The Consumer Financial Protection Bureau is preparing to sue Synapse Financial Technologies for what it says are unfair practices tied to inadequate record-keeping of consumer funds.
The CFPB and Synapse’s Chapter 11 trustee, Jelena McWilliams, are negotiating a proposed stipulated final judgment to settle the complaint, including nominal monetary penalties, the trustee said in a Thursday filing in the US Bankruptcy Court for the Central District of California.
Synapse, which filed for bankruptcy in April 2024, shut down services about a month later to several fintech and bank partners, including Evolve Bank & Trust and Yotta Technologies. Customers of those ...
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