Chime Financial Settles for $4.55 Million Over Delayed Refund Practices

The settlement includes a $3.25 million fine and at least $1.3 million in customer redress following a CFPB investigation into refund delays.

Chime Financial was penalized for not processing refunds within the promised 14-day period, affecting thousands of customers.
The delays, caused by a third-party vendor issue between 2020 and 2021, led to significant customer inconvenience.
CFPB emphasizes that federal laws must be adhered to by rapidly growing fintech firms like Chime.
Affected customers will receive a minimum of $150 if their refund was delayed beyond the specified timeframe.
The settlement comes as Chime considers an IPO, highlighting its profitability despite regulatory challenges.