In today’s digital world, apps like Cash App have transformed the way we handle money. From sending payments to receiving funds, these apps make transactions effortless. However, with convenience comes responsibility—especially regarding user privacy and consent.
In early 2025, Cash App agreed to a $12.5 million class action settlement for sending promotional messages without user consent. Eligible users could receive up to $147, depending on the total claims submitted.
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$147 Payment for U.S. Citizens
Between 2018 and 2023, several Cash App users reported receiving unsolicited referral or promotional messages. Messages included notifications such as:
- “Invite friends and earn rewards”
- “Claim your bonus now”
These messages were sent automatically, even to users who had not opted in. This violated the Telephone Consumer Protection Act (TCPA), a U.S. law that prohibits marketing messages without consent.
After investigations and months of litigation, Cash App chose to settle for $12.5 million to avoid prolonged legal proceedings and maintain user trust. The company did not admit wrongdoing but resolved the matter amicably.
Eligibility Criteria
Eligibility is limited to U.S. residents who received unauthorized Cash App messages between 2018 and 2023.
| Eligibility Criterion | Details |
|---|---|
| Location | United States residents only |
| Timeframe | Messages received between 2018–2023 |
| Message Type | Referral or promotional messages sent without consent |
| Claim Requirement | Submit a valid claim on the official settlement website |
| Exclusion | Non-U.S. residents are not eligible |
If you received such a message, you can file a claim through the official settlement site.
Cash App’s Statement
Cash App stated that it disagrees with the allegations, but opted for a settlement to avoid extended court battles. The company emphasized that this does not admit wrongdoing but is a step to maintain user confidence and trust.
The $12.5 million will be distributed as follows:
- Payments to affected users
- Claim processing costs
- Attorney and court fees
How Much Will You Receive?
Eligible users can receive up to $147 per person, depending on the number of valid claims submitted. If fewer people claim, payments may be higher. These payments compensate users for privacy violations, reinforcing the importance of digital consent.
How to File a Claim
Filing a claim is straightforward:
- Visit the official settlement website: Cash App TCPA Settlement
- Fill in your personal details and verify the message received.
- Submit the claim before the deadline (announced by the settlement administrator).
- Choose your preferred payment method—direct deposit or check.
- You will receive confirmation once your claim is approved.
Why This Case Matters
This settlement is more than money—it sets a legal precedent highlighting the need for tech companies to respect user privacy and consent. Key takeaways include:
- User consent is mandatory: No automated marketing messages without permission.
- Data privacy builds trust: Respecting privacy strengthens brand reputation.
- Legal rights exist: The TCPA empowers users to seek justice for violations.
What Is a Class Action?
A class action lawsuit allows multiple people with similar grievances to file collectively. In the Cash App case, thousands of affected users joined to simplify the legal process. Benefits include:
- Lower legal costs for individuals
- Equal outcomes for all participants
- Faster resolution than multiple individual lawsuits
Impact on Cash App’s Reputation
While this case temporarily affected Cash App’s image, the company remains widely used. Post-settlement, Cash App has updated privacy policies and improved consent mechanisms to prevent future violations. Transparency now serves as a trust-building measure for users.
Lessons for the Fintech Industry
This case sends a strong message to fintech companies: user consent and data privacy are non-negotiable. Major implications include:
- Stricter oversight by regulators like the FTC and FCC
- Ethical marketing with opt-in messaging systems
- User empowerment, with greater awareness of digital rights
How to Protect Yourself
If you use digital payment platforms, consider these precautions:
- Only grant apps necessary permissions
- Turn off “Promotional Notifications” in settings
- Read privacy policies carefully
- Report unwanted messages to the FTC or state attorney’s office
Official FTC website for complaints: https://www.ftc.gov
Conclusion
Cash App’s $12.5 million settlement is a victory for consumer privacy and user rights. It shows that consent matters in the digital age and that companies are accountable when they violate it.
Eligible users should check their messages and file claims promptly to secure their payout. This settlement serves as a reminder that user privacy is valuable and legally protected.
FAQs
- Who qualifies for the Cash App settlement?
U.S. residents who received unsolicited promotional messages from Cash App between 2018–2023. - How much can I receive?
Payments are up to $147 per eligible user, depending on the number of claims submitted. - How do I file a claim?
Visit the official website: Cash App TCPA Settlement and submit your claim online.
