SAN FRANCISCO — Financial technology company Chime is facing a lawsuit from J.D. Power over allegations that the company improperly claimed a top-ranking accolade that J.D. Power says it never awarded.
The lawsuit alleges Chime falsely advertised itself as “America’s #1 Choice for Banking” and promoted a “No. 1 ranking based on J.D. Power survey,” despite the underlying research not supporting those claims, Banking Dive reported.
According to the complaint, Chime based its marketing on a J.D. Power churn benchmarking study that tracked new account openings across eight types of consumer accounts. While Chime led in new checking account openings, it did not rank first in the study’s other seven categories, the lawsuit alleges.
‘Selective Reliance’ Alleged
“Chime’s selective reliance on a single favorable metric to support a broad ‘America’s #1 Choice for Banking’ tagline ignores the data in the very same study that contradicts the claim, as well as other J.D. Power research showing that Chime’s competitors have more total customers and accounts,” the complaint states, according to Banking Dive.
A Chime spokesperson disputed the allegations, telling Banking Dive that the company’s marketing claims are supported by publicly available J.D. Power data.
“Chime’s ‘America’s #1 Choice for Banking’ claim is supported by publicly available J.D. Power data, which reported that Chime was chosen for more new checking account openings than any other listed financial institution or financial partner,” the spokesperson told the news outlet.
The company also cited recognition it received from Time magazine in 2025.
‘Incomplete Characterization’
“The complaint presents a selective and incomplete characterization of the facts, and we intend to defend our position vigorously,” the spokesperson added.
According to Banking Dive, J.D. Power alleges it notified Chime in November that the company could not use the claimed No. 1 designation. The lawsuit contends that Chime subsequently expanded its use of J.D. Power’s name and data across advertising campaigns, press releases, materials furnished to the Securities and Exchange Commission and a trademark application filed with the U.S. Patent and Trademark Office.
J.D. Power is seeking a court order barring Chime from using its trademarks in the disputed manner and requiring the company to conduct a corrective advertising campaign designed to address potential consumer confusion, Banking Dive reported.
A spokesperson for J.D. Power did not immediately respond to Banking Dive’s request for comment.
