fineConcluded$2,700,000
Consumer Financial Protection Bureau — Hello Digit, LLC
August 10, 2022 · United States · Financial Technology
The CFPB took action against Hello Digit for using a faulty automated savings algorithm that caused overdrafts and overdraft penalties for customers, despite falsely guaranteeing no overdrafts.
Key takeaway — how to prevent this
Automated decision-making and risk-scoring must be tested for discrimination and be explainable to those affected; opaque algorithms applied to people draw regulatory action.
Inclusion does not imply wrongdoing or liability. Status reflects the latest information we have — always check the official source for current status.