2026-09-20T23:22:28.549Z
- publishedAt:
Not provided→ 2022-08-10T00:00:00.000Z
SOURCE-LINKED INTELLIGENCE
CFPB Reportedly Finds Hello Digit's Automated Savings Algorithm Caused Overdrafts and Orders Redress with $2.7M Penalty
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.
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- recordType
- incident-report
- evidenceStatus
- reported
- region
- Global
Reported occurrence date: 2022-08-10T00:00:00.000Z
Evidence & attribution
- AI Incident Database
- AI Incident Database · 2022-08-10T00:00:00.000Z
AI Incident Database, Responsible AI Collaborative; McGregor (2021), Preventing Repeated Real World AI Failures by Cataloging Incidents. Incident-specific contributor credits are available at each citation link. Metadata adapted; article text excluded.
License: CC BY-SA 4.0
First collected: 2026-09-19T22:50:59.123Z. This is not the publication date.
Observed changes
AIIC observation times, not verified publisher revision times. Up to eight recent revisions.