Consumer complaint received 2025-11-08 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: Chime Financial Inc
State: FL

Complaint narrative:
This complaint alleges that the financial institution engaged in Unfair and Deceptive Acts or Practices ( UDAAP ) by failing to provide clear, timely, and material notice regarding a payment reversal, which directly resulted in an injury that I could not reasonably avoid. 

XX/XX/2025 I received a direct deposit for {$300.00} and from that deposit a {$90.00} repayment to my XXXX line of credit balance. The debt was considered paid and the account was current. 

XX/XX/2025 The financial institution unilaterally reversed the {$90.00} payment and reimbursed the funds to my Checking Account. No written or electronic notification was provided stating that the reversal reinstated my {$90.00} debt or that my XXXX account was now considered delinquent/in default. The reversal was presented merely as a reimbursement. 

XX/XX/2025 I deposited {$40.00} into my Checking Account. The funds were immediately and automatically seized ( offset ) to cover the debt that had been silently reinstated. The seizure occurred without prior notice of default, causing immediate financial distress. Immediately after the seizure, I called customer service and was informed for the first time that the XX/XX/XXXX reversal was due to the original funding source being deemed not a Qualifying Direct Deposit ( QDD ), which triggered the silent default and subsequent seizure. 

The company 's actions meet the criteria for both Deceptive and Unfair acts or practices : 1. Deceptive Act by Omission : The institution provided a {$90.00} reimbursement ( XX/XX/XXXX ) without including the material fact that this transaction simultaneously reinstated the original debt and placed the XXXX account into default. This critical omission was highly deceptive, failing to disclose a material change in my financial status default and setting a trap for an inevitable, unauthorized debt collection by set-off. A reasonable consumer was actively misled into vulnerability.

2. Unfair Act : The act caused a substantial injury ( the unauthorized seizure of the {$40.00} deposit ) that was not reasonably avoidable. The injury was a direct result of the institution 's reckless disregard for transparent communication, leading to a substantial injury that I could not reasonably avoid. This practice is unconscionable and disproportionately harmful. 

Demand for Production of Records ( Document Discovery ) To fully support and resolve this complaint, I hereby formally demand the immediate and comprehensive production of the following material records and internal documentation pursuant to my consumer protection rights : 1. Written Notice of Default/Reinstatement : All emails, letters, in-app notifications, and/or system logs demonstrating * any * attempt by the institution to provide me with written notice that the XX/XX/2025, reversal : a. Reinstated my \ {$90.00} debt balance. 
b. Placed my XXXX account into a status of default, delinquency, or past due. 
c. Explicitly informed me that the Right of Set-off would be enforced immediately on subsequent deposits. 
d. If no such written communication exists, the institution must attest to this fact in writing. * 2. Qualifying Direct Deposit ( QDD ) Policy and Determination : a. A full and unredacted copy of the official policy or terms and conditions defining a " Qualifying Direct Deposit '' relevant to the XX/XX/2025, payment date. 
b. Internal system logs or documentation detailing the exact date and reason the institution determined the original XX/XX/XXXX payment source failed to meet the QDD criteria, including the specific rule cited for rejection. 

3. Set-off Authorization : a. A copy of the specific document, electronic agreement, or clause within the Account XXXX that grants the institution the right of set-off that was relied upon to seize the {$40.00} deposit on XX/XX/2025. 
b. The complete, timestamped internal log or record detailing the initiation and completion of the Set-off/Seizure transaction on XX/XX/2025. 

Desired Resolution ( Total Redress Requested : {$250.00} ) 1. Immediate Refund ( Actual Loss ) : I demand the immediate refund of the {$40.00} that was seized/offset from my checking account on XX/XX/2025, which represents my direct monetary loss. 

2. Account Correction : I request that the institution correct my internal account history to remove any notation of default or delinquency related to the period between the XX/XX/XXXX reversal and the seizure on XX/XX/XXXX, as the default was not reasonably avoidable due to the lack of notice.

3. Consequential Redress/Damages ( Time, Effort, and Emotional Distress ) : Due to the institution 's deceptive omission and subsequent unauthorized seizure of funds, I suffered acute financial and emotional distress, including loss of access to critical funds, significant time spent investigating the unauthorized reversal, and the stress associated with an unjustly enforced delinquency. I demand a compensatory payment of * * \ {$210.00} * * for this consequential harm and injury. * * The total requested redress is \ {$250.00}. * * * * Attachments : * * * Screenshot/Statement showing the \ {$90.00} reversal on XX/XX/2025. 

* Screenshot/Statement showing the \ {$40.00} deposit and subsequent seizure/offset on XX/XX/2025. 

I certify that the facts contained in this complaint are true and accurate to the best of my knowledge.

Company response to consumer: Closed with explanation