Proposed Cash App class action settlement could put up to $2,500 in your pocket

ATLANTA — Customers who have been the victims of fraud through a popular payment app could be able to claim up to $2,500 as part of a multi-million dollar proposed class action settlement.

Cash App denies any wrongdoing but has agreed to a $15 million settlement.

Anyone who believes they were the victim of fraud on their Cash App account can apply.

The lawsuit alleges Cash App put customer money at risk by “failure to exercise reasonable care in securing and safeguarding consumer information in connection with a massive December 2021 data breach.”

“I’m not surprised. And I think it’s obviously a good thing that they’ve been held accountable,” said Lori Silverman, who runs the Clark Howard Consumer Action Center.

For years, they’ve received calls of fraud with payment apps.

The settlement agreement says you’re eligible for payment if “your personal information, Cash App account, or Cash App Investing account was accessed or obtained without your authorization or if you had unauthorized or fraudulent withdrawals or transfers.”

Channel 2 Action News has reported on a series of problems like that with Cash App.

In 2023, Cash App deleted $1,200 from Napoleon Fielder’s Cash App wallet.

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“It’s like to me, they want me to just get frustrated and give up and they keep my money but I ain’t gonna do that,” Fielder said.

Channel 2 consumer investigator Justin Gray also checked the Consumer Financial Protection Bureau database where there are more than 4,000 complaints about Cash App.

On complaint filed in June said, “Cash App continues to allow unauthorized charges to my account. I keep my cash app card empty because of the incessant withdrawals that keep arising.”

Cash App admits no wrongdoing and denies the claims alleged in the lawsuit.

But any cash app customer who experienced fraud with their accounts between August 23, 2018, and August 22, 2024, is eligible to submit a claim.

Silverman suggests anyone using payment apps set up a separate bank account just for those transactions.

“You don’t have to give them a lot of access. I mean, that’s the whole point of setting up a separate account, is they only have access to the little bit of money that you’re putting into that account,” Silverman said.

The final approval hearing over the settlement is in December.

If you want to submit a claim for the Cash App lawsuit, you have until Nov. 18.

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