The California Department of Financial Protection and Innovation (DFPI) has announced a consent order with Chime Financial, Inc., a San Francisco-based financial technology company, addressing concerns over its customer service practices. The order, which includes a $2.5 million penalty, follows a DFPI investigation into the accuracy and responsiveness of Chime’s handling of customer service transactions.
Chime, while not a bank itself, partners with banks to offer retail banking products, including savings and checking accounts, to consumers. As an intermediary, Chime is responsible for ensuring its employees and third-party vendors who handle customer service are properly trained to address and resolve consumer complaints effectively.
According to DFPI Commissioner Clothilde V. Hewlett, the investigation revealed that Chime violated the California Consumer Financial Protection Law (CCFPL). The DFPI determined that Chime engaged in unfair acts related to its handling of customer complaints, a breach of consumer protection laws. “Consumers are entitled to have their complaints resolved accurately, fairly, and promptly,” Commissioner Hewlett stated, emphasizing the DFPI’s commitment to safeguarding these rights.
The DFPI investigation highlighted deficiencies in Chime’s procedures for managing customer service, specifically regarding the handling of complaints. While Chime cooperated fully with the investigation and has already initiated a remediation process, the consent order mandates further improvements to ensure better Chime Customer Service. This remediation has already shown progress in reducing the number of consumer complaints received by the Commissioner.
The consent order outlines several key requirements for Chime to rectify these issues and enhance its chime customer service operations. Chime is legally bound to:
- Cease and desist from any further violations of the CCFPL in its complaint handling processes.
- Pay a penalty of $2.5 million.
- Improve and expand its current customer service procedures and processes.
- Develop, implement, and maintain comprehensive testing policies and procedures to guarantee ongoing compliance with consumer financial protection laws.
- Provide annual reports to the DFPI for two years, detailing their progress in meeting these standards.
These mandated reforms are specifically designed to bolster chime customer service by requiring Chime to:
- Provide 24/7 customer service support.
- Maintain adequate staffing levels within its customer service operations.
- Ensure thorough and ongoing training for all customer service personnel.
- Implement robust policies and procedures to guarantee accurate, timely, and appropriate handling of all consumer complaints.
This action by the DFPI underscores the importance of effective chime customer service and the rights of consumers to fair and responsive complaint resolution. The DFPI encourages consumers who believe they have experienced unlawful, unfair, deceptive, or abusive practices to file a complaint directly with the department. Complaints can be submitted online at dfpi.ca.gov/submit-a-complaint or by calling toll-free at (866) 275-2677.
About the DFPI
The California Department of Financial Protection and Innovation (DFPI) is dedicated to protecting consumers and overseeing financial services within California. The department’s mission includes fostering responsible innovation while ensuring a fair and equitable financial marketplace for all Californians through regulation, education, and prevention of financial risks and fraud. More information about the DFPI can be found at dfpi.ca.gov.
