Cash App could owe you more than $2,500 - here's how you can claim as part of settlement

Cash App customers may be able to claim thousands of dollars as part of a class-action lawsuit. 

The mobile payments app, and its parent company Block, have reached a $15 million proposed settlement over the company's response to data and security breaches.

Eligible customers who have used the app in the last six years may be able to claim more than $2,500 each.

Users who had their account accessed without their authorization or who had fraudulent withdrawals are able to file claims, according to the settlement website. 

Similar to Zelle and Venmo, Cash App is a mobile payment service which allows customers to send and receive money, make payments at merchants, and invest in stocks.

The settlement stems from lawsuits filed by users which allege Cash App was negligent and broke its obligations in its response to two data breaches, and failed to respond adequately to customer concerns about fraudulent account transactions.

It refers to an incident in 2022 when a former employee downloaded US user reports without permission, and an incident last year when an unauthorized user accessed account data.

According to the complaint, some users lost as much as $40,000 from their accounts and spent hours dealing with the aftermath. 

Cash App and Block deny any wrongdoing. 

HOW TO CLAIM 

According to the website, the settlement applies to people who suffered fraudulent withdrawals or had their account accessed without their permission.

They must have had or currently have an account between August 23, 2018, and August 20, 2024. 

Customers can file a claim with proper documentation before November 18. The final approval hearing for the proposed settlement will be on December 16.

It is not yet clear exactly how much customers will get in the settlement, as the amount will depend on how many people file eligible claims. 

Users can submit claims for up to $2,500 for reimbursement of out-of-pocket losses. 

Out-of-pocket losses include unrefunded overdraft fees and late fees as well as costs associated with credit monitoring or identity theft insurance, requesting a credit report, canceling a payment card or closing a bank account, The Washington Post reported.

Those affected can also claim for up to three hours of lost time at a rate of $25 per hour. 

Those who lost money through unauthorized transactions can file a claim for reimbursement, but this will require a police report. 

The Consumer Financial Protection Bureau (CFPB) warns Americans against storing money on payment apps, as it is not automatically protected by the government. 

That means there is a risk that if the company fails, the funds could be lost entirely.