CFPB fines Oportun's Hello Digit $2.7m after its automated savings algorithm overdrafted customers

Oportun · Institution's own AI · severity 3 of 5

On 10 August 2022 the CFPB ordered Hello Digit, the automated-savings app acquired by Oportun in December 2021, to pay a $2.7 million civil penalty and redress after finding it deceived consumers. Per the CFPB, Digit's proprietary algorithm moved money out of users' checking accounts and "routinely caused" overdrafts despite a "no overdraft guarantee"; Digit denied many reimbursement requests and kept interest it had said it would not. CFPB Director Rohit Chopra said regulators must hold companies to account for "faulty algorithms". Oportun said Digit owed 1,947 users about $35 each, $68,145 in total, and that it disagreed with the CFPB but was happy to settle. The CFPB called the tool an automated-savings algorithm; it was not described as AI.

Record last reviewed Oct 21, 2026 · Markdown

Date

Aug 10, 2022

Institution

Oportun

Country

United States

AI system

Digit auto-save algorithm · Proprietary algorithm that analysed checking-account data and made automatic transfers to savings; not described as AI

AI?

Automated system not described as AI
The system was automated, but neither the institution nor a regulator described it as AI; it is listed because it is routinely discussed as an AI failure.

What happened?

Digit offered an app that, once a user connected a checking account, used "its own proprietary algorithm" to decide when and how much to move into an account held in Digit's name, charging $5 a month. It marketed the tool as saving "the perfect amount every day", said it "never transfers more than you can afford", and offered a "no overdraft guarantee" with a promise to reimburse overdraft fees, according to the CFPB consent order.[1][2]

The CFPB found that Digit knew from its inception that the algorithm was not "perfect": it relied on account data that could be stale or inaccurate and could not predict all customer, bank and ACH behaviour. Its auto-saves "routinely caused overdrafts", Digit received overdraft complaints daily, estimated that about 1–2% of users experienced overdrafts from the service, and received nearly 70,000 overdraft-reimbursement requests from 2017.[2]

Contrary to its promise, Digit capped reimbursements at two overdrafts per user until at least mid-2020 and declined over 7,200 reimbursement requests from 2017, the order says. The CFPB also found that from mid-2017 Digit told users "we don't keep your interest" while retaining significant net interest income on their funds. Most of the conduct predates Oportun's acquisition of Digit on 22 December 2021; Oportun said the CFPB opened its investigation in 2020 and that the probe was discussed during the acquisition.[2][4][5]

Banking Dive and American Banker reported the $2.7 million fine the day the order was announced. American Banker noted Digit offered its services through partner MetaBank and was bought by Oportun for roughly $213 million.[4][5]

Timeline

When did it happen?

Dated events from the sources cited below · 2 events

Dec 22, 2021
Oportun Financial Corporation acquires Hello Digit, Inc., later merged into Hello Digit, LLC.[2]
Aug 10, 2022
The CFPB issues consent order 2022-CFPB-0007: a $2.7 million civil penalty and redress for denied overdraft reimbursements.[1][2]

Impact

What was the impact?

Financial: $2.7 million civil penalty; at least $68,145 in redress · ≈ $2.7 million[2][3][4][5]
Customers: 1,947 users owed about $35 each, per Oportun; nearly 70,000 overdraft-reimbursement requests from 2017, per the CFPB[2][3][4][5]
Other: Digit estimated that about 1–2% of its users experienced overdrafts caused by the service, and it declined over 7,200 reimbursement requests from 2017, according to the consent order.[2][3][4][5]

Severity 3 of 5: Rubric 3 (regulatory finding): a CFPB consent order with a $2.7m civil penalty, but the redress was limited — Oportun said 1,947 users were owed about $35 each ($68,145) — so it does not reach the large-loss or many-customer level of a 4.

Response

How did Oportun respond?

Oportun said the investigation found Digit's success rate was "better than 99.99%", with a Digit save causing an overdraft fee "less than 0.008% of the time", and that Digit owed 1,947 members about $35 each, $68,145 in total, plus the $2.7 million penalty. "While we disagree with the CFPB on this matter, we are happy to have it settled." In the order, Hello Digit consented without admitting or denying the findings.[2][4][5]

Outcome

What was the outcome, and did regulators act?

The order bars Hello Digit from misrepresenting its auto-save tool, requires it to pay all previously denied overdraft-reimbursement requests (at least $68,145) and imposed a $2.7 million civil penalty paid into the CFPB's victims relief fund. As of 2026-10-21 the CFPB lists the case as "Post Order/Post Judgment"; no further regulatory action against Digit or Oportun on this conduct was found.[1][3]

CFPB Consent Order against Hello Digit, LLC (Aug 10, 2022, penalty $2.7 million)

Common questions

Was Digit's savings algorithm AI?

Not on the record. The CFPB described a proprietary algorithm that analysed users' checking-account data to decide when and how much to save automatically, and Director Rohit Chopra called it a "faulty algorithm". Neither the CFPB nor Oportun called it artificial intelligence, so this record classes it as automated, not AI.

Was any money lost by Digit users?

Yes. Users paid overdraft fees charged by their banks when Digit's auto-saves drained their accounts, and Digit kept interest it said it would return. Oportun said 1,947 users were owed about $35 each ($68,145) for denied overdraft reimbursements; the CFPB order required Digit to pay those requests.

Did the CFPB fine Oportun or Digit?

The consent order was against Hello Digit, LLC, a wholly owned Oportun subsidiary since December 2021. It imposed a $2.7 million civil penalty, paid into the CFPB's victims relief fund, and barred Digit from misrepresenting its auto-save tool. Oportun said it disagreed with the CFPB but was happy to settle.

Did the conduct happen before Oportun bought Digit?

Mostly. The CFPB's findings cover conduct from 2017 onward, and Oportun acquired Digit on 22 December 2021. Oportun said the CFPB opened its investigation in 2020 and discussed the probe with Oportun during the acquisition. The order was issued in August 2022, after the purchase.

Sources

CFPB Takes Action Against Hello Digit for Lying to Consumers About Its Automated Savings Algorithm official
Consumer Financial Protection Bureau · Aug 10, 2022
“Hello Digit represented that its tool "never transfers more than you can afford," and it provided a "no overdraft guarantee." But instead, Hello Digit routinely caused consumers' checking accounts to incur overdraft fees charged by their banks.”
Consent Order, In the Matter of Hello Digit, LLC, File No. 2022-CFPB-0007 official
Consumer Financial Protection Bureau · Aug 10, 2022
“But since its inception, Digit knew that its algorithm was not "perfect" and had limitations that hampered the Company's ability to precisely predict an appropriate amount to withdraw from consumers' checking accounts.”
Enforcement action: Hello Digit, LLC (2022-CFPB-0007) official
Consumer Financial Protection Bureau · Aug 10, 2022
“The order enjoins Hello Digit from making any misrepresentations related to its auto-save tool and requires that Hello Digit provide at least $68,145 in redress to all consumers who were denied reimbursement requests for overdraft fees caused by Hello Digit's auto-save tool.”
CFPB fines fintech Digit $2.7M over 'faulty' savings algorithm news
Banking Dive · Aug 11, 2022
“Oportun, in a statement Wednesday, said it disagrees with the CFPB on the matter, but is "happy to have it settled."”
CFPB fines mobile savings app Digit $2.7 million for overdraft charges news
American Banker · Aug 10, 2022
“The CFPB opened its investigation into Digit in 2020 and Oportun discussed the CFPB probe during the acquisition process, an Oportun spokeswoman said.”