Consumer complaint received 2024-12-06 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: Chime Financial Inc
State: GA

Complaint narrative:
Formal Complaint Regarding Chime 's Improper Retention of Chargeback Refunds and Violation of XXXX XXXX XXXX XXXX XXXX XXXX : XXXX  XXXX XXXX XXXX. 
XXXX XXXX XXXX XXXX XXXX, CA XXXX Phone : XXXX Complaint Description : I am filing this complaint to address Chimes unlawful withholding of funds that the merchant has already returned through a verified chargeback process. Despite clear, documented evidenceincluding verification from the XXXX Police Department ( with body camera footage ) and explicit confirmation from the merchants accounting XXXX refuses to release these funds to my account. Their failure to comply with federal consumer protection laws and industry-standard timelines for chargeback resolution is unjustifiable and injurious. 

Key Facts and Evidence : Unauthorized Transaction & Dispute Filing : After detecting an unauthorized credit card transaction on my Chime account, I immediately reported it and submitted all required documents, including evidence of fraudulent activity. Instead of conducting a thorough, timely investigation, Chime has hindered the resolution process at every step. 

XXXX XXXX XXXX XXXX XXXX XXXX : The merchant involved, XXXX XXXX, has unequivocally confirmed that it recognized the transaction as fraudulent and fully accepted the chargeback as valid. On XX/XX/year>, the merchants accounting department returned the entire disputed transaction amount directly to Chime. They have also provided complete documentation showing they fulfilled all chargeback requirements. 

Law Enforcement Verification & Recorded Evidence : The XXXX Police Department intervened and physically visited XXXX XXXX XXXX. Body camera footage from the officers confirms that XXXX XXXX accounting department informed them the funds were sent back to Chime and that no further action was pending from the merchants side. Additionally, I have shared recorded three-way callsincluding myself, the XXXX XXXX XXXX XXXX and Chime dispute representativeswith the police department. In these recordings, the merchants XXXX explicitly states that the chargeback was completed in full compliance with all requirements and that the funds are already with Chime. 

Refusal to Release Funds Beyond Standard Chargeback Timelines : Chargebacks typically resolve in approximately 10 days once the merchant returns the funds. Here, Chime has far exceeded this timeframe without providing any lawful justification. Their continued withholding of these returned funds is a severe departure from recognized best practices and industry norms. 

Applicable Federal Laws & Violations : Truth in Lending Act ( TILA ) & Fair Credit Billing Act ( XXXX ) : Under TILA and FCBA, issuers are required to properly investigate claims of unauthorized transactions and promptly credit the consumers account once a chargeback is validated and funds are returned. Chimes refusal to release these confirmed returned funds violates these provisions. 

Dodd-Frank Act - Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) : By withholding lawfully returned funds without a valid explanation, Chime engages in unfair and deceptive practices. This behavior erodes consumer trust and directly contravenes UDAAP standards designed to protect consumers from abusive financial practices.

Company response to consumer: Closed with monetary relief