The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

Biden administration orders online banker Chime to pay $4.55 million over delayed refunds to customers

by admin May 9, 2024
May 9, 2024
Biden administration orders online banker Chime to pay $4.55 million over delayed refunds to customers

The Biden administration has told the online banking group Chime it must pay $4.55 million for failing to issue refunds in a timely manner to customers who had closed their accounts.

The Consumer Financial Protection Bureau announced Tuesday that Chime must provide at least $1.3 million in compensation to consumers who were harmed and pay a $3.25 million penalty for continually failing to debit consumers in a timely manner after they had closed their accounts with outstanding balances — including thousands of instances when Chime waited at least 90 days.

“Chime’s customers had to wait weeks or months for access to their own money and were forced to use alternative funds to cover their essential expenses,” including running up credit card balances, CFPB Director Rohit Chopra said in a statement. “Fast-growing financial firms must treat their customers fairly and understand that federal law is not a suggestion.”

In many cases, affected customers could not cover basic living expenses, the CFPB said.

It said Chime is responsible for processing account payments, though it acknowledged it does so by contracting with a third-party payment processor.

It said Chime is also responsible for nearly all consumer communications concerning accounts, as well as how they are serviced, including with its partner banks.

In a statement, Chime said the majority of the delayed refunds were caused by a ‘configuration error’ with a third-party vendor in 2020 and 2021.

It said its settlement agreement with the CFPB “reflects our belief that the timely handling of customer matters is critical, even amid the pandemic’s unique challenges.”

‘When Chime discovered the issue, we worked with our vendor to resolve the error and issued refunds to impacted consumers,’ it said.

‘We share the Bureau’s goal to create a more competitive and accessible financial landscape that is good for everyday consumers. We look forward to continuing in this mission and are pleased to have resolved this matter,’ it said.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Summer box office bust? This season’s movie slate could put up the lowest haul in decades
next post
Dave & Buster’s plan to allow betting on arcade games draws scrutiny

Related Posts

Judge allows lawsuit over Burger King’s Whopper ads...

May 8, 2025

Aviation incidents seem to be proliferating, but experts...

March 10, 2024

Delta says the Olympics will cost it $100...

July 13, 2024

Becoming a nurse during Covid, a former producer...

July 8, 2024

Women’s basketball league Unrivaled signs uniform deal with...

December 11, 2024

The lunch rush is dead as Americans live...

May 20, 2024

Tesla’s Cybertruck recalled for a fourth time over...

June 27, 2024

UiPath to lay off 10% of workforce in...

July 10, 2024

Target will stop accepting personal checks

July 9, 2024

Meta’s head of AI research announces departure

April 2, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Ben & Jerry’s co-founder resigns, claiming parent company Unilever ‘silenced’ its campaigning

      October 10, 2025
    • The Real Drivers of This Market: AI, Semis & Robotics

      October 10, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      October 10, 2025
    • Could Trump win the Nobel Peace Prize after Israel-Hamas deal?

      October 10, 2025
    • RFK Jr shocked over pregnant moms protesting Trump with Tylenol: ‘Pathological’

      October 10, 2025
    • Top insurance CEO in the hot seat after scathing ad campaign exposes China ties

      October 10, 2025

    Categories

    • Business (1,416)
    • Politics (4,700)
    • Stocks (1,699)
    • Uncategorized (45)
    • World News (1,409)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved