Eligible Cash App users are set to receive cash payments of up to $147 following a recent settlement linked to a $12.5 million class-action lawsuit. The legal dispute centered on claims that Square, Inc.—the parent company of Cash App—improperly sent unsolicited text messages to users without their explicit consent, violating federal telemarketing laws. The settlement, approved by a court earlier this month, aims to resolve allegations of illegal marketing practices and provides eligible users with financial compensation. Payments are expected to be distributed through direct deposit or Cash App balances, with the process beginning immediately for those who filed valid claims. This development underscores ongoing scrutiny of digital financial services’ marketing tactics and highlights the importance of consumer privacy protections in the rapidly evolving fintech landscape.
Details of the Settlement and Eligibility
The lawsuit, filed in 2022, accused Square Inc. of violating the Telephone Consumer Protection Act (TCPA) by sending mass promotional texts to users without obtaining prior express consent. The settlement resolves claims that these messages, which often promoted new features or account offers, constituted unsolicited marketing under federal law. As part of the agreement, Cash App users who received such texts during the relevant period are eligible for compensation, with individual payouts capped at $147.
Who qualifies for the payout?
- Users who received unsolicited promotional texts from Cash App between specific dates outlined in the settlement notice.
- Individuals who did not opt out of receiving marketing messages, but whose contact information was used without explicit consent.
- Participants must have had an active Cash App account during the period in question and submitted a valid claim by the deadline.
How to claim
Eligible users can submit claims through the official settlement website. The process involves verifying account details and providing contact information. Participants are encouraged to complete claims promptly, as the deadline is approaching. Once approved, payments will be issued via direct deposit to their bank accounts or added directly to their Cash App balance, depending on user preference.
Payment Distribution and Timeline
Settlement funds will be distributed on a pro-rata basis, based on the number of valid claims submitted. According to court documents, the total payout pool of $12.5 million is divided among claimants, with individual amounts varying depending on the total number of claimants and the validity of claims. The distribution process is expected to commence within the next few weeks, with most payments issued within 60 days of claim approval.
| Number of Claims | Approximate Payment per Claim |
|---|---|
| 1,000 claims | $12.50 |
| 5,000 claims | $2.50 |
| 10,000 claims | $1.25 |
Background of the Lawsuit and Settlement
The case, brought by a group of Cash App users represented by legal counsel, alleged that the company engaged in aggressive marketing tactics that violated federal law. The core issue was the use of automated text messaging systems to promote new features, account upgrades, and other financial products without obtaining explicit consent from recipients. These practices raised concerns over consumer privacy rights and compliance with the Telephone Consumer Protection Act.
In response, Square Inc. maintained that its marketing practices were compliant with applicable laws and that the settlement was reached to avoid prolonged litigation. The settlement does not constitute an admission of wrongdoing but ensures that affected users can receive compensation if they qualify.
Implications for Cash App Users and the Fintech Industry
This settlement highlights the increasing regulatory scrutiny faced by digital financial platforms regarding marketing and user privacy practices. As fintech companies expand their reach, compliance with federal laws like the TCPA becomes more critical. For consumers, it underscores the importance of understanding and managing their communication preferences in digital financial services.
Cash App users are advised to review their account communication settings and consent options within the app to better control marketing messages moving forward. Additionally, staying informed about ongoing legal developments can help users protect their rights and ensure transparency from service providers.
Resources for Consumers
- Federal Trade Commission: Telemarketing and Robocalls
- Telephone Consumer Protection Act (TCPA) on Wikipedia
- Cash App Legal Settlements
Frequently Asked Questions
What is the recent settlement involving Cash App users?
The recent settlement involves Cash App users who are eligible to receive checks up to $147 as part of a $12.5 million texting settlement.
How can eligible Cash App users receive their settlement checks?
Eligible users will be notified and can receive their settlement checks through the method specified in the settlement, typically via mail or direct deposit.
What is the purpose of the texting settlement involving Cash App?
The settlement addresses concerns regarding unauthorized or excessive texting to Cash App users, ensuring consumer protections and compensation for affected users.
Who qualifies to receive a check from the settlement?
Cash App users who received text messages from the platform during the specified period and meet other criteria outlined in the settlement are eligible for payment.
What is the deadline to claim the settlement check?
Interested users should check the official settlement website for deadlines and instructions to claim their check before the cutoff date.
