Digital payment platforms have been on the rise in recent years, with people ditching physical cash and going for more types of digital payments. Like with every innovation and invention, a lot of new concerns regarding safety and privacy arise with it. It becomes essential for companies to take accountability when things go south in their security measures, especially since they are handling such sensitive data of millions of people. The accountability stage is where Cash App and its parent company, Block, Inc., have found themselves.

The sad part is that this Cash App settlement lawsuit could have been easily avoided if the Cash App management had paid any heed to the years of complaints by customers regarding customer service failures and data breaches. As they say, disaster strikes twice, and it certainly did for Cash App in the form of not one more separate Cash App settlement lawsuit.

The financial aspect of this whole Cash App settlement lawsuit debacle seems to really hit hard for Cash App. To be more specific, they had to cough up a hefty sum of $15 million for their class action settlement and to top it all off, they also had to pay out $175 million as ordered to them by the Consumer Financial Protection Bureau (CFPB). The primary objective of this Cash App settlement lawsuit was mainly to compensate the poor souls who had their money stolen and to promote better service and security practices for the future.

What Sparked The Fire for This Cash App Settlement Lawsuit?

Have you used any of the Cash App services in the time period of 2018? If yes, chances are you might have been eligible to claim your part of $2500 from a total of $15 million Cash App settlement lawsuit as a result of a class action lawsuit. The company that owns Cash App Investing and Cash App, Block Inc., was accused of breaching obligations they made with their users in 2022 and negligence. The culprit for the breach of obligations was a former employee who somehow managed to gain access to account data without having the authority or permission to do so. This incident was reported by Block in a 2022 filing with the U.S. Securities and Exchange Commission. An additional report was made about the notification sent by Block to approximately 8.2 million of its former and current users about this security breach and violation of trust.

Though, this wasn’t the only instance where Block was found to be negligent. In 2023, ‘an unauthorized user’ was once again able to gain access to some Cash App accounts by making use of some old phone numbers that people connected to those accounts, which landed them right in the middle of another Cash App settlement lawsuit. Things don’t just end there, though. Cash App and Block were also accused of being unable to take the required steps to protect user accounts even after those two incidents.

How Were Claims Filed By Users?

Any customers affected by this data and security breach were required to file a claim under the category of transaction-based losses. This requirement applies to individuals who suspect these two security and data breaches have harmed their Cash App or Cash App investing accounts. In short, anyone who thinks their Cash App or Cash App Investing accounts were in the hands of unsavory individuals could have filed a transaction-based losses claim by the previously mentioned deadline of November 18, 2024, 11 P.M PT to reap some rightfully deserved compensation from this Cash App settlement lawsuit.

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Who Was Eligible for This Cash App Settlement Lawsuit Payout?

This Cash App settlement lawsuit claim was filed on the portal provided by Cash App on their official website, cashappsecuritysettlement.com. This portal was designed while keeping users’ ease at the forefront. The customer base was divided into two types: those who received a specialised notice about this settlement and those who did not. The process of claim submission also differed for the two customer types. Ones with the notice were asked to submit their claims alongside their Notice ID and confirmation Code. Those without such a notice were not deprived of their ability to file claims. These users could still submit their relevant information and documents to prove they are eligible for the court-mandated payout of $2500. However, it is necessary to remember that people were only allowed to file a claim form once. It did not matter whether one account was involved or multiple accounts were affected.

What Were the Forms of Compensation Provided in This Cash App Settlement Lawsuit?

This Cash App settlement lawsuit made sure that people were reimbursed for their losses, whether it was their money, time, or emotional distress, one way or another. These compensations were further divided into multiple categories for the ease of reimbursement for all the people affected. Without any more stalling, let’s dive deeper into what these categories were:

Out Of Pocket Losses Retribution (Up to $2500):

The most amount of money set aside by this Cash App settlement lawsuit was for those people who outright suffered from financial loss due to the usage of unauthorized transactions, identity theft, or withdrawals that were fraud and were not able to somehow recover this money through any of the previously available methods. These people were eligible to receive up to $2500 as a form of compensation. You needed one of these four main things to qualify for this grant by the Cash App settlement lawsuit:

Transaction history or bank statements documenting the fraudulent activity.

Messages or emails exchanged with the Cash App support team.

In the case of fraud or theft, police reports.

Any other documentation showing that you attempted to resolve the issue in cooperation with Cash App.

Lost Time Compensation (Up to $75):

Recognizing that dealing with these fraudsters led to a loss of time on both sides, the customers and Cash App, this Cash App settlement lawsuit also provided monetary compensation to people who were unfairly locked out of their accounts or had to deal with slow customer service. Those lost hours certainly would not come back in the physical sense, but if users had a reasonable explanation for time lost, they were eligible to be reimbursed in the monetary value of $25 per hour to a maximum payout of $75 for all the user’s time wasted. What exactly qualifies as time wasted? Well, to keep it simple, these four things:

• Requiring to get in touch with customer service more than once.
• If complaints were filed or charges were disputed.
• Gathering of documentation to report fraud.
• Trying to regain control of your frozen or locked account.

Reimbursements for Transaction Errors:

In the case of users suffering from incorrect amount charges, duplicate payments, unprocessed refunds, or unauthorized purchases, they were liable for actual fiscal compensation equal to the value of the transaction error that took place. Like all the previous categories mentioned, some sort of proof, like bank records, screenshots, transaction receipts, or accounts from Cash App themselves, displays the inconsistency.

This category of compensation from the Cash App settlement lawsuit was specifically curated for users who had the unfortunate luck of running into blunders by customer services or technical glitches that cost them their money.

When Will The Users Be Compensated By This Cash App Settlement Lawsuit?

The finalization of this class action lawsuit may have already taken place, but the actual process of distribution of the actual money and processing of the claims themselves will take a lot more time. Many experts and media publications like Men’s Journal estimate that the time taken to reimburse users will reach well within the latter half of 2025, and that is keeping in mind that no other setbacks or issues will pop up in this Cash App settlement lawsuit.

What Should You Do If You Missed Out On The Deadline Of This Cash App Settlement Lawsuit?

Missing the deadline of November 18, 2024, might mean that you lose the ability to file a claim, but it doesn’t have to mean that you remain completely helpless. Depending on the implementation of this deadline, you might still be able to reap benefits from the actions of the CFPB. Again, you might not be able to file class action claims, but you can still take these steps:

Inquire the CFPB about any form of review of late claims.

In the case of additional legal actions, keep documentation of interactions with Cash App at hand.

Summarizing This Whole Cash App Settlement Lawsuit

In short, Cash App is required to take these steps:

1. Pay a total of $120 million to affected customers who did not have their unauthorized transfers investigated, customers who did not receive their entitled refunds, and finally, to users who had their accounts locked for a long time.
2. To make sure that this type of blunder never happens again, the order mandates Block to set up a 24-hour, live-person customer service.
3. Finally, Block is to pay $55 million in fines to the CFPB.