The Consumer Financial Protection Bureau (CFPB) has filed a complaint against Synapse Financial Technologies, alleging the loss of customer funds following the company’s bankruptcy filing.
The CFPB claims that when Synapse filed for bankruptcy protection in April 2024, customer funds transferred between partnering banks were misplaced, leaving these funds inaccessible for weeks or even months.
Partnering banks reported discrepancies, stating that the funds they held for Synapse customers were significantly lower than what Synapse’s records indicated, resulting in a total shortfall estimated between $60 million and $90 million.
Many consumers still have not received their complete account balances. If the lawsuit goes to court, the CFPB intends to prohibit Synapse from selling customer data and may impose a civil money penalty to compensate affected consumers.