Chime Financial, Inc., is a San Francisco-based financial technology company founded in 2012 that partners with regional banks to provide certain fee-free mobile banking services. It offers early access to paychecks, negative account balances without overdraft fees, high-yield savings accounts, etc.
According to reports, the Consumer Financial Protection Bureau (CFPB) has ordered Chime to pay $4.55 million USD for delaying customer refunds after closing their accounts. The report further states that Chime defaulted on its 14-day policy on refunds, which deprived customers of their money, forcing them to wait weeks or months to access their funds after closing their accounts.
As a result, the CFPB ordered Chime to pay at least $1.3 million to affected consumers and $3.25 million in penalties to the CFPB’s victims relief fund.
