Cash App customers could be seeking thousands of dollars in class-action lawsuits.
The mobile payments app and its parent company, Block, have reached a proposed $15 million settlement over the company’s response to data and security breaches.
Eligible customers who have used the app in the past six years will be able to claim up to $2,500 each.
Users who have had access to their account without their authorization or have made fraudulent withdrawals will be able to file claims, according to the agreement. website.
Similar to Zelle and Venmo, Cash App is a mobile payment service that allows customers to send and receive money, make payments at merchants, and invest in stocks.
Cash App customers could claim thousands of dollars as part of a class action settlement
The settlement stems from lawsuits filed by users who allege that Cash App was negligent and breached its obligations in its response to two data breaches and failed to adequately address customer concerns about fraudulent account transactions.
It refers to an incident in 2022 when a former employee downloaded reports from US users without permission, and to an incident last year when an unauthorized user accessed account data.
According to the complaint, some users lost up to $40,000 from their accounts and spent hours dealing with the consequences.
Cash App and Block deny any wrongdoing.
HOW TO CLAIM
According to the website, the settlement applies to people who suffered fraudulent withdrawals or whose account access was gained without their permission.
You must have had or currently have an account between August 23, 2018 and August 20, 2024.
Customers can archive a claim with proper documentation by November 18. The final approval hearing for the proposed settlement will be on December 16.
It’s not yet clear exactly how much customers will receive in the settlement, as the amount will depend on how many people file eligible claims.
Users can submit claims for up to $2,500 for reimbursement of out-of-pocket losses.
Cash App is a mobile payment service that allows customers to send and receive money, make payments at merchants, and invest in stocks.
The Consumer Financial Protection Bureau (CFPB) is warning Americans not to store money in payment apps (pictured: CFPB Director Rohit Chopra)
Out-of-pocket losses include unreimbursed overdraft fees and late payment fees, as well as costs associated with credit monitoring or identity theft insurance, requesting a credit report, canceling a payment card or closing a bank account. The Washington Post reported.
Those affected can also claim up to three hours of lost time at a rate of $25 per hour.
Those who lost money through unauthorized transactions can file a refund claim, but this will require a police report.
The Consumer Financial Protection Bureau (CFPB) warns Americans not to store money in payment apps, as it is not automatically protected by the government.
This means that there is a risk that if the company fails, the funds could be lost entirely.