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Chime Users: Close Your Account, Pocket Up to $150

Consumer Financial Protection Bureau data shows that thousands of Chime customers who closed accounts waited three months or longer to receive their refunds.

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SSI Income Limits 2024
SSI Income Limits 2024

Chime Users: You may be owed $150 if you closed your Chime checking or savings account after Jan. 1, 2018, and didn’t receive your remaining balance within 14 days.

Consumer Financial Protection Bureau data shows that thousands of Chime customers who closed accounts waited three months or longer to receive their refunds.

As a penalty, the bureau ordered Chime to pay over $4.5 million to the CFPB victim’s relief fund and at least $1.3 million to impacted customers.

In a press release, CFPB Director Rohit Chopra said Chime’s customers had to wait weeks or months for access to their own money.

Why did Chime make a mistake?

Chime was supposed to automatically refund money from closed checking and savings accounts by check if the remaining balance exceeded $1, according to the CFPB.

In thousands of cases, Chime failed to refund customers within 14 days, sometimes even 90 days.

A Chime spokesperson said that “the majority of the delayed refunds were caused by a configuration error with a third-party vendor during 2020 and 2021.”

If someone needed the money in the account to pay for basic living expenses like groceries and housing, those delays could have caused a critical financial hardship, the CFPB warned.

Payday loans or carrying a credit card balance may have been the only alternatives for some people, which can come with exorbitant interest rates.

What is Chime’s debt to you?

Chime will refund $25 if you have not received your refund within 14 days after closing your account if your balance is less than $10.

Refunds over $10 will be calculated at a 30% annual rate for the time between the refund’s due date and the day it is received, or $150.

If you qualify for a refund, Chime will mail you a letter within 10 days of setting up the $1.3 million fund.

It’s best to update your mailing address with Chime’s customer service by calling 844-244-6363 if you’ve moved since closing your Chime checking or savings account.

To process refund inquiries, the company must publish a telephone number, email address, and postal address within seven days.

Chime is not a bank; instead, it partners with other banks to provide its products and services.

The Federal Deposit Insurance Corporation insures its accounts at one of two partner banks.

What you can do to prevent future banking problems

“To mitigate risks like the one that occurred with Chime, I would definitely advise people to have emergency savings in a separate bank from where they do their day-to-day banking,” said Bola Sokunbi, a member of CNET Money’s expert review board and Certified Financial Education Instructor.

It might also be a good idea to have some money on a preloaded or prepaid card in case of an emergency.

Sokunbi recommends setting up a line item in your budget for saving every time you receive a paycheck if you have not already done so.

Saving even a small amount can help bridge the gap if your current bank has a temporary problem.

Keep this money in a high-yield savings account to earn interest and have easy access to it.

Also Read: $4873 Social Security Payment: Eligibility and Deposit Dates Revealed

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