Retirees, Be Aware of the Murky Rules Behind Financial Apps
Stephen Piepgrass, a partner in Troutman Pepper's Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, is quoted in the Kiplinger article, " Retirees, Be Aware of the Murky Rules Behind Financial Apps." The article was also republished on Nasdaq and Yahoo! Finance.
That protection includes an established process to resolve a problem when, for example, a bank fails or customers can't access their accounts. With neobanks, the processes are less clear. Customers of Chime, a neobank, discovered this when they couldn't use their debit cards or access their money temporarily last year. Chime said it had closed a slew of accounts, some of them by mistake, after detecting suspicious activity. Eventually, most depositors seemed to resolve their concerns by working with Chime, says Stephen Piepgrass, a partner in the government enforcement, compliance and investigations group practice at law firm Troutman Pepper. Nevertheless, the situation highlighted a murky area for neobank customers. "The Chime situation is a good example that there are always growing pains in new industries," Piepgrass says.