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Don't Bank On Using Bank In A URL


Friday, May 14, 2021
About eight years ago, I wrote about Section 201(a) of the California Corporations Code which prohibits the Secretary of State from filing articles of incorporation  setting forth a name in which “bank,” “ trust,” “trustee,” or related words appear, unless a certificate of approval of the Commissioner of Financial Protection & Innovation is attached thereto.  The statute quite clearly does not prohibit a corporation from using the word bank in its business.
Chime Financial Inc. quite obviously doesn t use bank as part of its name.  However, Chime used Chimebank.com as URL address until February of last year when the DFPI came knocking.  The DFPI found that the use of Chimebank.com violated Section 561 of the Financial Code.  That statute does not absolutely forbid the use of the word bank but it does generally forbid use of the corporate or artificial names or words suggesting that a person is a bank or engaged i ....

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Don't Bank On Using "Bank" In A URL | Allen Matkins


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About eight years ago, I wrote about Section 201(a) of the California Corporations Code which prohibits the Secretary of State from filing articles of incorporation  setting forth a name in which “bank,” “ trust,” “trustee,” or related words appear, unless a certificate of approval of the Commissioner of Financial Protection & Innovation is attached thereto.  The statute quite clearly does not prohibit a corporation from using the word bank in its business.
Chime Financial Inc. quite obviously doesn t use bank as part of its name.  However, Chime used Chimebank.com as URL address until February of last year when the DFPI came knocking.  The DFPI found that the use of Chimebank.com violated Section 561 of the Financial Code.  That statute does not absolutely forbid the use of the word bank but it does generally forbid use of the corporate or artificial names or words suggesting that a pe ....

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Chime Financial Fintech Cannot Claim it is a Bank | Troutman Pepper


The Department of Financial Protection and Innovation (DFPI) of California entered a
settlement agreement with Chime Financial, Inc. (Chime), a fintech 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 ....

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