South Dakota will receive $410,946.38 as the state’s share in a $45 million 46-state settlement with Block, Inc. The settlement resolves allegations that Block, Inc. misled consumers about the safety of Cash App, a peer-to-peer payment platform, and failed to protect users from fraud.
Attorney General Marty Jackley said Block, Inc. told Cash App users their money was safe – implying that the app worked like a bank, with the same protections, which wasn’t true. At the same time, Block, Inc. knew fraud on its platform was rising sharply – and instead of warning users or strengthening protections, it doubled down on its marketing.
For years, Block, Inc. actively promoted direct deposits of paychecks and government benefits into Cash App. It made a particular push to reach unbanked and underbanked consumers – people who would often rely on Cash App as their primary financial account, and who were especially vulnerable to fraud. Block, Inc. grew its user base without making sure it could support those users when problems arose.
South Dakota’s share will go to the Attorney General’s Consumer Protection Division to fund future consumer protection efforts.
As part of the multistate settlement, Block, Inc. will distribute between $75 million and $120 million to compensate South Dakotans and consumers nationwide as part of a settlement with the Consumer Financial Protection Bureau (CFPB).
Jackley said South Dakota consumers who believe they are entitled to compensation should click onto: https://www.consumerfinance.gov/enforcement/actions/block-inc/ and https://cashappcfpbsettlement.com/.
Other states that are part of the agreement are: Alabama, Alaska, Arizona, Arkansas California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin.
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