Eisen and Checkbook partnered to help financial institutions streamline payment disbursements and ensure compliance with consumer protection regulations.
The companies’ new Disbursement Hub is designed to help financial institutions meet the challenge of the evolving regulatory landscape around account closures and fund disbursements, according to a Thursday (May 16) press release.
“Our strategic partnership is a crucial step to help financial institutions navigate the complexities of compliant offboarding and consumer protection, without dedicating an entire team to manage the process,” Eisen CEO Allen Osgood said in the release.
The partnership brings together Eisen’s account offboarding solutions for financial institutions and Checkbook’s platform that focuses on digital payment solutions and helps businesses simplify their disbursement process and scale their payouts, according to the release.
The Disbursement Hub provides a way for banks and FinTechs to mass disburse payments in an expedited and scalable manner on short notice, the release said.
In addition, for any payments that remain uncashed, Eisen monitors them for escheatment and ensures compliance with state laws, per the release.
Checkbook’s capabilities enable the Disbursement Hub to replace manual workflows, reduce errors, save time and ensure compliance with regulatory guidelines, according to the release.
“We are thrilled to partner with Eisen to solve this industry problem and enable financial institutions to not only seamlessly disburse payments for account closures, but also monitor those funds, and escheat them compliantly as necessary,” Aditya Raikar, vice president of partnerships at Checkbook, said in the release.
In other news about account closures, the Consumer Financial Protection Bureau said May 7 that Chime Financial will pay at least $1.3 million in redress to consumers and $3.25 million in penalties as part of a settlement.
The CFPB found that the nonbank company illegally delayed customer refunds when customers closed their accounts, withholding these balance refunds longer than the 14 days its policy specified until 2021.
“Fast-growing financial firms must treat their customers fairly and understand that federal law is not a suggestion,” CFPB Director Rohit Chopra said at the time.
Reached at the time by PYMNTS, Chime Financial said most of the delayed refunds were caused by a configuration error with a third-party vendor during 2020 and 2021.
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