Cash App Will Pay $45 Million in New Settlement: Here's Who Qualifies
The settlement is to resolve allegations that the company misled users about fraud protections.
Cash App's parent company, Block, has reached a $45 million settlement with 46 states and Washington D.C. This settlement aims to address allegations that Block misled users about fraud protections and failed to properly secure customer funds on its popular peer-to-peer payment platform. The company had promised users their money was safe, but many Oregonians and Americans, without other options, believed them.
When problems arose, Block left them with nowhere to turn, according to Oregon Attorney General Dan Rayfield. The $45 million settlement is primarily between Block and state regulators, and most customers might see minimal impact. The settlement stems from claims that Block marketed Cash App as a safe alternative to traditional banking while failing to provide adequate protections, investigate unauthorized transactions, and maintain adequate customer support.
Block has denied any wrongdoing as part of the settlement. While customers won't need to file a claim for the $45 million payout, as funds are being paid to participating states rather than directly to users, there is a separate CFPB enforcement action that requires Block to pay at least $75 million in consumer restitution, with total restitution potentially reaching $120 million.
Eligibility generally covers users who experienced unauthorized transactions or were improperly denied assistance or reimbursement. The new settlement requires Block to enhance its fraud-prevention measures and improve customer support for Cash App users.
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