The Department of Financial Protection and Innovation (DFPI) of
California entered a
settlement agreement with Chime Financial, Inc. (Chime), a
neobank company that is not licensed to operate as a bank or
otherwise exempt from licensure, but works with banking partners to
issue consumer banking products. The DFPI found that Chime
potentially violated California Financial Code Sections 561 and 563
by (1) using the website "chimebank.com" and (2) using the words
"bank" and "banking" in certain other aspects
of its business.
As part of the settlement, Chime will stop using the website
"chimebank.com" in its business unless and
until it becomes a licensed bank. Moreover, Chime is required to
perform a review of its webpage and advertising to further clarify
any references where the term "banking" is used and
bolster its description of its role as a "technology, business
processor, and marketing service provider to its Bank
Partner(s)." It is required to make any such
