Cash App Will Pay $45 Million in New Settlement: Here's Who Qualifies
Summary
Block, the company behind Cash App, will pay $45 million to 46 states and Washington, D.C. in a settlement over claims it misled users about fraud protections and did not properly protect their money. Customers affected by fraud may also receive compensation through a separate Consumer Financial Protection Bureau (CFPB) program.Key Facts
- Block agreed to a $45 million settlement with 46 states and Washington, D.C. regarding Cash App.
- The settlement addresses claims that Cash App misled users about how safe their money was.
- Users’ money was not adequately protected against fraud or unauthorized transactions.
- Cash App allowed accounts with weak identity checks and provided limited customer support.
- Users seeking help were sometimes misled by fake customer service numbers run by scammers.
- The $45 million will go to the states, so most customers do not need to file claims for this settlement.
- A separate CFPB order requires Block to pay $75 million to $120 million in restitution to users harmed by fraud or denied help.
- The case highlights issues in fintech firms acting like banks but without the same protections.
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