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Chime Inc. Under Scrutiny by CFPB: Exposing Deceptive Tactics of the Sendwave App


In a significant development, the Consumer Financial Protection Bureau (CFPB) has intervened in response to deceptive practices by Chime Inc., the operator behind the Sendwave mobile app. Allegations concerning misinformation on remittance transfer speed and costs have prompted the CFPB to underscore the importance of consumer awareness in the digital realm.

I. Understanding the Case – Sendwave’s Deceptive Practices:

Chime Inc., operating the Sendwave app, serves as a non-bank fintech facilitating international money transfers, notably to countries in Africa and Asia. The CFPB investigation has unearthed various deceptive practices, leading to enforcement actions against Chime Inc. These practices include:

  1. Forced Waiver of Legal Protections:

Users were compelled to sign a “remittance services agreement,” absolving Chime Inc. of responsibility for losses incurred while limiting liability to a mere $1,000. This ran counter to consumer rights protected by the Electronic Fund Transfer Act.

  1. False Promises on Speed and Cost:

Sendwave’s marketing on social media platforms falsely promised instant or ultra-fast remittance transfers, often contradicting reality. Misrepresentation of costs, particularly stating “no fees” for sending money to Nigeria when fees were indeed charged, further exacerbated the deceptive practices.

  1. Failure to Provide Required Disclosures:

Chime Inc. failed to accurately disclose fund availability to recipients and misrepresented exchange rates, violating legal requirements.

  1. Inadequate Error Resolution Procedures:

Lacking proper policies for investigating errors, Chime Inc. failed to conduct appropriate investigations when customers reported remittance transfer errors.

  1. Delayed Receipts:

Sendwave violated the Remittance Transfer Rule by delaying receipts until funds were electronically delivered, sometimes exceeding the one-business-day requirement.

II. Protecting Yourself from Financial Scams:

With the proliferation of deceptive practices in online money transfers, adopting stringent security measures and staying informed is crucial. Consider the following precautions:

  1. Thorough Research:

Before using a money transfer app or any online financial service, conduct comprehensive research. Read reviews, verify regulations, and scrutinize policies and pricing.

  1. Understand Terms and Conditions:

Carefully read and comprehend terms and conditions, particularly clauses that restrict rights or introduce unexpected fees. Be cautious of services promising unrealistically fast transfers.

  1. Account Monitoring:

Regularly check account statements to ensure charges align with expectations, facilitating the prompt detection of discrepancies.

III. What Can You Do If You Were Scammed Online?

If you suspect falling victim to an online financial scam, take the following steps:

  1. Contact the Service Provider:

Initiate contact with the company responsible for the service, explaining the situation and seeking an explanation or resolution.

  1. File a Complaint:

If concerns persist, consider filing a formal complaint with relevant regulatory authorities, such as the CFPB.

  1. Secure Your Accounts:

Change passwords, enable two-factor authentication, and monitor accounts diligently to prevent further unauthorized activity.

  1. Seek Legal Advice:

For significant financial losses, consult with legal experts specializing in online scams and consumer protection.


Consumer vigilance is paramount in navigating the complexities of online money transfers. Chime Inc.’s deceptive practices underline the need for thorough research, understanding terms, and vigilant account monitoring. In the case of scams, taking prompt actions, including seeking legal advice, becomes crucial in mitigating financial losses.

Remember, our consultation experts are available to assist you, offering guidance whether you’ve encountered a scam broker, experienced losses through fraudulent crypto transfers, or engaged with an illicit app. Book a free consultation today for comprehensive support.

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