Chime money transfer overview:
- Who: Chime Inc. was fined nearly $3 million related to remittance transfers on its Sendwave app by the Consumer Financial Protection Bureau (CFPB).
- Why: Chime violated the Electronic Fund Transfer Act by making customers sign away rights, not following required procedures and making false and misleading claims about the timing and cost of transfers.
- Where: The allegations came from the CFPB’s Washington, D.C., office.
Editor’s note: A previous version of this article included a link to an article about Chime Financial. Chime Financial is separate from the company in this article, which is Chime Inc., and has no relevance to the CFPB’s allegations or actions in this case.
Chime Inc. must pay nearly $3 million for its actions related to remittance transfers through its Sendwave app.
The Consumer Financial Protection Bureau (CFPB) said that Chime violated the Electronic Fund Transfer Act (EFTA) by making customers sign away rights, not following required procedures and making false and misleading claims about the timing and cost of transfers.
“Sendwave put illegal fine print into their contracts and tricked people who were sending money to their family overseas,” CFPB Director Rohit Chopra says. “The CFPB is carefully watching companies launching mobile payment transfer apps seeking to gain an unfair advantage over their law-abiding competitors.”
The EFTA requires that remittance transfer providers clearly disclose both fees and fund availability for transfers along with investigating errors in transfers.
The CFPB says the company made misleading claims about making transfers “instantly,” in “30 seconds,” or “within seconds” along with not being direct about fees involved and not investigating transfer errors.
Chime money transfers from the United States to Nigeria were advertised as taking place “with no fees” during 2021 and 2022 but consumers were charged fees.
Chime Inc. forced to pay nearly $1.5M in CFPB fines, $1.42M in compensation to customers
Chime was ordered to pay $1.3 million to compensate customers who were made to pay fees, $124,000 to customers who were incorrectly told the date fees would be available and a $1.5 million fine to the CFPB.
The allegations also included claims that its Sendwave disclaimer violated EFTA. Sendwave made customers agree to hold the company harmless against lawsuits, claims, judgments, liabilities, losses, costs and expenses before allowing remittance transferred through the app.
In a statement to Top Class Actions, Sendwave says a fair and positive customer experience is central to Sendwave’s product and services and it will ensure that the requirements of the consent order are implemented.
“Sendwave takes its responsibility to customer protection very seriously, working closely with regulatory, financial and consumer protection authorities in the United States and beyond,” the statement says. “To lay even stronger foundations for the future, Sendwave has increased its focus on safeguarding customers while building a fast, reliable and convenient mobile payments transfer app for its growing customer base in the years to come.”
Have you made a remittance transfer using Sendwave? Let us know in the comments.
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547 thoughts onChime Inc. to pay $3M over money transfer deception allegations
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Chime took 2742.00from my account 6 times they denied my dispute to get my money back
I knew it there was a couple times I had money taken out for subscriptions that I no longer subscribed to and they wouldn’t refund my money I swear they’ve taken like $500 from me from over the years
Add me to the settlement I want my money back
Can’t trust stride bank or chime it s stealing mimey
They definitely are a scam.They’re supposed to help get my credit.Built up with the chime’s credit builder.All it did was boost my credit d*** when I started at a 560 and now I’m at a 2 and all I did was just take money from my account and put it into some secure account.I have no access to so they’re definitely a rip off and they got they’re getting money from me and I don’t know how to stop it
I am low vision blind and I have chime . And one thing I noticed when I got my $20,000 with a back pay the deductions the little red thing underneath my my purchases disappeared and money started moving on its own to accounts by itself I catch it three days later thousands at a time also too the enlisted thing with the giving people time for hundred dollars for my friends said it happened to their accounts but I didn’t have any emails when you like that on my phone so I’m not sure I’m looking blind but I do know that money moved and I think might start to disappear little by little but it’s no longer on my additions for my register that’s on there so they just took it away and I called to ask him what happened they hung up. The representative hung up no reason just as much I need an answer to give me something he says you might have transfer from your app I said no it wasn’t I wasn’t on my phone that day I was sleeping and I didn’t check my app to 3 days later to see my money came in and the day that the money was transfer my money came in I didn’t know it at the time
I had proof of that I didn’t owe this merchant and they still took my money paychecks and allll and made my credit builder neg I want my money back
Me to I purchase from a scam site and chime never secured my money in dispute. When I told them seller was sending product. Never sent. Chime owe me $105.50 never secured my money or return back and kept playing games switching me from person to person. Give me back my money chime you crooks.
How do i file a claim
I had my card stolen and the perpetrator took my whole income tax check that was deposited in my account. When I noticed my card and my phone were taken from my apt I notified chime. They locked my account and I disputed charges adding up to around 2000.00 I sent in police report as well as a written statement claiming the transactions made were unauthorized. I did everything chime asked and they said that there was no error. I had them reopen the disputes over and over again. I even called the merchants to see if chime contacted them during their investigation and they advised me that they were never contacted by chime. My account should of been protected by the Electronic debit transfer act because my cad had been stolen and my account hacked. I needed my money and for chime to keep putting me off and saying it was authorized was a slap in the face. Then to top it all off chime closed my account after I disputed my claims and said I violated their agreement which I did no such thing .I want to start a class action suit against chime they didn’t follow their procedures like they claim on their website by no means. They are liars and crooks and they need held accountable I know I’m not the only person chime has done this to.