Eligible Cash App users are set to receive up to 147 checks following a recent $12.5 million settlement related to a widespread texting controversy. The settlement stems from allegations that Square Inc., the company behind Cash App, engaged in deceptive marketing practices by sending unsolicited text messages to users without proper consent. As a result, thousands of customers who received such messages may now be entitled to financial compensation, with individual payouts potentially reaching hundreds of dollars depending on the number of qualifying messages received. The settlement, approved by a federal court earlier this month, aims to resolve claims that Cash App violated various telemarketing and consumer protection laws, prompting the company to establish a comprehensive claims process for affected users.

Background of the Settlement and Allegations

The controversy dates back to allegations that Square Inc. employed aggressive and sometimes misleading tactics to promote its financial services through text messaging campaigns. According to court documents, Cash App allegedly sent numerous promotional texts to users who had not explicitly opted in, breaching federal regulations such as the Telephone Consumer Protection Act (TCPA). The lawsuit, filed in 2022, argued that these practices caused unwarranted intrusion and violated consumers’ privacy rights.

Square Inc. maintained that its messaging efforts were compliant with relevant laws but agreed to settle the claims to avoid protracted litigation. The $12.5 million settlement was approved by a U.S. District Court, paving the way for affected users to claim compensation. The settlement also includes provisions for enhanced consumer protections and clearer communication policies moving forward.

Who Qualifies for the Settlement

To be eligible, Cash App users must meet certain criteria, primarily concerning the receipt of unsolicited text messages from the platform. Specifically, qualifying claimants are those who:

• Received one or more promotional or marketing texts from Cash App between March 2020 and February 2023.
• Did not opt-in explicitly to receive such messages.
• Are residents of the United States.

Users who meet these points and submit a valid claim form will be eligible for a payout based on the number of qualifying messages they received. The settlement aims to compensate for the invasion of privacy and potential inconvenience caused by the unsolicited communications.

How Much Can Users Expect to Receive?

The settlement offers a tiered payout structure, with each recipient potentially claiming up to 147 checks depending on the number of unsolicited texts received. The specific amount per check varies based on the total number of claims filed and the severity of the allegations against individual users. Typically, payouts are estimated to range from $25 to $400 per claimant, with some users potentially receiving multiple checks if they received numerous messages.

Participants can choose to receive their settlement funds via check or electronic transfer, with the latter potentially processing faster. The settlement fund is designed to distribute funds fairly, prioritizing users who received higher volumes of unsolicited messages.

How to File a Claim and Key Deadlines

Eligible users must submit a claim form by the deadline, currently set for June 30, 2024. Claims can be filed online through the official settlement website, which provides detailed instructions and FAQs. To ensure timely processing, claimants should gather relevant information such as:

• Phone numbers associated with their Cash App account.
• Dates and approximate number of unsolicited texts received.
• Any documentation or screenshots of the messages, if available.

Claimants are advised to carefully review all instructions and ensure that their contact information is accurate to facilitate payout delivery.

Implications for Cash App and Consumer Privacy

The settlement highlights ongoing concerns about data privacy and marketing practices within the digital payments industry. While Cash App has pledged to improve its messaging policies, the case underscores the importance of consumer consent in digital marketing. Privacy advocates argue that unsolicited texts can erode trust and violate user rights, prompting calls for stricter regulation and transparency in mobile communications.

For Cash App, the settlement represents a significant financial and reputational consideration, emphasizing the need for robust compliance measures to prevent similar issues in the future. The company has committed to implementing clearer opt-in procedures and improving user control over messaging preferences, aligning with industry best practices.

Additional Resources and Updates

Frequently Asked Questions

Who is eligible to receive checks from the Cash App texting settlement?

Eligible Cash App users who were affected by the texting practices and meet the specified criteria are entitled to receive up to 147 checks as part of the $12.5 million settlement.

How many checks can eligible users expect to receive?

Eligible users could receive up to 147 individual checks, depending on their claim details and the settlement distribution process.

When will the settlement payments be distributed to eligible users?

The distribution timeline has been announced, and eligible Cash App users can expect to receive their settlement checks starting from the specified date, with ongoing payments as claims are processed.

What is the reason for the Texting Settlement involving Cash App?

The settlement addresses concerns over improper or unsolicited texting practices by Cash App, which affected many users and led to this compensation initiative.

How can users claim their settlement checks?

Eligible users need to submit a claim form through the designated settlement website. Once approved, their checks will be mailed or processed according to the settlement instructions.