Cash App users in Illinois could soon receive a paycheck following a significant legal action against the mobile payment platform.
The Consumer Financial Protection Bureau (CFPB) has ordered Cash App's parent company, Block Inc., to pay $175 million due to its insufficient security measures that allowed fraud to proliferate on the app.
Here’s what Cash App users need to know about the settlement, eligibility, and how much money they could receive.
The Consumer Financial Protection Bureau (CFPB), the federal agency that enforces consumer finance laws, has accused Cash App of misleading and deceiving its customers. According to the CFPB, Cash App’s weak security practices enabled widespread fraud on its platform, leaving users vulnerable to scams.
Cash App allegedly closed fraud cases without conducting legally required investigations and sometimes directed users who lost money to their bank, only for the bank to deny the reversal request.
“Cash App created the conditions for fraud to thrive on its popular payment platform,” said Rohit Chopra, Director of the CFPB. “When issues arose, Cash App failed to take responsibility and even shifted the burden onto local banks, worsening the situation for its customers.”
Furthermore, Cash App is accused of misleading users into thinking that banks were responsible for handling dispute resolutions, which violates federal consumer protection laws. The company also failed to provide meaningful and effective customer service when users sought help after being defrauded, which led some users to unknowingly interact with scammers online.
"Block, Inc. knew about the fraud issues and failed to take swift action to protect its users," the CFPB stated in its release.
Though the exact amount users will receive remains unclear, the CFPB’s recent order for Cash App to pay out $175 million includes a $120 million refund for defrauded users. Additionally, $55 million will be paid into a government relief fund designed to help those harmed by companies that violate federal consumer financial protection laws.
In a previous settlement, Cash App paid out $15 million, with users receiving up to $2,500 for damages caused by a security breach.
The exact timeline for when users will receive compensation has not been confirmed, for further details on settlements, please visit the Lawyer Monthly dedicated Cash App Guide.
Good news for Cash App users—there is no need to take action at this time. The CFPB's settlement order stipulates that Cash App users do not need to sign up or take any steps to receive the refund. Users who are eligible will automatically be notified.
Cash App users who may qualify for a refund under the settlement include:
If you fall into any of these categories, you may be eligible for a refund as part of the settlement.
If you have questions regarding the settlement or your eligibility for a refund, you can contact Block, Inc., Cash App’s parent company, using the following methods:
Toll-Free Phone:
1-888-488-1181
Email:
CFPBinquiry@cash.app
Mailing Address:
Cash App MSC 210
1955 Broadway, Suite 600
Oakland, CA 94612
Cash App users in Illinois could be entitled to refunds following a $175 million settlement involving the company’s weak security measures and failure to prevent fraud. Those affected by unauthorized transactions, improper investigations, and poor customer service may qualify for compensation. Users do not need to take any action at this time, and further details will be provided once the payment process begins.
For ongoing updates, Cash App users are encouraged to monitor official communications from the company and the CFPB.
