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ARTICLE · 01 SEPTEMBER 2025

CFPB Files Complaint Against Synapse Financial Technologies

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The CFPB has filed a complaint against Synapse Financial Technologies Inc, alleging that the company engaged in unfair acts and practices in violation of the Section 1036(a)(1)(B) of the CFPA...

United StatesTechnology
Kristen Larson
Kristen Larson
Ronald K. Vaske
Ronald K. Vaske
Joseph Schuster
Joseph Schuster
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The CFPB has filed a complaint against Synapse Financial Technologies Inc, alleging that the company engaged in unfair acts and practices in violation of the Section 1036(a)(1)(B) of the CFPA by failing to maintain sufficient records of the location of consumers' funds, failing to ensure the records matched the records maintained by its partnering banks, and causing consumers to lose access to their funds.

Synapse is a Delaware corporation that principally operated in Woodland Hills, California. It provided proprietary technology and software that was a bridge between nonbank fintech platforms that offered banking services to consumers and traditional partnering banks.

On April 22, 2024, Synapse filed for chapter 11 bankruptcy protection. The complaint was filed in the U.S. Bankruptcy Court for the Central District of California.

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