Eligible Cash App users are set to receive payments of up to $147 following a recent $12.5 million settlement related to a widespread texting controversy. The settlement stems from allegations that the company’s messaging practices violated consumer protection laws, prompting a class-action suit filed earlier this year. According to court documents, thousands of users who received unsolicited text messages from Cash App between 2019 and 2022 are now eligible to claim a portion of the settlement fund. The payout amounts vary based on individual claims, with some recipients potentially receiving close to the maximum amount. The settlement aims to address concerns over aggressive marketing tactics and ensure compensation for affected users.
Background of the Settlement
The legal dispute originated from claims that Cash App, a popular peer-to-peer payment platform owned by Block, Inc. (formerly Square), engaged in deceptive marketing practices by sending unsolicited promotional texts. Users reported receiving multiple messages encouraging them to use Cash App services, often without explicit consent. The class-action lawsuit, filed in early 2023, argued that these messaging tactics violated the Telephone Consumer Protection Act (TCPA), which restricts automated texts without prior explicit consent.
The court-approved settlement agreement allocates a total of $12.5 million to compensate affected users, covering claims related to both unsolicited texts and related privacy concerns. The settlement also includes provisions for implementing stricter messaging protocols and customer notification improvements to prevent similar issues in the future.
Who Is Eligible for the Settlement?
| Criteria | Details |
|---|---|
| Account Type | Active Cash App accounts during the period of January 1, 2019 – December 31, 2022 |
| Received Messages | At least one unsolicited or consented text message from Cash App during the specified period |
| Geographic Location | United States residents only |
Users who meet these conditions are eligible to submit a claim to receive a settlement payment. Those who did not receive texts or who are outside the specified timeframe are not eligible for compensation.
How Much Can You Expect?
The settlement offers payments based on the number of claims submitted, with a maximum payout of $147. The amount varies depending on the total number of valid claims and the total settlement fund. Typically, claimants will be eligible for a payment proportional to their claim, with the possibility of receiving a smaller amount if the claims exceed expected levels.
According to court documents, individuals who submit valid claims may receive:
- Up to $147 for those claiming multiple unsolicited messages
- Proportional payments for users with fewer messages
- Additional compensation for those who experienced specific adverse effects, if applicable
How to File a Claim
Eligible users can file their claims via the official settlement website, which provides detailed instructions and a straightforward form. The deadline for submitting claims is set for October 15, 2024. To ensure timely processing, claimants should prepare relevant information, such as:
- Mobile phone number associated with the Cash App account
- Details of received messages (if available)
- Proof of account activity during the relevant period
Claimants are advised to review the official notice sent by the settlement administrator or visit the dedicated settlement portal for updates and eligibility verification. The site also offers a FAQ section addressing common questions about the process.
Implications for Cash App and Users
The settlement underscores ongoing scrutiny of messaging practices among financial technology platforms. While Cash App has stated that it is committed to responsible marketing, the case highlights the importance of transparent communication policies. For users, the case serves as a reminder to review privacy settings and consent preferences within financial apps to avoid unsolicited messages.
Legal and Consumer Perspectives
Consumer advocates welcomed the settlement as a step toward greater accountability in digital marketing. “Consumers have the right to control how they are contacted and to be protected from unwanted messages,” said a representative from the Federal Trade Commission. Legal experts note that the case may influence how companies handle automated communications moving forward, especially amid increasing regulation of digital marketing practices.
Additional Resources
- Details on the TCPA – Wikipedia
- Regulatory Trends in Fintech – Forbes
- Official Cash App Legal Notices
Frequently Asked Questions
Who is eligible to receive checks following the settlement?
Cash App users who were affected by the recent texting settlement are eligible to receive checks up to $147. The settlement pertains to a $12.5 million fund allocated to compensate impacted users.
How much can eligible users expect to receive from the settlement?
Eligible Cash App users can receive checks up to $147, depending on the number of claims and the specifics of their usage during the relevant period.
When will the settlement payments be distributed?
The distribution of settlement payments is expected to occur after the claim process is finalized. Users are advised to stay updated through official Cash App notifications or settlement website for precise dates.
How can I file a claim to receive a settlement check?
To file a claim, eligible users should visit the official settlement website, complete the claim form with required personal information, and submit it within the designated deadline.
What was the reason behind the texting settlement involving Cash App?
The settlement was reached due to allegations that Cash App improperly used text messaging practices, leading to potential violations of user privacy and communication regulations, hence the compensation for affected users.
