On August 11, 2025, the Banking Dive reported that the CFPB is preparing to file an adversary proceeding complaint against now-bankrupt Synapse Financial Technologies for alleged unfair acts or practices and failure to maintain adequate records of consumer funds. Synapse was a banking-as-a-service (BaaS) company that facilitated partnerships between fintech companies and banks.
According to the report, the CFPB plans to allege that Synapse failed to maintain adequate records of the location of consumers’ funds and failed to ensure those records matched the records maintained by the partner banks, causing consumers to lose access to their funds. Synapse filed for bankruptcy in April 2024, where, according to reports, more than 100,000 consumers’ funds were frozen and many consumers still wait to be made whole as accurate ledgers tracking who the money belonged to and where it was held not maintained
A court document noted that Synapse’s Chapter 11 trustee and the CFPB are negotiating a proposed stipulated final judgment that would include “nominal monetary penalties,” which they’ll seek a judge’s approval of.
Read the Banking Dive’s full article here.
