Eligible Cash App users are set to receive as many as 147 checks following a recent settlement related to a widespread texting controversy involving the mobile payment platform. The $12.5 million settlement resolves allegations that Square Inc. (the parent company of Cash App) improperly used text messages to promote its services without adequately informing recipients about potential charges or obtaining proper consent. As part of the agreement, affected users are expected to receive individual payments, reflecting the scale of the outreach and the number of consumers impacted. This development underscores ongoing scrutiny over digital communication practices and highlights the importance of transparency in mobile financial services.
Background of the Settlement
The legal case originated from complaints filed by consumers who alleged that Square Inc. engaged in aggressive and sometimes deceptive marketing tactics through unsolicited text messages. These messages often promoted Cash App’s features but failed to clearly disclose that recipients might incur charges or that they could opt out of future communications. The lawsuit, which gained traction in 2022, argued that such practices violated federal laws governing electronic communications, including the Telephone Consumer Protection Act (TCPA).
After months of negotiations, the parties reached a settlement agreement in early 2024, amounting to $12.5 million. The settlement aims to compensate affected consumers and implement stricter compliance measures for future outreach efforts. According to court documents, the settlement covers users who received promotional texts from Cash App between specific dates prior to the settlement announcement.
How the Payments Will Be Distributed
Number of Checks and Eligibility Criteria
- Up to 147,000 Cash App users are eligible for restitution.
- Eligibility is based on receiving unsolicited promotional texts from Cash App during the class period.
- Recipients must have been residents in the United States at the time of the communications.
- Participants are identified through Cash App’s messaging logs and subscriber lists.
Distribution Process
Eligible users will receive payments via their Cash App accounts or through direct bank transfers, depending on their preferences registered with the platform. The process is designed to be straightforward, with instructions sent to users via email or within the app itself. Cash App has committed to ensuring that payouts are processed within 60 days following the final approval of the settlement by the court.
According to settlement administrators, each recipient will receive a pro-rata share of the settlement fund, which could vary based on the number of claims filed and verified. The amount per user is estimated to range from a few dollars up to a maximum of several hundred, depending on the extent of their interactions with the platform’s messaging campaigns.
Legal and Regulatory Implications
The case underscores ongoing concerns about the use of automation and messaging in mobile marketing, especially within the financial technology sector. The TCPA and other regulations require businesses to obtain explicit consent before sending promotional texts, a standard that Cash App allegedly failed to meet in this instance. Violations can lead to significant penalties and reputational harm, prompting companies to re-evaluate their outreach strategies.
Legal experts note that this settlement sets a precedent for similar cases in the fintech industry, emphasizing the need for transparent communication practices. The Federal Trade Commission (FTC) and Federal Communications Commission (FCC) continue to monitor compliance, reinforcing the importance of consumer protections in digital marketing.
What Affected Users Should Do Next
| Action | Description |
|---|---|
| Check eligibility | Review communication from Cash App or settlement notices to confirm participation. |
| Submit claim | Follow instructions to verify your identity and claim your payment, if necessary. |
| Update contact info | Ensure your Cash App profile has current contact details for accurate payment delivery. |
| Monitor payout status | Track payment processing through Cash App notifications or official settlement portals. |
Cash App has advised users to be cautious during this period and to stay alert for official communications regarding their payout. Consumers are also encouraged to review the company’s messaging policies and privacy settings to prevent similar issues in the future.
Broader Context and Industry Impact
This settlement reflects a broader trend of increased regulatory oversight over mobile marketing tactics, especially as financial apps expand their outreach to millions of users. The Financial Crimes Enforcement Network (FinCEN) and other agencies continue to scrutinize how fintech companies communicate with consumers, balancing aggressive marketing with compliance obligations.
As digital payment platforms grow more prevalent, transparency and consumer consent are becoming central to their operational integrity. Industry leaders are now adopting more rigorous standards to prevent legal disputes and foster trust among users. The Cash App case serves as a reminder that technological innovation must be paired with responsible communication practices, ensuring users’ rights are protected while enabling effective outreach.
For more details about the TCPA and consumer rights related to electronic communications, visit Wikipedia’s page on the Telephone Consumer Protection Act. To follow updates on fintech regulation and consumer protection, Forbes provides ongoing coverage at Forbes.
Frequently Asked Questions
What is the recent settlement involving Cash App users?
The recent settlement involves a class-action lawsuit in which Cash App users are eligible to receive up to 147 checks following a $12.5 million agreement related to texting practices.
How many checks can eligible Cash App users receive?
Eligible Cash App users can receive up to 147 checks as part of the settlement.
What is the criteria for Cash App users to be eligible for the settlement?
Users must have been subjected to the texting practices addressed in the lawsuit and meet specific eligibility requirements outlined by the settlement to qualify for the checks.
How can users claim their settlement checks?
Eligible Cash App users should follow the claim process provided in the settlement notice, which typically involves registering through a designated website or contact point before the deadline.
When is the deadline to claim the checks or participate in the settlement?
The deadline to claim the checks or participate in the settlement varies; users should review the official settlement notice for specific dates and ensure they act before the deadline.
