Cheating users on international money transfers is alleged in a complaint issued Tuesday against a widely used mobile app by the federal consumer financial protection agency.
In a release, the Consumer Financial Protection Bureau (CFPB) said the action against Chime Inc. is for deceiving consumers about the speed and cost of remittance transfers through its mobile app, known as Sendwave. The CFPB alleged that Sendwave placed “illegal fine print” into their contracts and tricked people who were sending money to their families overseas.
The CFPB also claimed, in its release, that Chime illegally forced consumers to waive their legal rights, failed to provide consumers with legally required disclosures and receipts, and failed to properly investigate consumer disputes and errors.
The bureau said Chime, through its actions, violated the Electronic Funds Transfer Act (EFTA) and the CFPB’s Remittance Transfer Rule. The agency wants Chime to refund nearly $1.5 million in fees to affected consumers and pay a $1.5 million penalty into the agency’s victims relief fund.
More specifically, the bureau said Chime forced consumers to waive their legal protections; made false promises about the speed and cost of remittance transfers; failed to provide required disclosures; failed to track, investigate, and resolve errors; and failed to provide receipts in a timely manner (as required by the Remittance Transfer Rule).