United StatesFinance and insurance2015 – ongoing

Hello Digit

Machine-learning automated savings

Hello Digit received a $2.7 million penalty after automated savings caused overdrafts

StoppedRegulator, audit or courtOfficial ↗

Problem

Consumers wanted to build savings without manually deciding how much money to transfer from their checking accounts.

Approach

Digit used machine learning to forecast cash flows and make frequent savings transfers. The CFPB found that transfers caused overdrafts despite a no-overdraft guarantee and that the company denied reimbursement requests.

Results

$2.7 millionpenalty imposed by the CFPB in 2022Regulator, audit or court[1]

Takeaway

The regulatory action covered both the safety guarantee and the company's handling of reimbursement when transfers caused harm.

Sources

CFPB Takes Action Against Hello Digit for Lying to Consumers About Its Automated Savings Algorithm
Consumer Financial Protection Bureau10 Aug 2022Regulator, audit or court document
2021 Form 10-K
Oportun Financial Corporation2022Company publication

Source summaries

[1]Consumer Financial Protection Bureau10 Aug 2022

The CFPB found deceptive guarantees and denied overdraft reimbursements. It ordered redress and a $2.7 million penalty.

[2]Oportun Financial Corporation2022

Digit's parent described machine learning that forecast cash flows and selected savings transfers. It reported that members had used Digit to save since 2015.

Full details are in the original sources.

Added 1 Nov 2026 · Updated 1 Nov 2026