CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty
Hello Digit's automated savings product allegedly transferred funds from users' checking accounts via a proprietary algorithm that reportedly caused overdrafts and bank fees despite a "no overdraft" guarantee. The Consumer Financial Protection Bureau (CFPB) reportedly also found the company denied many reimbursement requests and kept interest earned on customer funds. Hello Digit was ordered to provide redress and pay a $2.7M civil penalty.
- Date it happened
- 2022-08-10
- Organisation involved
- Hello Digit, Oportun Financial Corporation
- Product, system or model
- Hello Digit automated savings algorithm, Hello Digit auto-save transfer scheduling/decision engine, Hello Digit proprietary checking-account analysis model
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