$147 Payment for Everyone – Cash App agrees to $12.5M settlement over spam texts class action claims

This news is highly significant for millions of Cash App users across the country. A class-action lawsuit filed against Cash App has recently been settled, alleging that the company sent unsolicited promotional and spam text messages. The settlement amounts to a total of $12.5 million, and eligible users could receive up to $147 per person. This case not only highlights the accountability of digital payment platforms but also underscores the importance of consumer rights in today’s mobile banking era.

What Led to the Settlement?

The settlement stems from a lawsuit alleging that Cash App sent promotional text messages to millions of users without their consent. These messages included information about new features, cash incentives, offers, and marketing-related content. Many users claimed they never authorized receiving such messages, yet they continued to receive promotional texts.

The lawsuit also alleged that these messages violated federal regulations designed to protect consumers from unwanted and spam messages. The issues raised regarding privacy and the protection of personal data made the case particularly serious. Rather than engaging in a prolonged legal battle, Cash App decided to settle the dispute, providing compensation to affected users and bringing the matter to a close.

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Who Will Receive the $147 Payment?

It’s important to understand that not every Cash App user will automatically receive this payment. The settlement includes specific criteria that users must meet to be eligible for compensation.

First, users must have received unsolicited promotional text messages from Cash App between 2019 and 2025. Additionally, the user must have been a resident of the United States during that period. Additionally, the Cash App account must be linked to the same phone number that received these messages.

Users who meet all these criteria will receive a payment of $147. This payment will either be deposited directly into their Cash App account or a check will be mailed to their address—depending on the option they selected when filing their claim.

How to Claim Your Payment?

The process for claiming the settlement is quite simple, but timely action is crucial. First, users should verify whether they received unsolicited promotional messages from Cash App within the specified timeframe.

Next, they must fill out the official claim form, providing their name, contact information, and the phone number associated with their Cash App account. When filling out the form, users must also choose their preferred payment method—direct deposit or check.

Most importantly, the claim must be submitted before the specified deadline. Delays may result in the claim being rejected. Also, be wary of any third-party services that charge a fee for filing a claim, as the official process is completely free.

Why is this Settlement So Important?

This settlement is significant in several ways. First, it demonstrates that even large tech and fintech companies are not above consumer rights. If a company sends marketing messages without permission, it can face legal consequences.

Second, this case sends a message to companies that they must obtain clear and explicit consent before sending promotional communications. Transparency and user consent on digital platforms are no longer just formalities, but legal obligations.

Third, this case could set a precedent for other similar cases in the future, leading to stricter adherence to regulations in the digital payment and mobile app industry.

Lessons for Users and Companies

For users, this settlement serves as a reminder to regularly check the settings and privacy options of their mobile apps. If an app is sending unwanted messages, they should report them instead of ignoring them. This not only protects personal privacy but also helps prevent similar incidents in the future.

For companies, this is a clear message that compliance with regulations is crucial for maintaining consumer trust. Sending messages without consent not only annoys customers but can also lead to significant legal and financial consequences.

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Conclusion

This $12.5 million settlement between Cash App and its users highlights the importance of consumer rights in the digital age. The $147 payment to eligible users demonstrates that vigilance and legal protection can directly benefit ordinary people.

This case reminds users to be mindful of their digital security, while teaching companies that proceeding without transparency and consent can be risky. If you are eligible for this settlement, be sure to file your claim in a timely manner to receive the full benefit of this legal agreement.

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