Cash App Borrow $615K Military Lending Class Action Settlement

Individuals who obtained a Cash App Borrow loan from Block through Square Financial Services Inc. or First Electronic Bank while they were a covered borrower under the Military Lending Act and the loan’s Military Annual Percentage Rate exceeded 36% as of May 28, 2025, may be eligible to receive approximately $58.95 per qualifying loan from a class action settlement.

Block Inc. agreed to pay $615,000 to settle a class action lawsuit for allegedly violating the Military Lending Act and the Georgia Payday Lending Act by issuing Cash App Borrow loans to covered borrowers at interest rates above legal limits and using certain methods to access borrower bank accounts as security for the loans. The settlement class includes 1,720 borrowers.

Who is eligible for a Cash App settlement payout?

Class members must meet the following criteria:

• They obtained a Cash App Borrow loan from First Electronic Bank or Square Financial Services through Block’s Cash App platform as of May 28, 2025.
• At the time they obtained the loan, they were a covered borrower as defined by the Military Lending Act and its regulations.
• The Military Annual Percentage Rate for their Cash App Borrow loan exceeded 36%.

How much are settlement payments?

Cash payment: Eligible class members will receive an estimated $58.95 cash payment for each qualifying Cash App Borrow loan.

No claim form required

Eligible class members do not need to submit a claim to receive a settlement payment. They can submit an address update or electronic payment selection online using the LoginID and PIN from the settlement notice they received.

The address update and electronic payment selection deadline is March 23, 2027.

Payout options

• Electronic payment
• Paper check mailed to the address on file

Settlement fund breakdown

The settlement fund of $615,000 will include:

• Settlement administration costs: $16,037
• Attorneys' fees: Up to $153,750
• Attorneys' expenses: Up to $25,000
• Service award to class representative: Up to $5,000
• Payments to eligible class members: Remaining settlement funds

Important dates

• Opt-out deadline: Jan. 25, 2027
• Final approval hearing: Mar. 23, 2027

When is the Cash App Borrow loan settlement payout date?

The settlement administrator will issue payments to eligible class members within 75 days of the final approval date.

Why is there a class action settlement?

This class action lawsuit alleged Block Inc., Square Financial Services Inc. and First Electronic Bank issued Cash App Borrow loans to covered borrowers at interest rates above the legal limits set by the Military Lending Act and the Georgia Payday Lending Act. The complaint also asserted that the method Block used to access borrower bank accounts as security for the loans was unlawful.

The defendants deny the allegations but agreed to settle to avoid the expense and risk of further litigation.

Sources

1. Settlement notice
2. Settlement agreement
3. Settlement website FAQ page