Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

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
Former MGM Grand casino president to be sentenced for failing to report bookie’s bets
next post
Disney to limit Marvel movie releases each year as it doubles down on ‘quality’

Related Posts

Over 3 million on Social Security may wait...

January 30, 2025

Tesla’s Chinese rival Nio launches a new brand...

May 17, 2024

Microsoft to cut 3% of its workforce

May 14, 2025

Boeing expects a 2024 cash burn, slow recovery...

May 25, 2024

Data center boom in world’s largest market isn’t...

May 3, 2025

UnitedHealth CEO says U.S. health system ‘needs to...

January 18, 2025

The first Fed interest rate cut in years...

July 31, 2024

Amazon workers must return to office full time,...

September 17, 2024

Tesla denies report it’s looking to replace Elon...

May 3, 2025

Starbucks imposes new limits on what baristas can...

April 24, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


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

    Recent

    • Lagging Mid-cap ETF Hits Moment of Truth

      June 24, 2025
    • The Best Five Sectors, #24

      June 24, 2025
    • This Week’s Earnings Watch: Turnarounds and Momentum Plays

      June 24, 2025
    • AI Stocks Ignite Again—Where Smart Money is Heading Next

      June 24, 2025
    • Iran retaliates with missile attack on US base in Qatar, Pentagon reports no casualties

      June 24, 2025

    Categories

    • Business (994)
    • Investing (2,452)
    • Politics (3,047)
    • Stocks (1,091)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, 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 sportinvestorsleague.com | All Rights Reserved