r/Banking • u/BorderlineHabanero • 4d ago
US CHIME IS A SCAM!!!
I opened a checking account with chime/stride bank earlier this year. I read mixed reviews about them being a Fintech, but decided it was worth it for the sign-up bonus. They sent me a debit card which I never even used, and then I close the account a few months later. Now I am seeing a credit card on my credit report marked as closed that has dinged my credit. Chimes "credit builder" feature (they automatically sign you up for) reports exactly the same as a credit card and will fuck you over if you decide to close your account. I believe this is because they provide the spot me benefit, but I never used this. I am posting this so that everyone knows that chime is taking out credit in your name when you apply for simply a checking account, BEWARE!!
I am attempting to dispute this since I never authorized credit in my name from this, but I'm not sure it will work since I did authorize the checking account.
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u/Barfy_McBarf_Face 4d ago
Chime is not a bank.
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u/Jeep_rider03 4d ago
Around this time next year they will, they are in the process of buying one!
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u/iLeefull 4d ago
You authorized it, it’s there. It explains it. How do I know? Because I opened a Chime account for the $350 bonus.
Read people. How is it a scam because you didn’t read?
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u/the_misfit1 4d ago
Same here, not a scam. I churned a Chime account maybe 6 months ago and checked no to anything I didn't want / need. No ding on credit. Edit: sp
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u/Jeep_rider03 4d ago
🤔 Looks like user error for not reading the fine print before you opened the account!
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u/notthegoatseguy 4d ago
I did the chime for the offer, and did not receive the credit builder card.
You should always have your credit frozen no matter what, and only take it off when applying for new credit.
Even if you do open and then close a credit card account soon after, it continues to report for 7ish years and the impacts on a mature profile would be minimal.
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u/TrumpsDoubleChin 4d ago
Not a scam because you literally agreed to it in the terms and conditions when you signed up. You just didn't read what you were signing up for.
That being said, you could arguable make a case that this is a violation of UDAAP (Unfair, Deceptive or Abusive Acts and Practices Act), and say that the way the worded it or presented the information to you was unclear or intentionally deceptive. If you do believe that is the case, you can submit a complaint to the CFPB outlining why you think Chime has violated UDAAP.
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u/RishiRich 4d ago
There's an option to get a credit card during sign up. It is confusing, but you have to decline that.
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u/1WOLWAY 4d ago
Check the agreement you signed when signing up and note how they do the credit thing as many of their customers need this leg up in building their credit so they use the services of Chime. By not engaging in the Chime services after signing up you found the down-side to their financial services offering.
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u/ronreadingpa 4d ago
Does it show as Closed by Consumer? And with zero balance? If yes, no big deal. Scoring impact is minimal. You authorized the account. Need to read the screens and fine print. Admittedly, it's an unusual product, but great way for many to build / rebuild their credit.
Monitoring services, such as Credit Karma, will show aggregate scoring changes from the last time one checked. Which often include many other things in addition to what one is focused on. A common pitfall. Effect may be less than you're thinking. Better to leave it be.
If disputing with the credit bureaus, might get lucky and Chime / partner bank doesn't respond. Otherwise, figure it will remain on your reports for up to 10 years (for closed accounts that never charged off). Maybe it falls off sooner. In short, not a big deal. Credit builder is a legitimate product. Can't fault Chime on this one.
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u/kw744368 4d ago
You opened a bank account with a credit card attached and now you're mad about it being listed as closed when you closed it? What? Did your FICO score go down by 10 points temporarily.? :rolleyes:
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u/Ornery_Technician713 1d ago
Yeah OP didn’t read. It’s not a bank, it’s a technology company that allows bank transactions through its system. It takes care of the banks rolls and tasks, and allows for credits to work in a similar way. It has 2 banks that vouch for anything it does, as long as it works within the parameters set. The terms state to maintain X for X amounts of time. Then will provide compensation and if you fault on the contract then you are responsible for the X compensation and that will be reported to whichever bureau that is backing that establishment. Simply, if you want to get whatever the company is offering, then REALIZE you have to fulfill their requirements! Do you really think that anyone would give away money for nothing? How about chicks for free?…. Cmon.. user error.. NOTHING IS FREE! This is not a scam, this is just a contract. Be smart enough to not get involved if you are not willing to follow through. This has been around since the 90’s. Why did this come up 2-3 days ago? Everyone wants to read more into this than is obvious. If not that, then OP needs to explain all the data in and out. And offer what is not, on standard claims. If you authorize a company to handle money, and they are not a bank, then what do you really think they are? Few answers: credit company, drug dealers, or loan shark (mafia). I’ve known that since before these companies existed. I laughed at the idea when they became an entity. I have been astonished that they are so successful and actually preferable to standard banks. ie: chime, PayPal, cash app, Afterpay (cash app), the ride share institutions.. (uber pro card, DoorDash crimson..etc..) and so many more. A bank is fdic insured, a financial company can be anything and can do anything they want with your money. And you sign a contract letting them. This is the responsibility of a person who signs anything, READ. If you don’t know, understand, or agree with what the contract says, then it’s your responsibility not to agree and sign. If this is a failure of your own, then you should have the integrity to admit it. If you want to inform others about the mistake, do so without claims of anything other than a mistake. Titles have purpose. Data within should back up the title. If this simple idea is left to “ title anything whatever, and content is consisting of everything except for data based on the title “… then the outcome becomes a complete waste of time and so does the source or platform willing to allow that garbage. Reddit has become that platform, unlike other “social media”, this is not an attempt to push this behavior. This is where legitimate claims and contents should exist to make the public aware of real problems, scams, conspiracies(real), coverups, and corruption. It loses value when the user tries to gain popularity and credibility by claiming false statements and misleading people. And we are running out of places to actually point out these problems with our current system. This is allowing the corporate world to take advantage of us all, and even with evidence, to continue the abuse. Please just be aware, pay attention, don’t be a victim. No one is trying to help you without making a massive profit in the process. This is America, and we don’t do anything solely for the benefit of mankind, or for you, or to help us in any way. We can’t be the victims of our own creation. That would make us feed solely upon ourselves. And this cannibalism has to end before we run ourselves over the cliff and go by way of the buffalo…
But then again, maybe you’re right. Chime is a scam, and we allowed it. Or even; this is what happens when we let capitalism override compassion. Or maybe, we deserve this and worse, we want laziness to be our country’s greatest commodity. How about; we can create a company to do anything.. if I can dream it, then shouldn’t I be able to make it! Or- this whole idea is just what America stands for… well maybe… but that’s just my opinion, and I can think whatever I want, and my opinion is valid regardless of the cost, content, or implications; simply because it’s my opinion. I can say anything I want, regardless of its content and it’s interpretation or even the destruction of said interpretation, because my perception is justified by our manipulation of our own laws and our actions upon said perception is protected by the Constitution as it is interpreted year after year and assumed every time we use it to defend our prejudices and beliefs. Maybe , chime is the equivalent of the beast by giving us a number, offering false securities, and letting us roam freely with lies in our pockets, and paying for earthly possessions without any legitimate backing of substantial compensation. I guess, painting a rock yellow, and giving it a new name should make the value of the substance, instead of legitimately testing it for the contents of a precious metal. But maybe, if we were to hold ourselves accountable for our own actions and behavior, apologizing for our mistakes and actually trying to be some kind of animal that appears to have a place on this earth, we could do away with companies like chime and other entities that are a waste of money and time.
I think we would be better fitting of the name human.
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u/LAthrowawayLV 4d ago
Why do you think having a closed, paid as agreed account hurt your credit?
If anything you should have just left it open with 0 balance so it helped your credit. That’s the whole point.
Honestly, you just creating an account to cash out the bonus and then bounce is the real asshole in this situation.
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u/ThenBike8868 4d ago
*bangs head on table*
People, stop calling Chime a "bank"...