CFPB Takes Action Against Chime Financial for Illegally Delaying Consumer Refunds

Summary:

The Consumer Financial Protection Bureau (CFPB) has taken action against Chime Financial for failing to provide timely refunds to consumers when their accounts were closed. The company, with $1.5 billion in annualized revenue, processed accounts' payments and was responsible for nearly all consumer communications. The CFPB found that Chime did not issue refunds within the 14-day time frame promised, resulting in thousands of consumers waiting weeks or months to access their funds. This caused significant financial harm, forcing some consumers to seek expensive credit alternatives. The CFPB's order requires Chime to pay $1.3 million in redress to harmed consumers and a $3.25 million penalty to the victims' relief fund. Chime must also provide timely refunds to comply with the law.