Cash App owes millions (again) to its users. Are you eligible?
Cash App users may receive a refund from the mobile banking platform after a federal agency ordered the company to pay out $175 million for its weak security procedures, the second such major settlement in recent months.
The Consumer Financial Protection Bureau earlier this month ordered Cash App’s parent company Block Inc., which owns Square, Spiral and TIDAL in addition to Cash App, to refund users $120 million. The order also includes paying $55 million into a government relief fund to help those “harmed by companies that break federal consumer financial protection laws.”
Here’s what Cash App users in Kentucky need to know to ensure they’re compensated by the mobile banking platform.
What is Cash App accused of doing?
The CFPB, which enforces federal consumer finance laws, claims Cash App “tricked” its customers by allowing fraud to proliferate on its mobile app. It closed cases of reported fraud without opening a legally required investigation, the agency said.
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In some cases where Cash App users suffered financial loss, according to CFPB, Block directed its users to ask their bank to reverse the transactions — requests Block Inc. would subsequently deny.
“Cash App created the conditions for fraud to proliferate on its popular payment platform,” said CFPB Director Rohit Chopra in a news release. “When things went wrong, Cash App flouted its responsibilities and even burdened local banks with problems that the company caused.”
Cash App’s ‘Terms of Service’ used to ‘trick’ customers, agency says
The bureau said Cash App attempted to keep its operating costs low by using its “Terms of Service” to trick consumers into thinking disputes were the responsibility of their bank, which is against federal law.
The Electronic Fund Transfer Act, the CFPB said, generally requires mobile banking platforms like Cash App to investigate disputes of unauthorized transactions.
“…A company cannot simply use fine print to escape these legal requirements,” the CFPB said. “When it did conduct investigations, Block used intentionally shoddy investigation practices to close reports of unauthorized transactions in the company’s favor.”
A telephone number to Cash App ‘customer service’ was anything but.
Cash App users were deprived of “meaningful and effective customer service,” according to the CFPB, when trying to find help after being defrauded. A telephone number on the back of its Cash Card and Cash App Terms of Service for many years, the agency writes, did not connect consumers to customer support.
Instead, the phone number directed users to a pre-recorded message advising them to contact customer support through its app. Doing so often led to “delayed, inadequate, confusing or inaccurate responses,” according to the CFPB.
Scammers targeted Cash App looking for customer service
People who searched online for a way to speak with a Cash App customer service representative were targeted by scammers, writes the CFPB, who posed as Cash App representatives and tricked customers into giving up their passwords and personal information.
“Block knew that its customers were being targeted by fraudsters in this way but failed to take timely action to address the issue,” according to the CFPB.
How much money will Kentucky Cash App users get?
At this moment it is unclear how many users will be refunded, who could qualify, how much money will be paid to each or when the payment will be issued. However, users were told they do not need to take any action at this time to receive a refund.
A $15 million settlement last year against Cash App put as much as $2,500 into the hands of users affected by a security breach.
Cash App settlement:Miss the deadline for Cash App class action settlement? Here’s what you need to know
Am I eligible for the Cash App settlement?
Cash App users who qualify for the settlement include:
- Consumers who did not receive refunds to which they were entitled for fraudulent transactions.
- Consumers whose accounts had unauthorized transfers or transactions not adequately investigated by Cash App and Block.
- Consumers who had accounts locked as a result.
- Consumers who did not receive provisional credits during delayed investigations.
Do Cash App users need to file a claim?
No. According to the Consumer Financial Protection Bureau, consumers will not need to take action to get their payout, as the agency will identify and ensure payment to all impacted parties.
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Cash App ordered to change the way it handles customer service
In addition to paying millions in fines, Block Inc. will have to change the way it handles its customer service. According to the bureau, the order requires Block to set up a 24-hour, live-person customer service, as well as investigate unauthorized transactions and provide timely refunds, where appropriate.
Who to contact if you have questions about the settlement
Cash App users who have questions about the settlement are encouraged to contact Block Inc., according to the CFPB. Here’s how:
- Toll-free phone: 1-888-488-1181
- Email: [email protected]
- Mail:
- Cash App MSC 210
- 1955 Broadway, Suite 600
- Oakland, CA 94612.
How will Cash App users get their refund?
Refunds might be determined on whether you’re an active Cash App user or not. Customers who used Cash App in the past six months could get a credit on their Cash App account, according to the agency. Those who haven’t made transactions on the app might receive a payment separate from the app.
Submit a complaint about financial products or services
Consumers with complaints about financial products and services can file them online at the CFPB’s website or by calling (855) 411-CFPB (2372).
Has your company violated federal consumer laws? Here’s who to contact
Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to [email protected].
Where’s my refund?:When can I expect my tax refund from the IRS? How to track your refund status in Kentucky.
USA TODAY Network reporter Susan Tompor contributed to this article.
John Tufts covers trending news for IndyStar and Midwest Connect. Send him a news tip at [email protected]. Find him on BlueSky at JohnWritesStuff.
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