Chime Class Action Lawsuit: Washington Text Messages Under Investigation

Attorneys working with ClassAction.org are investigating whether a class action lawsuit can be filed against Chime for sending potentially illegal text messages to Washington residents inviting them to sign up with the financial services app.

Specifically, they have reason to believe the fintech company’s text referral program, which financially incentivizes—and helps—existing users text friends and family to join Chime, may violate Washington’s Commercial Electronic Mail Act (CEMA). The CEMA strictly prohibits companies from sending residents promotional text messages without prior consent­—and attorneys are now looking into whether Chime got Washington recipients’ consent before helping send these messages.

Under the CEMA, recipients of illegal text messages could be owed $500 per violation.

What Is the Washington Commercial Electronic Mail Act?

The Commercial Electronic Mail Act is a state-specific consumer protection law first enacted in 1998 and designed to reduce unwanted, misleading, or otherwise “spammy” emails. In 2003, the law was amended to also restrict the transmission of unsolicited promotional texts to the cell phones of Washington residents.

The CEMA explicitly prohibits businesses from initiating or assisting with the transmission of promotional text messages unless the recipient has given clear and affirmative consent in advance to receive them.

How Could Chime’s Messages Be Illegal?

Attorneys believe that if Chime initiated or helped users send promotional texts without first getting recipients’ consent, the messages could be illegal under Washington law.

Chime’s referral program works like this: if an individual signs up for the app using an existing customer’s referral link (which can be shared via text, email or social media) and meets certain criteria, both receive a financial reward—for instance, $100.

To refer a friend via text, users simply have to open the app, select contacts from their phone and send a prepopulated message inviting friends and family to join Chime—essentially doing Chime’s marketing work for them. For example, the message may say something like “We’ll both earn $100 when you join Chime and receive a qualifying direct deposit!” and will likely appear as an “interruption” in an otherwise private, personal exchange between two individuals.

Past Settlements Under the Washington Commercial Electronic Mail Act

A handful of proposed class action lawsuits involving violations of the CEMA have resulted in settlements for Washington residents.

For instance, in February 2024, a $9 million settlement was approved to resolve claims that Robinhood Financial broke the CEMA with its refer-a-friend text message program. Additionally, in mid-2025, Block, Inc. agreed to pay a $12.5 million settlement to resolve a proposed class action lawsuit that alleged the company violated the CEMA by incentivizing users to send unsolicited text messages to state residents through Cash App’s “Invite Friends” referral program.

How Could a Chime Class Action Lawsuit Help Consumers?

A Chime class action lawsuit could help consumers recover money for any potentially illegal spam messages they were sent and force the company to change how referral texts are sent to Washington residents.

Did You Receive a Referral Text About Chime? 

Before commenting, please review our comment policy.