In today’s digitalised world, where the internet and smartphones have made life easier, there is also another aspect that is creating trouble for the customers. The recent case is related to the Cash App in the United States, which has brought this discussion into the light.
At the center of the controversy were the spam text messages that had been sent to the client without their permission. As a result, the organisation has been enforced to settle the $12.5 million.
$147 Payment for Everyone
Cash App, which is the well-known US mobile finance application, has been accused of repeatedly sending referral and promotional messages between 2018 and 2023 to thousands of users without their permission. The shocking thing is that there were many people who had not even expressed their desire or downloaded this application to be part of any of the referral programs.
It was the case of violating the US Telephone Consumer Protection Act, under which sending any commercial message to customers without their consent is a legal offense. As the number of complaints has increased and it has been debated in the media, the matter has been extended to the court and has been listed as a class action lawsuit.
What did Cash App do?
The Cash App has elected to settle the $12.5 million apart from going to court and arguing on the issue. The organisation has not admitted in court that they made any of the mistakes, but they have made it clear that they do not want to take this legal dispute further. It does not mean that the administration has accepted the crime, but it means that the organisation avoids being in any controversy, as it can affect the goodwill of the business.
Who will benefit from this settlement?
This settlement is mainly related to the Cash App that applies to the people who are living in the United States and who are the victims of the text message that has been sent by the agents of the Cash App between 2018 and 2023. There are three main eligibility criteria that have to be fulfilled.
- The candidate to be qualified has to obtain the promotional text messages from the Cash App between 2018 and 2023.
- The candidate should not have accepted any of the referral links provided by the organisation, nor have they signed up for that service by themselves.
- It is important for the candidate to fill out the claim form to be part of the class action lawsuit.
How much will you receive?
People who are qualified under this class action settlement will receive the maximum payout of $147 on each claim; however, this amount is yet to be confirmed. The amount will be finalised based on how many people have filled out the claim form. If the total number of claims is higher than the amount, the amount you will receive will be reduced.
How can I receive money?
If you are currently living in the United States and you have received any of the unwanted text messages from Cash App, then you can fill out the claim form through the online portal. The process to file the claim is fully digital, so there is no requirement for you to visit the court.
- To receive the compensation amount, you need to fill out the claim form.
- It is important for you to submit the form before the deadline passes.
- Once the form has been approved by the authorities, the amount will be dispersed automatically to your bank account or through a paper check.
What lesson could you draw from this case?
The lawsuit that has been filed against the Cash App teaches a big lesson regarding how important user consent and data privacy are in today’s digitalised world. No company or application has the right to send a referral or promotional message to you without your permission.
If it happens, then you have the right to take legal action against the organisation by joining the class action. It makes it clear that you should be aware of the digital rights while you are using any technology. Whenever you are giving permission to the application, it is important for you to check how you are using the contact and data.
Impact of the lawsuit on the image of Cash App
Cash App is one of the famous fintech applications, but the litigation imposed on the organisation has affected the image of the business. Although the organisation did not admit its fault, the $12.5 million settlement proclaims that the organisation does not want to escalate this argument. In order to avoid such cases in the future, it is significant that the organisation gives importance to user consent and transparency.
Conclusion
The $12.5 million settlement shows that the organisation should respect the user consent. The emails, text messages, or any of the digital communication that takes place without the consent of the user is strictly against the law and can be reimbursed. This case provides a lesson that user should be aware of their privacy and digital rights. If you are living in the United States and you are qualified, then you can receive $147; you just have to claim it within the given timeframe.
FAQs
Why Cash App Agrees to $12.5M Settlement?
A class action lawsuit has been filed against the Cash App for sending unauthorized text messages to user without their permission between 2018 and 2023. To settle the litigation, the organization agreed to pay $12.5M settlement.
How many qualified users can receive?
If you are qualified, you can receive $147 per claimant based on the total number of claims that are submitted.
Who is qualified to receive the payment?
U.S residents who have received unwanted promotional messages from the Cash App without their consent.
I’m Daniel, a Finance Expert and Economist who loves breaking down complex financial ideas into simple, practical insights. Over the years, I’ve worked with investment strategies, market analysis, and economic trends to help people make smarter money decisions. My goal is to share knowledge that empowers readers to build financial growth and long-term stability.