What Is the Chime Settlement About?

The case centers on whether Chime’s referral program unlawfully encouraged users to send promotional text messages to their contacts. Consumers allege that these texts were delivered without their permission, potentially breaching state law. Under CEMA, each violation could entitle the recipient to $500 in damages.

How the Referral Program Worked

• Existing users could share a referral link by text, email, or social media.
• If the recipient signed up and made a qualifying deposit, both parties earned a financial reward (often $100 each).
• Messages were pre-written within the app, making it easy to send them to entire contact lists with one tap.

Attorneys argue that this process essentially turned customers into unpaid marketers—without the consent of the people receiving the texts.

Washington’s Commercial Electronic Mail Act (CEMA)

CEMA, originally passed in 1998 and expanded in 2003, was designed to reduce spam and protect consumer privacy. The law specifically:

• Prohibits businesses from sending or helping send promotional texts without clear, prior consent.
• Grants recipients the right to pursue compensation of $500 per illegal message.
• Allows lawsuits and settlements when companies fail to comply.

Who Could Benefit From the Chime Settlement?

Washington Residents

If you live in Washington and received a Chime referral text message, you may qualify to join the settlement. Even if the message came from a friend or family member, the law holds Chime responsible if it helped send the communication.

Example Scenario

• A Chime customer texts their friend: “We’ll both earn $100 when you join Chime and set up a deposit.”
• The friend never consented to receive promotional texts.
• Under CEMA, that friend could be entitled to $500 in damages.

Past Settlements Under CEMA

Chime is not the first company facing scrutiny under this law.

• In 2024, Robinhood paid $9 million to settle claims involving referral texts.
• In 2025, Block, Inc. (Cash App) agreed to a $12.5 million settlement for similar allegations.

These outcomes suggest that Washington courts take CEMA violations seriously—and consumers have successfully recovered compensation in similar cases.

Possible Outcomes of the Chime Settlement

If the lawsuit succeeds, outcomes may include:

• Chime settlement payout per person: Eligible consumers could receive up to $500 for each illegal text.
• Chime settlement payout date: Payments would be issued after court approval and claim verification.
• Changes to Chime’s referral program: The company may need to alter how it manages customer referrals to comply with Washington law.

How to Apply for the Chime Settlement

If a settlement or judgment is reached, consumers may need to:

1. Visit the Chime settlement website.
2. Complete a Chime settlement claim form.
3. Provide evidence, such as a screenshot of the referral text.
4. Track their Chime settlement application status online.

This case highlights growing legal concerns about referral-based marketing. Companies that rely on customer contact lists may face lawsuits if they don’t obtain clear consent. For consumers, it underscores the importance of privacy rights and the potential for legal remedies when those rights are violated.

Practical Guidance for Individuals

• Save Evidence: Keep any Chime referral texts you received.
• Monitor Settlement Updates: Check the official settlement website when it launches.
• Submit on Time: File claims before the deadline to secure eligibility.
• Know Your Rights: If you receive other unsolicited texts, you may have legal recourse.