Consumer complaint received 2020-12-07
Company: Chime Financial Inc
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Can't close your account

Complaint:
I have been contacting Chime about my Chime Credit Builder Account for nearly two weeks now since XX/XX/2020 without any progress. My Chime Credit Builder Secured Card was disabled without my knowledge which left me stranded at XXXX XXXX XXXX XXXX after it was also repeatedly declined ; even though, the balance was available on the card. I then called to see what the issue was with the card and was just left on hold by to representatives for an hour and 15 minutes after being told it was disabled because of a due balance. Neither of them ever came back on the line to mention there will be a longer wait, please stay on the line, it'll be a moment longer, or anything. This a secured card and has also been advertised as a secured card with no annual fees, no interest, no credit check, and no minimum balance required.

The aforementioned advertised aspects of this Chime Credit Builder secured card is why myself and no doubt, many others have decided to get the card to improve one 's credit. A secured card is a card that is funded by your own money, hence the word secured and not a credit line issued to you by the bank as with unsecured cards. There's is no risk to the company as you are using your own money to fund the secured credit card. From there, one simply spends an amount on the card and the bank reports a utilization of that complete balance to the credit reporting agencies after 25 days. The card holder will then just re-fund the balance they used back to the card to keep their utilization low or at 0 % if they never use what they've funded onto the card, or re-fund exactly what they used in a short period of time. 

I have always replaced the balance I've used back on to the card within a week or less as I was using this Chime Credit Builder secured card to rent a car. XXXX XXXX  would charge the card {$300.00} or so, hold that balance until after my rental week or few days is complete, then I would put the balance charged back onto the card, then extend my car rental the next week or few days, then XXXX  XXXX would charge the card again, and so on ; thus, there was never a time where what was used could be reflected as a bill due on the card as I would always re-fund what I've used back onto the card in a week or less. After ending the rental, and not extending it, XXXX would then keep the charged amounts per rental extension charged each week, and they would then reflect in total on one specific day, even though they were charged individually throughout each week of the month. 

After the card was disabled, then speaking with two separate Chime customer support reps who dismissively placed me on hold for an hour and 15 minutes, and never came back on the line, I then emailed Chime about the issue I was having with the card. XXXX, a chime customer support rep, first responded to my email stating the same response of there being a bill of {$73.00} due on the card to reactivate it. I then explained to him that is incorrect as this a secured card, I have always replaced what I have used within a week or less, and that the only way there could be a bill is if there was interest, or if I ever overdraft a balance over my self funded balance and did not cure it. Also mentioned that this Chime Credit Builder Card is being advertised as a secured card, with no annual fees/or interest, and that I am no longer interested in having the card any longer and want the account closed immediately.

To which the Chime rep responded : " Hi XXXX, Once a Chime Credit Builder has been closed, it can not be reopened. Money remaining in the Credit Builder Account will be mailed to you in a check. Use the Chime App 's Move Money feature to transfer available money to your Spending Account instantly before closing your account. To allow me to close your Credit Builder Card Account, please confirm you're aware of this limitation and you have transferred your available to spend to your Spending Account. 

I look forward to hearing from you! '' Kind Regards, XXXX | Chime Member Services -- -- -- -- -- -- -- -- -- -- - To which I then responded with : " Hi XXXX, Remaining balance has been transferred from the Chime credit builder card account. Please proceed with it's closure. 

Thank you. '' XXXX XXXX -- -- -- -- -- -- -- -- -- -- After several days, I noticed that the account was still open and that they had just reported it to the credit reporting agencies. I then emailed XXXX again and stated that I completed the steps he mentioned, and that I want the account to be closed. 

To which the Chime rep then responded with : " Hi XXXX, Please accept my apologies for the long waiting. We are reducing the number of team members in our offices at any one time to guard against COVID-19 concerns. It means we might be getting back to you later than the usual timeframe. Thank you so much for your patience during this unprecedented time. In order for us to close your Chime Credit Builder Account, please pay the missing Credit Builder bill so we can gladly process your request as proper! 

I look forward to hearing from you! '' Kind Regards, XXXX | Chime Member Services -- -- -- -- -- -- -- -- -- - The balance that is erroneously reflecting as due, is now {$2000.00}. I then responded with screenshots of the account showing that I always re-funded the secured card with the balance that I used within a week or less and that there also should not be any balance due because it is a secured card, they charge no interest, they charge no annual fees, and the card is not currently overdraft which would result in a negative balance. 

My exact response was ( which also included screenshots of me re-funding what I've used back onto the card, however images can't be rendered within this message area resulting as the words Inline Image ) : " Hi, there should not be a bill because it was my own money use from my own account, and each time I used the card the amount was replaced. I do not owe {$2000.00}. A secured card works by using the money one puts on the card then putting the balance on the which I have done each time I've used the card. The only way there would be a bill is if I overdraft money or if there were late fees or annual fees. Which this company has advertised that there are not any. 

Inline image Again, a secured card is a person 's own money used to secure a line of credit on a credit card. If someone has only used the money they have place on the card there should be no bill. If there is no overdraft, there should be no bill. If there are no late fees, there should be no bill. If there is no annual fee, there should be no bill. I have continuously placed the money back onto the card and used only the money available on the card. 

Inline image Inline image Inline image Inline image Inline image Inline image Inline image Inline image There was an over draft once for {$66.00} in XXXX, however I cured it by placing money on the card. Finally, I do not owe a balance on this secured card as I have only used the money I have place on the secured card, have always placed the money that I have used back onto the card, and since I have no overdraft balance, late fee balance, nor annual fee balance there should be no bill for this Chime Credit Builder secured card ; thus, my request several days ago, to have closed should have simply been honored. Once more, the remaining balance in my Chime credit builder account has been transferred out, and yes I understand that once it is closed, it can not be reopened. At this time, I want this Chime Credit Builder account to be closed immediately, or I will have to pursue legal action as paying money I do not owe and reporting it on my credit report affects my quality of life. '' XXXX XXXX -- -- -- -- -- -- -- -- -- -- - To which the Chime rep responded : " Hi XXXX, Thank you for providing that information! I am truly sorry for the confusion in regards to how does the Credit Builder Account work. I will gladly share with you how does it work in order to verify the payment missing. Please note that the Credit Builder program consists of two elements : the Secured Account and the Credit Builder Card. When you add funds from your Spending account to your Secured account, this money is held as the total limit available in the Credit Builder. However, when you make transactions with your Credit Builder Card, the money you spend is not the one in the Secured account, but money credited by Chime. When you reach the end of the billing cycle, and if the automatic payments are enabled, the funds are taken from the Secured account to cover the total amount spent on the period. 

After taking a careful review of your Credit Builder Account, I was able to see that you have your " Safer Credit Builder '' feature disabled. Once activated, this feature will automatically pay your Credit Builder bill at the proper time and amount when you reach your payment date ( For the automatic payments on your account, it will be on the 3rd )! The funds that the feature used to pay the balance are the funds already transferred to your Secured Account. Due to the Safer Credit Builder feature is not active, you will need to process a Manual Payment, to make a manual payment when the safer credit-building option is disabled, you will have the extra option " Make a payment '', and the app will ask " How much do you want to pay from your secured account ''. Then, you can select if you want to pay the full amount or a partial amount. Since the due date for billing has already passed, I'll highly recommend covering the full balance. After this, you'll need to type the debt amount and click on the option " Review manual payment ''. Once you confirm the payment on " Submit Payment '' you should be able to see the past due balance already covered. Please let me know if I can assist you with anything else. '' Kind Regards, XXXX XXXX Chime Member Services -- -- -- -- -- -- -- -- -- As indicated by his response, Chime has falsely advertised this Chime Credit Builder Card as secured card. He mentions that you not only pay the balance used of your self funded balance placed onto the card, but you also pay Chime that same balance as well to Chime because it is " credited '' by Chime, which is complete incorrect as the money you put onto the card from one 's Chime Spending account ( or checking account ) is your very own money. This is not a line of credit or an unsecured credit card issue by Chime. 

My exact response was : This is not mentioned in the Chime Credit Builder advertisements as I would not have gotten this account as it means paying double and not inline with what a secured card is. Chime 's advertisement only states that it is a secured card funded by one 's Chime Spending account with no late fees or annual fees. I want my Chime Credit Builder card account to be closed immediately. If this is not done as I've already requested several times now, I will have to proceed with legal action for false advertisement, and other damages if this account reports on my credit after I have continuously stated that I want my Chime Credit Builder card account to be closed. '' XXXX XXXX -- -- -- -- -- -- -- -- -- -- Before this issue with their Chime Credit Builder Card, Chime has been decent to do business with in regards to the checking and savings account. However, their behavior with this Chime credit builder card account is egregiously misleading and deceptive. They have surreptitiously gotten my business with this Chime Credit Builder card as myself and others have been made to believe it to actually be a secured card with no interests or fees as they have advertised. If they were to truthfully advertise this card as mentioned by the Chime rep, as it being a card that one will self fund with their own money from their checking account ( Chime Spending Account ) as a secured card, have to replace what they have used, and also pay Chime that exact balance because some how it is being " credited '' by Chime even though it is actually your money, I find it irrefutable that anyone would use this Chime Credit Builder Card product while being rightfully informed of what it consists of. If one does not transfer money from one of their other accounts into the Chime Credit Builder card account, the card would decline if used as there would be no funds available on the Chime Credit Builder card which further proves the point of the balance being one 's own money that's being used ; and, that the balance on the card is not money credited by Chime as mentioned by the Chime rep. 

Overall, due to Chime 's fraudulence and false advertisement of this Chime Credit Builder Card, I want my Chime Credit Builder Card account to be closed immediately, and for it to be removed from my credit report ; or, I plan to seek legal action for fraud, false advertisement, and damage to my quality of life.

Company response to consumer: Closed with explanation