BOSTON – Tiaranie Robinson was out shopping when she received an ominous notification on her phone that her savings were gone. “Honestly, it was the worst feeling ever,” she said. “I felt like someone was robbing me.”
The message was from the online banking app Chime, telling Tearany that her account had been closed and she would not be eligible for a refund. “I’m standing outside a store in the cold asking them why they closed my account. And they say, actually, you can close your account at any time. This is what I’m saying right now. “It was $9,200 of my savings, which I’ve been saving since last year,” she said.
Teelaney, a student at Drexel University, used the account to deposit the little money she earned to pay for financial aid and care for elderly relatives. Because Chime is only an online company, Tearany struggled to get the answers she needed.
She called and emailed Chime, but got the same response. “We have observed activity on your account that does not comply with the terms of your Chime savings account agreement.”
“I told myself not to get too serious, just like I literally lost all my money,” Tiaraney said.
The I-Team discovered that Tierany was not alone. Over the past three years, the Consumer Financial Protection Bureau has received 5,034 complaints about Chime’s checking and savings accounts. Of these complaints, 954 were related to account closures and 360 were similar to Tierney.
“We call this a nonbank banking app,” said Carla Sanchez Adams of the Consumer Law Center. “They’re not banks.”
Apps like Chime are an alternative to traditional banks. The company says it has more than 700,000 five-star reviews, and account benefits include getting paid up to two days early, no overdraft fees, and no monthly fees. .
“With these nonbanks, there’s a lot of uncertainty and unknowns for the banking consumer,” Sanchez-Adams said. “Chime doesn’t have branches and there’s no place to talk to someone in person, so you might have to spend a lot of time on the phone or use a chatbot, and you might not get the best answers to your questions.”
Frustrated that she couldn’t get her money, Teelani contacted the I-Team. “Two hours after you contacted them, I received an email from a leader at Chime saying she was going to expedite a thorough review of my account,” Teerany said.
Chaim told the I-Team in a statement: “We take matters such as this very seriously, and our team worked quickly to thoroughly review the matter. We have issued a check to her and are in direct contact with her.”
Tierani can buy Christmas presents, go back to school, and not have to worry about saving money. She said, “I was so grateful for your help. You have no idea. Thank you from the bottom of my heart, because it really made a huge difference to me.”
The Consumer Financial Protection Bureau advises doing your research before opening an account with a nonbank. Chime says he is FDIC insured, but many companies do not have insurance, making it very difficult to get your money back if your account is closed or the company goes bankrupt. It will be.