Cash App users may receive a refund from the mobile banking platform after a government group ordered the company to pay out $175 million for its weak security procedures.
The Consumer Financial Protection Bureau, which oversees consumer financial protections, ordered Cash App’s parent company Block to refund users $120 million. The order also indicates it must pay $55 million into a government fun that helps those “harmed by companies that break federal consumer financial protection laws.”
The bureau claims Cash App “tricked” customers with its Terms of Service to avoid investigative obligations. In Cash App’s Terms of Service, users are led to believe that disputes are the responsibility of their linked banks.
At this moment it is unclear how many users will be refunded, who could qualify, how much money will be paid to each or when the payment will be issued. However, users were told they do not need to take any action at this time to receive a refund.
Here’s what Cash App users in Arizona need to know to ensure they are compensated for issues with the mobile banking platform.
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How can Cash App users redeem their claims?
According to the Consumer Financial Protection Bureau, consumers will not need to take action to get their payout, as the agency will identify and ensure payment to all impacted parties.
Users that qualify include:
- Consumers who did not receive refunds to which they were entitled for fraudulent transactions.
- Consumers whose accounts had unauthorized transfers or transactions not adequately investigated by Cash App and Block.
- Consumers who had accounts locked as a result.
- Consumers who did not receive provisional credits during delayed investigations.
Court documents also outlined at least two preliminary options for Cash App to deliver funds:
- Consumers who have transacted on a Cash App account within the last six months as of the date of the Redress Plan may receive payment in the form of a credit to their Cash App account.
- Consumers who have not transacted on a Cash App account within the last six months as of the date of the Redress Plan or on the date payments are made will receive non-credit payments separate from the app.
USA TODAY Network reporter Susan Tompor contributed to this article.
