Chime must pay millions over long refund wait times

A popular money app has to pay millions for allegedly waiting a long time to give many consumers their money when they closed their accounts.

The Consumer Financial Protection Bureau says Chime made thousands of consumers wait weeks or even months for the refunds. The Bureau said some people had to rely on expensive forms of credit to pay bills in the meantime.

The agency is ordering Chime to pay consumers more than $1 million and pay a $3 million penalty.

Action 9′s Jason Stoogenke emailed Chime, who said the settlement “reflects our belief that the timely handling of customer matters is critical, even amid the pandemic’s unique challenges.”

Over the years, Chime users have complained to Stoogenke about other issues. The most common is users saying someone stole money out of their account, and that the company held them responsible for the loss.

The company reimbursed multiple people after Stoogenke got involved.

Read the full statement from Chime below:

“Chime was founded on the belief that basic banking services should be helpful, easy, and free. Today, together with our bank partners, we offer easy-to-use products that allow everyday people living paycheck-to-paycheck to bank with no monthly, overdraft or hidden fees, get paid early, and safely build credit. Our innovations have disrupted the status quo in banking, empowering consumers with more control over their financial lives.

“Our settlement agreement with the CFPB reflects our belief that the timely handling of customer matters is critical, even amid the pandemic’s unique challenges. In this case, the majority of the delayed refunds were caused by a configuration error with a third-party vendor during 2020 and 2021. When Chime discovered the issue, we worked with our vendor to resolve the error and issued refunds to impacted consumers. 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.”

(WATCH BELOW: Lose money in a Zelle scam? Your bank may now have to refund you)

Lose money in a Zelle scam? Your bank may now have to refund you

©2024 Cox Media Group