Chime may owe you money if you closed your account: Here’s what you need to know
Chime, a popular fintech company, is in hot water with the Consumer Financial Protection Bureau (CFPB) for failing to refund customers in a timely manner after they closed their checking or savings accounts. According to the CFPB, Chime customers who closed their accounts had to wait three months or longer to receive their refunds, causing financial hardship for many.
As a result of this violation, Chime has been ordered to pay $3.25 million to the CFPB victim’s relief fund as a penalty and at least $1.3 million to affected customers, totaling over $4.5 million. Customers who had a balance less than or equal to $10 and did not receive their refund within 14 days will receive a $25 refund, while those with a balance of more than $10 will receive a refund calculated at a 30% annual rate, up to $150.
If you closed a Chime account since Jan. 1, 2018, and did not receive your refund within 14 days, you may be entitled to money from Chime. The company has 10 days to set up a $1.3 million fund for issuing the refunds, and affected customers can expect to receive a letter in the mail if they qualify.
To protect yourself from future banking woes, financial experts recommend having emergency savings at a separate bank from your day-to-day banking and considering keeping some money on a preloaded or prepaid card for easy access in case of a banking mishap. It’s also important to start saving for the unforeseen now and aim to save at least three to six months of essential living expenses.
If you believe you qualify for a refund from Chime but have moved since closing your account, be sure to update your mailing address with Chime’s customer service. The company is required to provide contact information specifically for questions regarding the refund within the next seven days.
Overall, this incident serves as a reminder to always be prepared for unexpected financial challenges and to have a plan in place to protect your money and assets.
