Block Inc., the parent company of Cash App, entered a settlement with the Consumer Financial Protection Bureau (CFPB) in January 2025 for the refund of up to $120 million to affected Cash App users. It is intended to cover claims of fraud mishandling and poor customer service practices.
Background of the Settlement
According to the CFPB investigation conducted on Cash App, the company weak protocols in terms of security which left its users completely open to unauthorized transaction and fraud. Instead of investigating the case for fraud reported by customers, it has redirected them to either contact their banks or finance companies for claims that have been, most times, denied, without possibility of getting any compensation. It also lacks a proper and effective channel of customer service, which becomes difficult for those facing problems and reporting issues.
Details of the Refund Process
Under the settlement agreement, Block is to give refunds to Cash App users who had unauthorized transactions between July 1, 2019, and now, and they were not investigated or not resolved. Those eligible for refunds include those persons who had filed notices of errors regarding unauthorized transfers and got no refunds from Block and those accounts frozen unjustly for more than 14 days. Block has 120 days from the settlement date to establish the way and procedure for its compensatory actions, while the maximum limit for total payout rests at $120 million.
How Does One Claim Your Refund?
No action has to be taken by affected customers for their refunds as the Block would locate qualifying customers and inform them of the procedures for refunds. Knowing every Cash App announcement and keeping abreast of any that come from that company, however, is a good idea. For further assistance, users can get in touch with Cash App support through the application or by calling customer service.
Block’s Response and Future Measures
Block has agreed to a settlement but is not admitting any wrongdoing. Block justified that ‘historically raised issues do not reflect the present experiences with Cash App’ and indicated actions to enhance customer services and measures for security, particularly a commitment to launching 24-hour live customer support and revamped dispute investigation processes to prevent such occurrences.
Conclusion
This $120 million refund initiative goes to show that the digital payment platform takes consumer protection very seriously. Cash App users who might have been affected by unauthorized transactions or poor customer service since July 2019 can look forward to more updates about refunds. Keep a lookout, then, because keeping yourself updated will guarantee affected persons can easily get back their money.
