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Chime fined for delayed refunds

Chime fined for delayed refunds

Digital banking giant Chime will pay more than $4.5 million to settle with the Consumer Financial Protection Bureau for illegally delaying consumer refunds.

Thousands of Chime users waited for weeks or even months for balance refunds after closing their accounts with the firm.

According to the CFPB, this "inflicted significant financial harm" with some of those affected having to turn to expensive forms of credit to cover bills.

Chime says that most of the delays were caused "by a configuration error with a third-party vendor during 2020 and 2021".

Chime will pay at least $1.3 million in redress to consumers, and pay a $3.25 million penalty into the CFPB’s victims relief fund.

CFPB director Rohit Chopra says: “Fast-growing financial firms must treat their customers fairly and understand that federal law is not a suggestion.”

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