress and $3.25 million in civil penalties, among other relief.
  • We previously reported on the CFPB’s settlement with Chime d/b/a Sendwave to resolve allegations that it deceived consumers about its remittance transfer service through its Sendwave mobile app.
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