The California Department of Financial Protection and Innovation (DFPI) announced that it has entered into a consent order with San Francisco-based Chime Financial, Inc..
The order, which includes “a $2.5 million penalty, resolves DFPI’s investigation regarding the accuracy and responsiveness of Chime’s handling of customer service transactions.”
Chime, incorporated in Delaware “with headquarters in San Francisco, California, acts as an intermediary between banks and consumers to provide access to retail banking products such as savings and checking accounts.”
Chime is responsible for “training its employees and third-party customer service vendors in handling consumer complaints.”
DFPI Commissioner Clothilde V. Hewlett said:
“The DFPI, through its investigation, determined that Chime violated consumer protections provided by the California Consumer Financial Protection Law by engaging in unfair acts concerning its handling of customer complaints. Consumers have a right to their complaints being resolved accurately, fairly, and in a timely manner, and the DFPI will continue to ensure these rights are protected.”
Chime cooperated with the investigation and “as set out in the Consent Order, has already begun its remediation process which has reduced consumer complaints to the Commissioner.”
Under the consent order, Chime agrees “to (1) desist and refrain from violating the CCFPL through its complaint handling processes; (2) pay a penalty of $ 2.5 million (3) enhance existing customer service procedures or processes; (4) establish, implement, enhance, and maintain testing policies, procedures, and standards reasonably designed to, at a minimum, ensure compliance with the law, and (5) report to the DFPI annually for two years on these standards.”
These reforms will:
- Ensure customer service support 24 hours a day, seven days a week.
- Ensure sufficient customer service support staffing.
- Ensure sufficient customer service support training.
- Require Chime to investigate and implement policies and procedures to maintain the accurate, prompt, and proper handling of consumer complaints.
Consumers can submit a complaint “directly with the DFPI if a company is suspected of using unlawful, unfair, deceptive, or abusive practices.”
The California Department of Financial Protection and Innovation (DFPI) says it “protects consumers, regulates financial services, and fosters responsible innovation.”
The DFPI protects consumers by “establishing and enforcing financial regulations that promote transparency and accountability.”
They claim to empower all Californians “to access a fair and equitable financial marketplace through education and preventing potential risks, fraud, and abuse.”