CFPB presses Bilt to reimburse customers after bank partner transition issues

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Bilt customer reimbursement issues

Highlights

Bilt agreed to reimburse overdraft, late, and insufficient funds fees for over 500 customers affected by its bank partner transition by June 4, following CFPB discussions.
Bilt reported to the CFPB that it has completed resolving transition-related technical issues, supported by submitted documentation indicating restored operational systems.
The CFPB framed the Bilt case as a model of enforcement prioritizing consumer harm, due process, and collaboration, and will continue monitoring until full redress is achieved.

Regulatory response and reimbursement plan

As reported by the Consumer Financial Protection Bureau, agency officials met with Bilt to examine the issues caused by the transition and to push for full redress for customers affected by the disruption.

After those discussions, Bilt notified the CFPB that it had proactively contacted a limited number of potentially affected customers and offered to reimburse overdraft fees, late fees and insufficient funds fees linked to the transition.

The agency says Bilt is still reviewing reimbursement requests and, by June 4, will reimburse fees for more than 500 newly identified customers from its outreach following the talks with the CFPB.

Operational fixes and wider enforcement approach

The CFPB also says it has discussed with Bilt the steps taken to ensure all transition-related technical issues are resolved. Documentation submitted by Bilt appears to show the process is complete and that its systems are back on track.

The bureau presents the case as an example of its current enforcement principles, which it describes as focused on actual consumer harm, due process, collaboration and efficiency. The CFPB says it will continue monitoring Bilt's efforts until it is satisfied that full redress is provided and will issue another update later.

Our earlier report on the proposed $1.8 billion compensation mechanism tied to President Donald Trump’s lawsuit against the IRS explained that the Department of Justice is refusing to move forward with administering the fund. Acting Attorney General Todd Blanche said DOJ would not operate it regardless of the outcome of pending legal challenges, adding uncertainty to how the settlement could be implemented and highlighting heightened scrutiny of sensitive compensation arrangements in the federal government.

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