Cash App users might be eligible to receive a part of a $15 million settlement after the app’s parent company, Block, Inc., agreed to pay out due to a class action lawsuit.
The lawsuit was filed over unauthorized transactions, fraud, and account freezes that affected Cash App customers. This legal case is just one example of how fintech companies are facing lawsuits over user rights and security concerns.
Over the years, Cash App has grown to be one of the most popular peer-to-peer payment platforms in the United States. However, issues like fraudulent charges and account freezes have raised serious concerns about user safety and privacy.
What Is the Cash App Settlement About?
The Cash App settlement stems from claims that users faced unauthorized charges or their accounts were unfairly frozen, with no proper resolution. Many users were also affected by data breaches. The $15 million settlement is intended to compensate these customers for monetary losses, emotional stress, and any damage to their reputation caused by these issues.
Who Is Eligible for a Payout?
To qualify for a share of the settlement, you must meet one of the following criteria:
1. Unauthorized Access
This applies to users whose personal information, including data from their Cash App or Cash App Investing account, was accessed or disclosed without permission.
2. Fraudulent Transactions
If money was taken from your account without your consent, and you reported this to Cash App, you may be eligible for compensation.
3. User Status
This is for anyone who used Cash App’s services, including Cash App Investing and any related services.
4. Resolution Issues
If you faced difficulty resolving account issues between August 23, 2018, and August 20, 2024, you might be eligible for this settlement.
How Much Will Claimants Receive?
The amount that claimants can receive varies. The maximum payout is $2,500. However, keep in mind that the actual amount you’ll receive will depend on the number of claims submitted and the details of your case. For example, users who faced more severe issues like fraudulent transactions or long account freezes might get a larger share.
How to Apply for the Settlement
The deadline to apply for the settlement was November 18, 2024. To apply, claimants needed to submit a claim form along with any supporting documentation (like account statements) showing that they were affected by fraudulent activity or account issues.
The final hearing for the lawsuit took place on January 13, 2025.
When Will Payments Be Sent?
Settlement payments will likely be sent out by the end of 2025, after all claims are processed. Payments will either be made through direct deposit or by check in the mail. You can track the status of your claim and find out more details on the Cash App Security Settlement website at cashappsecuritysettlement.com.
If you’re waiting for a payment, make sure you’ve selected your preferred payment method. Direct deposit is typically faster than receiving a check by mail.
What to Do While You Wait?
While waiting for your settlement, here’s what you can do:
- Track your payment: You can monitor the status of your claim on the settlement website.
- Choose your payment method carefully: Direct deposit is quicker than waiting for a check.
- Be patient: Settlement payouts can take time, and the process may take up to 4-5 working days before the settlement administrator can provide an update.