In a significant development, Cash App and Chime have reached a settlement in a class-action lawsuit alleging that Cash App users were charged unauthorized fees for transactions made with their Chime accounts.
The lawsuit, filed in 2021, claimed that Cash App had a policy of automatically charging a 3% fee whenever users made a payment or withdrawal from their Chime accounts. This fee was not disclosed to users, and it was not authorized by Chime.
The settlement, which was approved by a federal court in California, will provide refunds to Cash App users who were charged unauthorized fees. It will also require Cash App to change its policies and procedures to ensure that users are clearly informed of any fees that may be charged.
Cash App/Chime Settlement
The settlement resolves a class-action lawsuit alleging unauthorized fees.
- Refunds for users
- Policy changes
- Clear fee disclosures
The settlement will provide refunds to affected users and require Cash App to make changes to its policies and procedures to ensure that users are clearly informed of any fees that may be charged.
Refunds for users
The settlement provides for refunds to Cash App users who were charged unauthorized fees for transactions made with their Chime accounts.
- Refund eligibility:
To be eligible for a refund, users must have been charged a 3% fee for a transaction made with their Chime account between January 1, 2021, and June 30, 2022.
- Refund amount:
The amount of the refund will be based on the amount of the unauthorized fees that were charged. The average refund amount is expected to be around $10, but some users may receive more or less depending on the number of unauthorized fees they were charged.
- Refund process:
Users who are eligible for a refund will be notified by email or mail. They will then need to submit a claim form in order to receive their refund. The claims process is expected to begin in early 2023.
- Time limit for filing a claim:
Users who are eligible for a refund have until one year from the date they receive the notification to file a claim.
The settlement administrator will oversee the refund process and distribute the refunds to eligible users.
Policy changes
The settlement requires Cash App to make changes to its policies and procedures to ensure that users are clearly informed of any fees that may be charged.
- Fee disclosure:
Cash App must clearly disclose any fees that may be charged for using its service, including fees for transactions made with Chime accounts.
- User consent:
Cash App must obtain the user's consent before charging any fees. This means that users must be given the opportunity to review and accept the terms and conditions of the service, including any fees that may be charged.
- No unauthorized fees:
Cash App is prohibited from charging any unauthorized fees. This includes fees for transactions made with Chime accounts that are not clearly disclosed and consented to by the user.
- Monitoring and enforcement:
Cash App is required to implement a monitoring and enforcement program to ensure that its policies and procedures are being followed. This includes regularly reviewing transactions for unauthorized fees and taking appropriate action to prevent such fees from being charged in the future.
These policy changes are designed to protect users from being charged unauthorized fees and to ensure that they are fully informed of any fees that may be charged before they use Cash App's services.
Clear fee disclosures
The settlement requires Cash App to provide clear and conspicuous disclosures of any fees that may be charged for using its service, including fees for transactions made with Chime accounts.
- Fee schedule:
Cash App must publish a fee schedule on its website and in its mobile app. The fee schedule must list all fees that may be charged, including fees for transactions made with Chime accounts.
- Fee notifications:
Cash App must provide users with clear and conspicuous notifications of any fees that may be charged before they use the service. This includes providing a notification before a user makes a transaction with a Chime account that may be subject to a fee.
- User consent:
Cash App must obtain the user's consent before charging any fees. This means that users must be given the opportunity to review and accept the terms and conditions of the service, including any fees that may be charged.
- No hidden fees:
Cash App is prohibited from charging any hidden fees. All fees must be clearly disclosed to users before they use the service.
These clear fee disclosures are designed to ensure that users are fully informed of any fees that may be charged before they use Cash App's services. This will help to prevent users from being surprised by unexpected fees.
FAQ
This section provides answers to frequently asked questions about the Cash App/Chime settlement.
Question 1: Who is eligible for a refund?
Answer: You are eligible for a refund if you were charged a 3% fee for a transaction made with your Chime account between January 1, 2021, and June 30, 2022.
Question 2: How much will I receive as a refund?
Answer: The amount of the refund will be based on the amount of the unauthorized fees that were charged. The average refund amount is expected to be around $10, but some users may receive more or less depending on the number of unauthorized fees they were charged.
Question 3: How do I file a claim for a refund?
Answer: You will need to wait for the claims process to begin in early 2023. Once the claims process begins, you will be notified by email or mail with instructions on how to file a claim.
Question 4: What policy changes has Cash App made as part of the settlement?
Answer: Cash App has agreed to make changes to its policies and procedures to ensure that users are clearly informed of any fees that may be charged. This includes providing clear fee disclosures, obtaining user consent before charging any fees, and prohibiting the charging of unauthorized fees.
Question 5: How can I avoid being charged unauthorized fees in the future?
Answer: You can avoid being charged unauthorized fees by carefully reviewing the terms and conditions of any service before you use it. You should also be aware of any fees that may be charged for using your Chime account with Cash App or other services.
Question 6: Where can I find more information about the settlement?
Answer: You can find more information about the settlement on the website of the settlement administrator.
The settlement administrator will oversee the refund process and distribute the refunds to eligible users.
Tips
Here are some tips to help you get the most out of the Cash App/Chime settlement:
Tip 1: Check your eligibility:
Review the settlement terms to see if you are eligible for a refund. You may be eligible if you were charged a 3% fee for a transaction made with your Chime account between January 1, 2021, and June 30, 2022.
Tip 2: Gather your records:
If you believe you are eligible for a refund, gather any records or documentation that you have related to the unauthorized fees that were charged. This may include bank statements, transaction receipts, or screenshots of your Cash App account.
Tip 3: File your claim promptly:
Once the claims process begins in early 2023, file your claim as soon as possible. You will have one year from the date you receive the notification to file a claim.
Tip 4: Be aware of potential scams:
Be wary of any unsolicited emails, phone calls, or letters that you receive regarding the settlement. The settlement administrator will never ask you to pay a fee to file a claim or to receive your refund.
By following these tips, you can help to ensure that you receive the refund that you are entitled to under the settlement.
Conclusion
The Cash App/Chime settlement is a significant development for users who were charged unauthorized fees for transactions made with their Chime accounts. The settlement provides for refunds to affected users, policy changes to prevent future unauthorized fees, and clear fee disclosures to ensure that users are fully informed of any fees that may be charged.
The settlement is a reminder that it is important to carefully review the terms and conditions of any service before you use it. You should also be aware of any fees that may be charged for using your Chime account with Cash App or other services.
If you believe that you were charged unauthorized fees by Cash App, you should file a claim to receive a refund. The claims process is expected to begin in early 2023. You can find more information about the settlement and the claims process on the website of the settlement administrator.
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