Cash App $12.5M Settlement: Mobile payment service Cash App has agreed to pay $12.5 million to settle a class action lawsuit alleging the company sent unsolicited text messages to consumers. The settlement could provide payments of up to $147 for eligible recipients who received unwanted promotional texts between 2018 and 2023.
Background of the Lawsuit
The legal action stemmed from allegations that Cash App violated the Telephone Consumer Protection Act (TCPA), a federal law that restricts companies from sending automated marketing messages without prior consent. Plaintiffs claimed the mobile payment service sent promotional and referral text messages not only to existing users but also to individuals who had never signed up for or used Cash App.
While Cash App denied any wrongdoing, the company chose to settle the case rather than engage in prolonged litigation. This settlement follows a growing trend of companies facing legal consequences for violating consumer privacy through unsolicited digital communications.
Eligibility for Compensation
Consumers may qualify for a payment from the settlement if they meet certain criteria. Eligible recipients include U.S. residents who received unwanted text messages from Cash App or its representatives between January 1, 2018 and December 31, 2023 without providing prior consent. This applies to both current and former Cash App users, as well as individuals who never created an account but still received messages.
Potential Payment Amounts
The $12.5 million settlement fund will first cover legal fees and administrative costs before distributing remaining funds to valid claimants. Individual payment amounts will depend on the total number of approved claims, with estimates ranging between $50 and $147 per person. If fewer claims are filed, individual payments could reach the higher end of this range.
How to File a Claim
Once the settlement receives final court approval, expected in late 2025, an official claims website will be established. The claims process will require:
- Submitting contact information including the phone number that received the messages
- Providing documentation if available (such as screenshots or message logs)
- Selecting a preferred payment method (direct deposit, paper check, or digital payment)
- Filing before the deadline, which will likely be 60-90 days after the claims period opens
Claimants without physical proof may still participate by submitting a sworn statement affirming they received the messages.
Important Dates and Timeline
Following the claims deadline, the settlement administrator will need approximately 3-5 months to review submissions. Approved payments are expected to be distributed 6-9 months after the claims period closes, with most payments likely being issued in mid-to-late 2026.
Protecting Against Scams
Consumers should be aware that scammers often target class action settlements. Legitimate claims will never require payment or sensitive financial information upfront. All communications should come through official settlement channels, and claimants should only use the court-approved website once it becomes available.
Significance of the Settlement
This case highlights the importance of digital privacy rights and serves as a reminder that companies must obtain proper consent before contacting consumers. The settlement may prompt Cash App and similar services to implement stricter compliance measures regarding customer communications.
For affected consumers, this represents an opportunity to receive compensation for unwanted messages. Those who believe they may qualify should watch for official notices about the claims process and be prepared to act when the filing period opens.
Frequently Asked Questions
Q: Do I need to have been a Cash App user to qualify?
A: No, the settlement includes people who received messages without ever having an account.
Q: How much money will I receive?
A: Payments will range between $50-$147 depending on total claims filed.
Q: Can international users participate?
A: No, only U.S. residents are eligible for this settlement.
Q: What if I don’t have proof of the messages?
A: You can still file a claim by submitting a sworn statement.
Q: When will payments be sent out?
A: Payments are expected in mid-to-late 2026 after all claims are processed.
Consumers seeking updates should monitor official court filings or reputable legal news sources for the latest information about the settlement process.