A Banking App Has Been Suddenly Closing Accounts, Sometimes Not Returning Customers’ Money

Chime, a “neobank” serving millions, is racking up complaints from users who can’t access their cash. The company says it’s cracking down on an “extraordinary surge” in fraudulent deposits. That’s little consolation to customers caught in the fray.

by Carson Kessler July 6, for ProPublica

The day after Jonathan Marrero’s federal stimulus payment landed in his bank account, he took his 5-year-old twins out for lunch at an Applebee’s near where he lives in New Jersey. When he went to pay, his only means of payment, a debit card issued by the hot financial technology startup Chime, was declined.

He didn’t understand why. Marrero had checked his account earlier that day and saw a balance of nearly $10,000. With the Applebee’s server standing next to him, he quickly pulled out his phone to check his Chime app, just as he had hundreds of times since he signed up in January.

Marrero couldn’t log in. He immediately checked his email and found a message from Chime that read, “We regret to inform you that we have made the decision to end our relationship with you at this time. Your spending account will be closed on March 18, 2021.”

Read more at: https://www.propublica.org/article/chime?utm_source=sailthru&utm_medium=email&utm_campaign=dailynewsletter&utm_content=feature