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. Rhonda Gayle Turner Garner says:

    I sent an Attached signed Affidavit and Claim form from which I believe was an “INSIDE JOB” from someone WITHIN CHIME itself.

    Representative “Daniel” contacted me via the Chime’s Customer service number stating that he was from the FRAUD department saying that he “noticed” some activity on my account. He then offered to “reset” my password. After the call disconnected, I got a notification from Chime stating that my balance was $2.66! At that time, I realized that I had just been SCAMMED! He KNEW your SYSTEM inside and out! From your TOLL FREE Phone number to CHIME’s TEXT messaging system to the eMail. He has since ERASED the Original text that I had responded to. The message stated that the funds were transferred to a “NICOLE S.” I know no such person.

    AFTER CHIME had REVERSED my funds, they SUSPENDED my account and now I have NO ACCESS to my funds, nor will they FORWARD a check to my address.

    Whatever CLASS ACTION LAWSUIT that you have against them… COUNT ME IN!!!

    1. Corisha says:

      Same thing happened to me March 13 !! Currently still trying to get my money back

    2. Jonathan marrero says:

      If you know anyone who’s fileing for a class action lawsuit please let me know they are doing a lot of illegal things

    3. Michelle Pacheco says:

      Im going thru this now and also they frauded me a lil over 4000 dollars im beyond pissed off

  2. Sharon Pia says:

    I never received anything about this lawsuit. I was definitely affected This is bs. I never was contacted

  3. Luintisha merritt says:

    I have proof of documents on those exact dates. I never received a letter or anything about this settlement.

  4. Rick Probst says:

    Hello I am a Chime customer and have been for the past 6 or so years and I knew Nothing about this lawsuit until now amd its too late and i didn’t receive any payments from I like everyone else did is there a way I can still

    1. Porkchop says:

      I think there’s giving out the money already..

  5. JAMIE LEE BROLLIER says:

    How can I get an email address for this

  6. Randall L Tripp says:

    Add me to the list please, thank you!!

  7. willie sinclair says:

    Please include me in this class action lawsuit I do remember wondering why my chime was not working

    1. Porkchop says:

      It’s to late… money 🤑 is the mail 💌

  8. Ronda Ross says:

    Please add me to this claim, I was unable to use and gain access to my chime account during this time.

  9. Dan Stafford says:

    Once I purchased visa gift cards that were from Chime , I ended up tossing them in the trash -,
    Worthless!
    I do not qualify for this lawsuit But y’all put aw hurt on’em

  10. hahaha says:

    You’re nuts man, calm down.

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.