Cash App Borrow $615K Military Lending Act Settlement

Military Lending · Pending — Automatic Payment

Current Status

There is no claim form; class members are paid automatically if the settlement receives final approval. Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California granted preliminary approval on September 28, 2026. Notice goes out by email and postcard by October 26, 2026, the opt-out deadline is January 25, 2027, and the final approval hearing is set for March 23, 2027. No payment date had been announced as of October 1, 2026.

What Changed Recently?

On September 28, 2026, the court preliminarily approved the settlement, conditionally certified the settlement class, approved the email, postcard and long-form notices, and appointed Simpluris, Inc. as settlement administrator. The court had held a hearing on July 14, 2026, and asked the parties for supplemental briefing explaining the basis for the settlement before ruling.

The lawsuit was filed in Alameda County Superior Court against Block, Inc., which operates Cash App, and the two banks that made Cash App Borrow loans, Square Financial Services and First Electronic Bank. The defendants moved it to federal court on July 3, 2025. The complaint alleged violations of the Military Lending Act and the Georgia Payday Loan Act.

According to the parties' supplemental brief, two technology errors between September 19, 2022 and June 12, 2023 meant that borrowers' covered-borrower status under the Military Lending Act was not always confirmed before a loan was paid out, so some covered borrowers received loans whose Military Annual Percentage Rate exceeded 36%. Block fixed the errors by June 12, 2023. The defendants deny wrongdoing and maintain that they had procedures reasonably designed to comply with the law, and the settlement is not an admission of liability.

Who Qualifies?

The settlement class is everyone who, as of May 28, 2025, took out a Cash App Borrow loan from First Electronic Bank or Square Financial Services through Cash App, was a covered borrower under the Military Lending Act when the loan was made, and had a loan with a Military Annual Percentage Rate above 36%.

Covered borrowers under the Military Lending Act are active-duty servicemembers and their covered dependents. The court counted about 1,720 class members, whose loans averaged $64.12. Georgia residents are not part of the class, and no Georgia Payday Loan Act claims are released.

How Much Can You Get?

Block will pay $615,000 into a common fund. Class counsel will ask for up to $153,750 in attorneys' fees and up to $25,000 in costs, administration is estimated at $16,017, and the named plaintiff may receive a service award of up to $5,000, all subject to court approval.

The court estimated that about $431,250 will remain and be divided pro rata among class members, an average of about $250 per person. That figure is an estimate, and the final amount depends on the fees and awards the court approves. No money goes back to the defendants: if checks go uncashed, a second pro rata distribution is paid to class members who cashed the first one after 150 days, and any amount too small to redistribute goes to Operation Patriot Packs, a nonprofit the court has asked the parties to explain further before final approval.

What Proof or Notice ID Is Required?

None. There is no claim form and no documentation to submit. The defendants are giving the administrator class members' contact data by October 12, 2026, and payments go to the class members identified in those records.

What Is the Deadline?

There is no claim deadline because no claim is needed. The dates that matter are for class members who want out or want to object:

• October 26, 2026: email and postcard notice sent.

• December 21, 2026: class counsel files the motion for fees, costs and the service award.

• January 25, 2027: requests for exclusion must be postmarked.

• February 1, 2027: written objections due.