Top Class Actions  |  December 7, 2020

Category: Closed Class Actions

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This settlement is closed!

Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!

Woman uses internet banking on tablet - Dave banking app

UPDATE 2:

  • An appeal was filed in this case on June 24, 2021.

UPDATE:

  • A judge granted final approval to this settlement May 24, 2021.
  • Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

Chime digital bank has agreed to pay $1.5 million to resolve allegations that a 2019 service disruption caused its users financial damages. The settlement deal provides payments of up to $750 as compensation for resulting losses.

The settlement benefits individuals who were unable to access their Chime deposit accounts between Oct. 16 and Oct. 19, 2019, due to a service disruption.

Chime’s website says the company was built with a goal of “protecting” its members and “helping them get ahead.”

“That means we don’t profit off of you,” the site says. “We profit with you: every time you use your Chime debit card, we earn a small amount from Visa (paid by the merchant).”

The company is largely fee-free, charging only a $2.50 when a member takes out cash at an out-of-network ATM or makes “an over-the-counter withdrawal.”

Chime also says its customers can get paid “up to 2 days early” when using direct deposit and can help people grow their savings “automatically.”

The recent settlement resolves claims from plaintiffs Ryan Richards, Ruba Ayoub, Brandy Terbay and Tracy Cummings in their Chime class action lawsuit.

According to plaintiffs, their deposit accounts experienced intermittent disruptions between Oct. 16 and Oct. 19, 2019.

As a result of these outages, the plaintiffs and 5 million other Chime customers were allegedly prevented from accessing their accounts for several days. In some situations, users were reportedly denied their only source of money.

“During the Service Disruption, Plaintiffs and Class members were unable to spend or withdraw their funds from their accounts needed for the basic necessities of life, such as food, clothing, shelter, and medicine,” the Chime digital bank class action lawsuit contends.

The plaintiffs argued these service disruptions caused financial injuries in the form of late fees on bills and other charges.

Around 4,000 customer tweets were reportedly found on Twitter following the disruption, detailing the ways in which the customers were affected by the outages. One consumer was reportedly forced to leave groceries at the store because they lacked access to their funds.

Despite the widespread outage, Chime allegedly failed to warn its users of the issue. Instead of contacting its consumers through email, telephone or even the Chime digital bank app, the company reportedly communicated solely through Twitter.

Plaintiffs in the Chime digital bank class action lawsuit argued the bank violated the law with its negligent actions. Chime has not admitted any wrongdoing but has agreed to resolve the claims against it in a settlement deal worth at least $1.5 million.

The settlement provides reimbursement for Class Members in two tiers, depending on the losses they sustained and the proof they may have.

Tier One compensation provides cash payments of up to $25 for Class Members who suffered a loss as a result of the disruption but do not have proof of these losses. Tier Two provides higher payments of up to $750 for consumers who can provide documentation of their losses.

In order to benefit from the Chime digital bank settlement, Class Members must file a valid claim form by Feb. 15, 2021. In order to submit a claim for reimbursement, Class Members must include documentation of their losses with their claim form.

The deadline for exclusion and objection is Feb. 1, 2021. The final approval hearing for the Chime digital bank class action settlement is April 1, 2021.

Who’s Eligible

Individuals who were unable to access their Chime deposit accounts between Oct. 16, 2019, and Oct. 19, 2019, due to a service disruption.

Potential Award

Up to $750 based on provided documentation.

Tier One compensation provides cash payments of up to $25 for Class Members who suffered a loss as a result of the disruption but do not have proof of these losses. Tier Two provides higher payments of up to $750 for consumers who can provide documentation of their losses.

Cash payments will reduced by any money Class Members have already received from Chime in connection with the service outage.

Proof of Purchase

Documentation of losses (receipts, voided checks, bank statements, detailed narrative description, etc.)

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

02/15/2021

Case Name

Richards, et al. v. Chime Financial Inc., Case No. 4:19-cv-06864, in the U.S. District Court for the Northern District of California

Final Hearing

04/29/2021   UPDATED

Claims Administrator

Richards v. Chime Financial
c/o Epiq
P.O. Box 6006
Portland, OR 97208-6006
1-855-917-3581

Class Counsel

John A. Yanchunis
Patrick Barthle
MORGAN & MORGAN COMPLEX LITIGATION GROUP

Joshua H. Watson
CLAYEO C. ARNOLD PLC

Defense Counsel

Abigail Heather Wald
Thomas Patrick Brown
Sean David Unger
PAUL HASTINGS LLP

Frederick B. Burnside
DAVIS WRIGHT TREMAINE LLP

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96 thoughts onChime Digital Bank Outage Class Action Settlement

  1. Karma is a b@#$+ says:

    I have 70 pieces of evidence to support my claim Oct 16-19 2019 .just keep in mind if you didn’t receive any service disruptions around this time and you still try to get the $25 you can get this coming back on you from your past and it is a felony .. if you were in part effected by this service disruption i understand how hard stuff is sometimes in life especially when you don’t have access to your funds and i just want to say that i feel you as a fellow american and fellow man/woman. Things are bound to get better let’s atleast hope so pandemic is causing a lot of desperation in ppl and it’s not right that you take from your fellow man that has earned his money through whatever means .. if you steal from others your karma is already going to come back on you times 10 just keep in mind the devil has no mercy on those who deserve it.

  2. Anna Senter says:

    So you feel like a big boy giving your money to someone else to hold for you at a “real bank” thinking both concepts are any different.. is the epitome of a loser.

  3. Mary R Baker says:

    Please add me. I do quality. Thank you g

  4. Courtney says:

    I had around 3 thousand dollars up and disapear out of my savings account. Mind you no one can transfer or touch my savings account without me moving it from one account to another inside the app Wich i didn’t do. I went to sleep one night with 200 in my spending account and 3 thousand in my savings account and woke up the next morning with my balance allert that said I had 0 dollars in either one. So i logged into my account and saw a bunch of small transactions from all over the world and reported that and my savings missing without me having touched it. All of the sudden it no longer showed any of the small transactions and they replied they would look into it. It has been over 6 months and they won’t reply to any emails and they keep taking small amounts anytime i have money come thru that account its totaled to over 4 thousand dollars at this point and I file a new claim every time but nothing gets done. Somehow they took almost 200 recently and left my account negative that amount when I’m only allowed to overdraw 70 dollars so how could it possibly be negative 200 if it wasn’t done from the inside. I’m looking into sueing them now because that money was my only savings i had and they took everything from me and refuse to fix what they did. So anyone interested in using them save yourself the trouble and choose another bank.

    1. Denice Sherman says:

      Last year I had been hacked for a total over $4000. They took my income tax the day it hit, my stimulus the day it hit, several paychecks as soon as they hit. It was a fight every time & weeks waiting on my money to be deposited after filing a claim for each. They will deny any wrongdoing from someone inside but funny all the hacks happened as soon as money hit my account. I now have a brick & mortar bank & use my Chime as back up. If there is money in my Chime account it stays turned off until I am ready to use it.

    2. Jesse P says:

      That’s awful. I recently I tried to do a Mobil check deposit for my tax refund check. This was on Friday March. 12, 2021. It took a few mins then I got a reply saying the full amount would be accessable the the following day. Awesome right? Well on Saturday the 13th the inquiry updated saying availability would be on Sunday the 14th. Then on Sunday same thing stating Availability Monday the 15th. I figured its just because of the weekend no big deal. On Monday evening I received an email saying the check was rejected because they do not honor cashiers checks? That I could take it to another bank and cash it with no problems. Its now Saturday. The 20th 2 other banks said when they ran the check it was stopped stating that it has already been cashed through bancorbank. I tried to call chime and Bancorp with no luck. One teller also tried and could not get through. Just told to use the mobile app to speak with a representative. They stated that if the check was rejected then it wasnt cashed. And that my dispute is solved and no further action will be taken. The check still UN cashable. Now I feel for those affected by the 3 day system down issue i really. I have read many many reviews of Chime bank stealing peoples money I don’t understand why nothing is being done about hundreds of thousands of dollars being taken. Im going to call and submit all my screenshots and paperwork ive collected to the IRS on Monday. Hopefully that will get something going to help. Small amounts were taken from my account as well from random bogus places that do not exist. Nothing is being done with them either. I just noticed when I had the issue with this check. I started really looking closer at my account ranges from 5-48.00 at a time so far but over the course of a year it adds up. Good luck to everyone!

  5. Robert Goudin says:

    Add me please

  6. Sam says:

    So I don’t think my account had issues around 10/16/19 through 10/19/19 but I’ve always had issues to were they would freeze my account and I could not pay my bills, can I still file a claim?

    1. kyla is a boss says:

      no. you dont qualify for this at all

  7. Kayla Weidow says:

    I experienced issues with my chime checking during this time frame and never received a post card with any ID number. Can you add me to this settlement, please? Thanks in advance.

  8. Shari Lamas says:

    Really Why don’t you shove your real bank straight up your well you know the rest, not everyone can go to a “ real bank “ plus they are overrated especially now with pandemic bull shit , some people can’t nor do they want to use a local branch and to be honest that doesn’t make anyone a loser . You make yourself look like a loser by even opening your mouth in the first place don’t like what you read move the f$&! On and get out the way

  9. Doncella Jenkins says:

    Please add me

  10. John says:

    THE POST SAYS “Cash payments will reduced by any money Class Members have already received from Chime in connection with the service outage.”

    ITS perjury to file fot the 25.00 again

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