The Consumer Financial Protection Bureau (CFPB) fined a financial technology company for using a faulty algorithm that caused overdrafts and overdraft penalties for customers.
The bureau said Hello Digit, LLC’s product Hello Digit was meant to save people money. Instead, the company falsely guaranteed no overdrafts with its product, broke its promises to make amends for its mistakes and pocketed a portion of the interest that should have gone to consumers, according to the CFPB.
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