8 OctOber 19 - 25, 2023 dallasobserver.com DALLAS OBSERVER Classified | MusiC | dish | Culture | unfair Park | Contents claims he’s now stuck in North Texas be- cause Chime refuses to make him whole for the more than $6,500 that was stolen. Philip told the Observer last week that he’s virtually penniless and nearly homeless. He said that whoever took his phone used it to ask for money from his loved ones, some of whom obliged thinking that the funds would go to Philip. “I can’t even turn to family and friends,” he said. “It’s not like they’re mad at me, but they’re not going to go help me out because they already got burned.” Some may assume that Chime is a bank, but technically it is not. Rather, the company partners with banks to provide its users with early paydays and online banking services, and to assist in boosting credit. “I’ve been victimized twice, right?” he said. “I’ve been pickpocketed and now I’m being victimized by Chime, who I thought was a bank, and they don’t do what’s right. And, you know, I’m desperate.” Following the theft, Philip filed a report with the Dallas Police Department, which the Observer has reviewed. But he explained that the report was returned and later re- jected after he was asked to sign an affidavit at the station downtown — something he says he was unable to do because he lacked funds to take an Uber from where he was staying in Plano. The Observer also reviewed screenshots of Philip’s Chime records, his communica- tions with the company and other relevant documentation. Chime investigated but chose to close Philip’s case. “We are aware of these claims and shared our review with the member when we were contacted last month,” a company represen- tative told the Observer via email. “We’ve found that the claims are without merit and properly denied.” Stories of similar incidents have cropped up nationwide. In May, FOX 26 in Houston reported that a nurse’s Chime account had been drained. Although she had tried for months to get re- imbursed for the $1,000 she’d lost, the com- pany promptly credited her account after the station got involved. That same month, a FOX affiliate in Salt Lake City aired a piece about a woman who’d lost nearly $10,000 from her Chime account because of fraudulent charges. She also even- tually saw that money returned, but only after the outlet looked into the story. Philip pointed the Observer to a CBS arti- cle published in August detailing a Chicago teacher’s unpleasant experience with the company. Her vacation to Italy had report- edly been “ruined” after $1,200 was swiped from her Chime account. Yet again, the dis- putes she filed were initially denied, but her money was eventually returned after she reached out to the media. “This is my life savings, and it’s wrong what happened here,” Philip said. “It’s clearly a pattern with Chime.” Chime has faced thousands of customer complaints filed through the Better Busi- ness Bureau. More than 7,970 such com- plaints have been closed over the past three years. By contrast, Wells Fargo — which doesn’t exactly enjoy widespread customer satisfaction — has generated around 5,590 complaints within the same timeframe. Fintech apps have become more popular in recent years, said Christine Hines, legisla- tive director at the National Association of Consumer Advocates. Such companies don’t face the same responsibilities and regula- tions as banks, even though they operate in a similar way. Hines said changes are needed at the state and federal levels to hold fintech more accountable. “Right now, it doesn’t appear that there’s really much in the way of protecting con- sumers — their users — from fraud and er- rors,” Hines said. She added that while situations like Philip’s are unfortunate, they definitely are “not unique. “It is happening,” she continued, “and we’re hoping that more will be done to pro- tect consumers who are using these apps, which is millions of people.” During the pandemic, many folks sought to use Chime to help boost their credit, ac- cording to the online consumer rights ser- vice FairShake. However, they also “didn’t get the same fraud liability protection with- out the same protections as a bank.” FairShake advises those who feel that they’ve been burned by Chime to explore le- gal options. “You can file a complaint against Chime,” FairShake states on its website. “You can try to sue Chime in small court, even if you can’t join lawsuits against them. Alternatively, you can use consumer arbitration.” Victims of fraudulent account activity do have rights, said Carla Sanchez-Adams, se- nior attorney at the National Consumer Law Center. In such cases, “time is of the es- sence.” If you find yourself in a scenario where your wallet has been stolen, Sanchez-Adams advises you to immediately report it to your bank and dispute any unauthorized charges. Be sure to do it as soon as you can. Sanchez-Adams advises people to edu- cate themselves on the risks of using fintech apps like Chime. “Consumers need to understand that sometimes they’re trading convenience for protections, and just be aware of that trade-off when they make a decision,” she said. “Be- cause I don’t think consumers always know pros and cons to different products that exist.” ▼ CITY HALL MASS EXODOUS OF FIRST RESPONDERS DALLAS POLICE, FIREFIGHTERS ASK FOR DELAYED BOND VOTE TO HELP PENSION. BY JACOB VAUGHN T he Dallas police and firefighters asso- ciations want to prevent a repeat of 2016 and 2017, when an extreme lack of confidence in pension funds led to a mass exodus of personnel. Now, both associations are requesting the city to delay its 2024 gen- eral obligation bond from May to November in order to stay ahead of such an outcome. Jim McDade, president of the Dallas Fire Fighters Association, told the Observer that without the date change, he could see a re- peat of when police officers and firefighters retired in droves over fears of drastic cuts to their pension benefits, which the associations believe put the public safety of the city at risk. Dallas city staff have said there is a $1.5 billion debt capacity available now. Of that, $1.1 billion is available for the general obliga- tion bond the city is considering. Some $400 million is reserved for pension use. The po- lice and firefighters associations said in an email to Bond Committee Chairman Arun Agarwal that the city is struggling with two pensions that are underfunded and urgently need to be addressed. According to The Dallas Morning News, the city has $3 billion in unfunded liabilities in the police and fire pension system, as well as another $1 billion in the employees’ re- tirement fund. The associations said that the reserved $400 million is insufficient to ad- dress the police and fire pension needs. Mayor Eric Johnson recently appointed an Ad Hoc Committee on Pensions to ad- dress both pension issues. However, this committee has yet to propose any short- term or long-term solutions. Now, the two associations are pleading with city officials to work to provide confi- dence officers need that the pension is a prior- ity, that all tools and options will remain available, and that the priority of the city is en- suring long-term stability of the pension and staffing. The associations said this could be ac- complished by delaying further action on the 2024 general obligation bond and moving the date of a voter proposition to November 2024. The associations said they recognize the recommended solution for the pensions may not include city bonding. But because of the size and urgency of the issue, they be- lieve it is inappropriate to proceed with a general obligation bond until they know these funds are not needed to secure the pension plans. “In short, the city’s debt ca- pacity must remain available as possible so- lutions for pension problems until the committee’s pension funding solution is known to be secured from other sources,” the associations said. Delaying the bond could benefit the city, too, the associations said. The city’s current bond rating is affected by the looming pen- sion issues. If a plan is devised for funding that doesn’t include the city’s general fund budget, Dallas’ bond rating could improve and increase the available debt capacity be- yond $1.5 billion, according to the associa- tions. This would allow for a larger general obligation bond proposition in 2024. McDade and others have expressed de- sires to slow down the bond process, espe- cially with the looming pension issues. “We cannot afford to lose officers like we did last time,” City Council member Cara Mendelsohn said in August, according to the News. “To move forward with this bond in May, when we don’t have a plan (for the pension), is completely irresponsible in my opinion.” McDade said the whole bond process has felt rushed. “In our opinion, the city is really rushing through this bond process and making some decisions that are quick,” McDade said. “They need to really evaluate the needs of the city before they go forward with a bond.” He said when the police and fire depart- ments made their bond presentations to the city’s public safety committee, they asked for over $600 million in the upcoming bond package. That has since been reduced to some $150 million, McDade said. “We have huge needs in police and fire that have been reduced because the city’s not sure which way they’re going with stuff,” he said. “The city needs to do a really good job of evaluating all of the needs of the city and prioritizing them because we’re not going to be able to do it all. We know that. Everybody wants a ton of stuff. We’re not going to be able to do everything. But what is the best thing?” Delaying the bond vote could help an- swer that question. ▼ GOVERNMENT DEADLY IN DALLAS U.S. REP. CROCKETT DEMANDS USPS REFORMS AFTER POSTMAN DIES IN HEAT. BY SIMONE CARTER W hen local postal worker Eugene Gates Jr. collapsed on his route during a punishing heatwave in Getty Images First responders are leaving because of lack of confidence in a future pension. Unfair Park from p6
