CFPB issues $4.55 million order against fintech company Chime for delayed refunds

On Tuesday, the CFPB issued an order against Chime Financial, finding that it failed to timely refund consumers’ balances after they closed their accounts. Chime, a financial technology company, is not itself a bank, but partners with regional banks to provide certain mobile banking services.  This model deprives consumers of many of the protections of banking laws. The order levies a $3.25 million civil penalty and requires payment of at least $1.3 million to consumers.

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