Hello Digit auto-save transfer scheduling/decision engine

Incidents implicated systems

Incident 12221 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

2022-08-10

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.

Related Entities

Hello Digit

Incidents involved as both Developer and Deployer

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Oportun Financial Corporation

Incidents involved as both Developer and Deployer

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Hello Digit customers

Incidents Harmed By

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Bank account holders enrolled in auto-saves

Incidents Harmed By

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Consumers charged overdraft fees due to auto-saves

Incidents Harmed By

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Consumers denied overdraft reimbursement

Incidents Harmed By

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Consumers whose accrued interest was retained

Incidents Harmed By

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Hello Digit automated savings algorithm

Incidents implicated systems

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty

Hello Digit proprietary checking-account analysis model

Incidents implicated systems

Incident 1222
1 Report
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty