Utah woman reportedly loses nearly $10,000 after using ‘Fintech’ money service

SALT LAKE CITY — After finding nearly $10,000 missing from her savings account. A Utah woman found the culprit: a new financial technology firm that claimed more convenient early paychecks than traditional banks.

Thousands of dollars were gone in just a few minutes, and a savings account was depleted. It’s a nightmare for everyone, but a reality for a mother who was hoping to take her children on holiday.

The advertisements promise fee-free overdrafts, early salaries and easy credit building through Chime, one of many companies referred to as fin-tech or financial technology.

A quick glance at their website will tell you that they are not a bank.

For Maxine Pizarro, a local mother of four, the convenience prompted her to open an account.

Until it wasn’t so practical.

“I got a notification that a charge, I think it was like $1,500, was charged to Moon Pay, so that’s what first caught my eye. What is it? And then I looked and saw other warnings, says Pizarro. “I went to log into my Chime account and I couldn’t log in so I was like okay maybe it’s a password, I swear I forget passwords all the time. I tried to reset my password and it didn’t recognize my email.”

She called Chime, they helped her reset her password and email address.

“When I came in, I could clearly see all the false accusations. They moved everything from my savings to my checking account and then proceeded with the charges,” says Pizarro. “The fees came to $9,900. The reason they didn’t take more is because I found out later that my daily limit was $10,000 and that’s why. I’m sure if it was higher they would have wiped me pure.”

“It was our Disney travel money,” Pizarro said.

Frustrated, Pizarro called Chime’s customer service twice to file charge disputes.

Both times these disputes were rejected.

They held her responsible for the nearly $10,000 taken from her account.

“It was the same, they said, ‘Don’t worry, we understand. This is a lot of money. We’ve escalated your dispute.’ They could never tell me what it meant, escalated. They just kept saying it over and over,” says Pizarro.

While Chime and other fintech services like it are not banks, their banking services and debit cards are provided by established banks: The Bancorp Bank and Stride Bank.

We reached out to Bancorp and Stride to see how Pizarro could get her money back.

We didn’t hear back from either of them, but a few days after we met with Pizarro who then updated her dispute with a police report, they were almost $10,000 back in her account.

“Our high-tech products are still largely unregulated at the state and federal level, so there’s not a ton of oversight,” says Rachel Gittleman of the Consumer Federation of America.

Gittleman says that even if it feels like you’re using a bank when you sign in with a high-tech service, be careful.

The Consumer Financial Protection Bureau has tracked more than 3,000 complaints over the past three years from customers who have experienced many of the same problems with Chime — accounts being closed and leaving customers without access to their money or accounts hacked by unrecognizable sellers with no warranty for returned money.

Gittleman notes that some conveniences that come with companies like Chime are amenities you get with a regular bank or credit union, so weigh your banking options carefully.

“A lot of banks have mobile apps and you can access them from anywhere, so I think what used to be different with fin technology is becoming more common across our financial services.”

Fox 13 also reached out to Chime for comment on Pizarro’s situation.

They sent us a statement, it reads in part:

“Unfortunately, fraud like this is widespread in the industry. To ensure the safety of our members and our platform, we use strict fraud detection protocols and take action when necessary to prevent fraudulent activity. We encourage customers to report suspicious activity immediately and practice safe online banking habits, including closely monitoring accounts and never giving out personal information. Members can contact live support 24/7, 365 with questions.”

As for Pizarro, she’s happy to get the money back, but she says it’s a lesson.

“Don’t use a bank that they don’t have an actual place you can go and use it. I’ve learned that,” Pizarro said. “I feel like everyone I’ve talked to at Chime is overseas, there’s no place to go. After being hacked too, you don’t know who to trust.”

The Consumer Federation of America says if this happens to you, there are some next steps you can take.

After you have spoken to your company, contact the local consumer authority.

In Utah, this is a department under the Department of Commerce, it is located in Salt Lake City.

Also file a complaint with the Consumer Financial Protection Bureau.

It’s easy to do on their website and this helps them create best practices for consumers.

And contact the police or a lawyer.

Pizarro did just that, and having a police report may have helped her battle.