JD Power sues Chime over marketing campaign

• Key insights: J.D. Power is suing Chime over the neobank's alleged use of the consumer intelligence company's survey in its marketing materials. Chime said it would "vigorously" defend its position. 
• What's at stake: The lawsuit comes about seven months after J.D. Power's Financial Services Churn Data and Analytics report said Chime was the most popular destination for consumers opening new checking accounts.  
• Forward look: J.D. Power is asking the courts to require Chime to cease using its name in the neobank's marketing, engage in a corrective marketing campaign, withdraw any pending trademark applications related to "America's #1 Choice for Banking," and pay monetary damages.  

J.D. Power is suing Chime over the neobank's alleged use of the consumer intelligence company's name and trademarks in its marketing materials, igniting a fresh legal battle for the high-flying fintech. 

The suit, which was filed June 2 in the United States District Court for the Southern District of New York, alleges that Chime willfully misused J.D. Power's name and trademark in its marketing materials. J.D. Power specifically took issue with Chime's claim that it's "America's #1 Choice for Banking" and holds a "#1 ranking based on [a] J.D. Power survey," according to the complaint.  

J.D. Power alleges that Chime engaged in a breach of contract, false advertising and trademark infringement, and is asking the courts to require Chime to cease using its name in its marketing, engage in a corrective marketing campaign, withdraw any pending trademark applications related to "America's #1 Choice for Banking," and pay monetary damages.  

"Chime's conduct continues to cause significant and irreparable harm to J.D. Power, including damage to its reputation, erosion of its licensing business, and interference with its relationships with customers and licensees," according to the lawsuit.

A J.D. Power spokesperson told American Banker the company does not comment on matters that are currently in litigation and that the filing speaks for itself.

Chime refuted J.D. Power's complaint, saying that its claim as "America's #1 Choice for Banking" was based on multiple sources, not just J.D. Power's survey.  

"We disagree strongly with J.D. Power's complaint. 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," a Chime spokesperson told American Banker. 

"Additional data further affirms Chime's top-tier ranking, including our recognition as Time Magazine's #1 banking brand in 2025," the spokesperson said. "The complaint presents a selective and incomplete characterization of the facts, and we intend to defend our position vigorously." 

The lawsuit marks the beginning of what could be a prolonged legal battle if the two sides are unable to settle and comes about seven months after J.D. Power's Financial Services Churn Data and Analytics report said Chime was the most popular destination for consumers opening new checking accounts. 

Claims of trademark infringement can be difficult to prove because the complainant needs to show that the average consumer would likely mistake the defendant's product or service for the plaintiff's, or assume an official endorsement from the plaintiff. Claims of false advertising and breach of contract have a lower threshold of proof.

This is not the first time that Chime has come under fire for its marketing practices. In 2021, Chime was forced to ditch the word "bank" and "banking" from its marketing materials and website address.