Cash App Settlement: $615K Deal for Military Borrowers Ends Lawsuit Over Cash App Borrow Loans

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A $615,000 class action settlement ends a Cash App lawsuit that alleged Block, Inc., Square Financial Services, Inc., and First Electronic Bank issued Cash App Borrow loans to certain borrowers with interest rates in excess of what’s permissible under the federal Military Lending Act.

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The Cash App Borrow class action settlement received preliminary approval from the court on September 28, 2026.

Eligible for the settlement are individuals who, as of May 28, 2025, obtained a Cash App Borrow loan from First Electronic Bank or Square Financial Services through Block’s Cash App platform, were covered borrowers as defined under the Military Lending Act and its implementing regulations at the time they obtained a Cash App Borrow loan, and the Military Annual Percentage Rate applicable to the Cash App Borrow loan exceeded 36 percent.

Under the Military Lending Act, a “covered borrower” is a consumer who, at the time they became obligated on a credit transaction or established a credit account, was an active-duty member of the Armed Forces, an active Guard and Reserve member, or a dependent of an active-duty servicemember or active Guard and Reserve member. The law sets a 36 percent military annual percentage rate cap on loans issued to covered borrowers.

Is the Cash App settlement notice legit?

Yes, the Cash App Borrow settlement notice is legitimate, and class members are eligible to receive a cash payment.

The court-authorized Block Cash App Borrow class action settlement website can be found at BlockMLASettlement.com.

Court documents state that 1,720 people are included in the settlement class.

Related Reading: Unauthorized Purchase Lawsuits – Cash App, Venmo, Zelle, PayPal

How much is the Cash App settlement payout?

Class members do not need to file a claim form to receive a pro rata (proportional) cash payment of approximately $58.95 for each eligible Cash App Borrow loan with a Military Annual Percentage Rate that exceeded 36 percent as of May 28, 2025.

The final amount of each class member’s cash payout may change, depending on how many class members participate in the settlement, and a second cash distribution may occur depending on how many initial payments go uncashed.

Class members who wish to update their contact information or select a digital payment method can visit this page and enter the login ID and PIN found on their copy of the settlement notice.

The court will determine whether to grant final approval to the Cash App Borrow class action settlement following a hearing on March 23, 2027. Compensation will begin to be made available to class members only after final approval has been granted and any appeals have been resolved.

Is this the same as the other Cash App class action settlement?

The Cash App Borrow settlement detailed on this page is distinct from other class action settlements involving Cash App or allegations brought by the Consumer Financial Protection Bureau or state attorneys general.

The Cash App class action lawsuit alleged that Block, Square Financial Services, and First Electronic Bank issued Cash App Borrow loans to certain borrowers with interest rates that exceeded permissible limits under the federal Military Lending Act and the Georgia Payday Lending Act.

Last year, Block, Inc. agreed to a $12.5 million class action settlement to resolve a Cash App lawsuit that alleged the company violated Washington law by incentivizing users to send unsolicited text messages to state residents through the platform’s “Invite Friends” referral program.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.