Eligible Cash App users are set to receive payments of up to $147 following a recent settlement linked to a class-action lawsuit that alleged the platform engaged in deceptive texting practices. The settlement, valued at approximately $12.5 million, resolves claims that Cash App sent unsolicited or excessive text messages to users without proper consent. Thousands of account holders who received such communications since 2019 are now eligible to claim a portion of the settlement fund, which could result in payments ranging from $25 to $147, depending on individual circumstances. This development underscores increasing scrutiny of digital payment services’ communication policies and highlights the importance of consumer rights in the rapidly expanding fintech landscape.
Details of the Settlement and Eligibility Criteria
Background of the Case
The lawsuit was filed against Block, Inc., the parent company of Cash App, alleging that the company violated federal and state laws by sending unsolicited text messages to users. The plaintiffs claimed that despite privacy policies indicating that users would receive only relevant notifications, many received multiple promotional and transactional texts without prior explicit consent. The case drew attention to the broader issue of how financial technology firms manage consumer communications and the transparency of their marketing practices.
How Much Can Users Expect?
| Claimant Type | Estimated Payment Range |
|---|---|
| Users who received texts without consent | $25–$147 |
| Users who received multiple texts or marketing messages | Varies based on claim details |
| Users who did not receive any texts | Not eligible for compensation |
The exact amount each claimant will receive depends on the number of valid claims submitted and the specifics of their communication history with Cash App.
How to Claim Your Payment
Eligible users must submit a claim through the settlement administrator’s website by the deadline, which is typically set for several months following the settlement approval. The process involves verifying account details and confirming eligibility by providing relevant contact information and details about received messages. Claimants are advised to keep records of any communications from Cash App to support their claim.
Implications for Digital Payments and Consumer Protections
Regulatory and Industry Response
The settlement sheds light on ongoing concerns regarding consumer privacy and the marketing practices of fintech companies. While Cash App and similar platforms offer convenience and innovative financial solutions, regulatory bodies such as the Federal Trade Commission (FTC) have increased efforts to ensure that companies adhere to strict communication standards. The FTC’s guidelines emphasize obtaining clear consent before sending promotional messages, aiming to protect consumers from unwanted solicitations.
Legal and Consumer Advocacy Perspectives
Legal experts note that the settlement serves as a reminder for companies to review their messaging protocols and ensure compliance with applicable laws. Consumer advocates emphasize the importance of transparency and the need for users to be aware of their rights to limit or opt out of marketing communications. Consumer protection laws continue to evolve to address the unique challenges posed by digital and mobile platforms.
Next Steps for Affected Users
- Visit the official settlement website to verify eligibility.
- Complete the claim form before the specified deadline.
- Keep records of any relevant text messages received from Cash App.
- Monitor settlement updates and payment status via email or the official site.
Additional Resources
Frequently Asked Questions
Who is eligible to receive payments from the Cash App texting settlement?
Cash App users who received text messages related to the service and filed a claim are eligible to receive payments up to $147.
What is the total amount available for settlement payments?
The settlement involves a total of $12.5 million allocated for eligible Cash App users who participate in the claim process.
How much can individual users potentially receive from the settlement?
Eligible users may receive payments of up to $147, depending on the number of claims and the total claims filed.
How can I submit a claim to receive my settlement payment?
Users can submit a claim by visiting the official settlement website and following the instructions provided to verify their eligibility and file their claim.
When will I receive my settlement payment?
Payments are typically distributed after the settlement approval process is complete. Specific timelines will be communicated to eligible claimants through the official settlement notices.
