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The Consumer Financial Protection Bureau (CFPB) has filed a complaint against Synapse Financial Technologies for allegedly losing customer funds when the company filed for bankruptcy protection.
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The CFPB alleges that when Synapse filed for bankruptcy protection in April 2024, customer funds that were moved between partnering banks were misplaced and lost, leaving the money inaccessible to customers for weeks to months.
The partnering banks claimed that the funds they held for Synapse customers was less than the records Synapse provided, there was a total shortfall of $60-90 million.
Many consumers have yet to receive their full account balance.
If the lawsuit proceeds to court, the CFPB will ban Synapse from selling customer data and charge a civil money penalty to reimburse the impacted consumers.
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