CFPB: Bilt To Reimburse Hundreds Following Card-Relaunch Payment Problems
By CU Today Staff —
WASHINGTON—The Consumer Financial Protection Bureau said Bilt will reimburse more than 500 customers who incurred penalty fees and other costs tied to problems during the fintech’s transition to a new bank partner and relaunch of its rent-payment rewards card program, with the agency highlighting the outcome as an example of resolving consumer harm through direct engagement rather than formal enforcement action, Law360 reported.
According to the CFPB, Bureau officials met with Bilt after reports surfaced that some customers experienced delayed or failed rent and mortgage payments, service disruptions and related fees following the rollout of “Bilt 2.0” earlier this year. The agency said Bilt is reviewing reimbursement requests and committed to compensating affected consumers, with reimbursements for hundreds of customers expected to be completed this week, Law360 said.
The announcement comes amid growing scrutiny of Bilt’s transition away from its prior card partnership. Sen. Elizabeth Warren (D-MA) recently demanded information from the company regarding payment disruptions, citing reports that rent and mortgage payments were delayed, rejected or never reached landlords and lenders. Consumer advocates also urged regulators to investigate complaints involving late fees, missed payments and customer-service problems during the conversion.
The CFPB said its work with Bilt demonstrates how supervisory engagement and remediation can address consumer harm without resorting to punitive enforcement, a notable signal as the bureau under the Trump administration continues to emphasize collaborative resolution of consumer issues.
Originally reported by CU Today.