Fintech bank customers report missing money

ATLANTA — In the age of technology, technology-based banking apps have millions of fans.

“Eliminating overdraft fees, deciding to be able to get a paycheck two days early was one of the early draws for fintech companies,” explained Alex Horowitz, researcher for the Pew Charitable Trust’s Consumer Finance Project.

However, many customers, like Eva Potter, said that these promises are not kept.

“You should be able to get paid two days before,” Potter said. “That happened zero times. I never got my salary from January 15th.”

Potter used Chime, a financial technology or “fintech” company. Chime’s website explicitly states that they are not a bank and that the nearly 15 million accounts they manage are FDIC insured up to $250,000 each.

But experts said fintech customers don’t get the same federal protections they would with a regular bank.

“Fintech providers should follow the same rules as banks, but they are not monitored in the same way,” Horowitz said.

He said his agency is monitoring a growing number of complaints from fintech customers who say their money has been delayed, or even disappeared, with little or no explanation.

“There is certainly more notice because of the complaints from consumers who have had their accounts closed suddenly or have not been able to access their money,” he explained.

Another couple who signed up for Chime said that’s what happened to them.

“It’s been really, really scary not knowing, like, are we going to have rent this month or afford groceries this week? It’s terrifying,” Carly Scorpio said.

Scorpio and her boyfriend, Jimmy Carlson, said they decided to withdraw $6,500 from their Chime account, but said the check was flagged as fraudulent.

“Nobody could tell me how this happened, why it was flagged as fraudulent,” Carlson said. “All they could tell me every time was that the money is gone and there’s nothing we can do.”

The couple said they’ve had trouble getting in touch with anyone at Chime to resolve the issue.

“It’s just like absolutely brutal that everything is designed, it feels like they’re not helping you on purpose because they’re not regulated,” Carlson said. “It’s like we don’t need to help you.”

More than 7,700 Better Business Bureau complaints have been filed against Chime in the past three years.

More than half of the complaints in Georgia were from people who didn’t have access to their money or had their account closed unexpectedly. The zip codes that field the most complaints in Georgia include 30233 (Griffin), 30038 (Lithonia Stonecrest) and 30349 (Atlanta South Fulton).

Horowitz explained that fintech customers should report any problems to the federal government.

“Because the banking regulators only cover banks, the only federal regulator here is the Consumer Financial Protection Bureau,” he said. “They accept complaints from consumers when something goes wrong, such as not being able to access their money or experiencing fraud.”

For many it had been a difficult lesson – to read the fine print.

“None of us know anything about fintech companies until all this happened,” Scorpio said.

“They have to be held to the same exact accountability that a big bank does. And that’s and that’s the bottom line.”

A spokesperson for Chime said it has launched investigations into Potter and Carlson’s complaints. In a statement, they told 11Alive the following:

“While we cannot share further details to protect the privacy of our members, our support team stands ready to assist these individuals with any outstanding needs. Our team is available 24/7, 365 days a year via direct phone, email, in-app, chat and support for social channels.

Chime is one of the most downloaded and loved banking apps in the US. As a financial technology company, we create financial products in full cooperation with our partner banks. Chime members’ deposits sit in fully FDIC-insured accounts and are subject to the same oversight and regulations and offer the same consumer protections that traditional banks offer.”

Affected individuals can file a complaint with the Consumer Financial Protection Bureau here.