$147 Payment approved for All: Cash App, a popular peer-to-peer money transfer app used by millions across the U.S., has agreed to a $12.5 million legal settlement after being accused of sending promotional texts without permission.
The case was filed in Washington State and focused on messages sent through the “Invite Friends” referral feature. Some people received these messages even though they never agreed to them, which raised legal issues under the state’s consumer protection laws. While Cash App’s parent company, Block, Inc., denied breaking any laws, they agreed to settle to avoid a long legal fight.
Why Cash App Was Taken to Court
The lawsuit centred around Cash App’s referral program that let users send text invitations to friends. Many users used this feature to invite others, but the problem started when people who never signed up or gave permission began receiving these messages.
The issue was not with the users, but with how the company allowed and managed the messages. Washington State has strict rules that say businesses must get clear permission before sending promotional messages. Since some texts went out without consent, the company faced legal trouble under:
- The Washington Commercial Electronic Mail Act, which controls digital advertising and requires consent.
- The Washington Consumer Protection Act, which protects people from unfair business practices.
Who Can Get the Settlement Money
Not everyone can claim money from this settlement. It only applies to a specific group of people who meet all the following conditions:
- Received one or more Cash App referral or promo texts between November 14, 2019, and August 7, 2025
- Lived in Washington State during that time
- Did not give permission to receive such texts
- Submitted a valid claim by October 27, 2025
If you didn’t meet all these points, you won’t qualify. People from other states or those who gave consent to receive texts were excluded.
Payout Amount and Timeline
The total fund set aside is $12.5 million. That money will be used for:
- Payments to eligible claimants
- Legal fees
- Administration and processing costs
After all deductions, the remaining money will be shared among the approved claimants. Here’s what you can expect:
- Estimated payment per person: $88 to $147
- Payout method: Direct deposit, mailed cheque, or electronic transfer
- Payment timeline: Early 2026
If fewer people claimed the money than expected, individual payments will be on the higher end of the range.
Important Dates to Remember
| Settlement Event | Date |
|---|---|
| Start of eligible message period | November 14, 2019 |
| End of eligible message period | August 7, 2025 |
| Claim submission deadline | October 27, 2025 |
| Final court approval | December 2, 2025 |
| Payments expected | 30th Jan 2026 |
How the Claims Process Worked
To get paid, people had to file a claim online or by mail. They needed to:
- Confirm the phone number that received the texts
- Prove they lived in Washington at the time
- Declare they didn’t agree to receive marketing or referral texts
The claims were carefully reviewed. Invalid, duplicate, or incomplete entries were removed. Only those who passed this review are now waiting for payment.
What Happens Next
Since the final approval was given in December 2025, the process has now moved into the payment distribution stage. No further action is needed from those who already filed a valid claim. Payments will arrive in the chosen method direct deposit, cheque, or digital transfer — in early 2026.
Why This Settlement Is Important
This case is a big reminder that digital companies must respect user consent. Even simple referral messages can become a legal issue if they’re sent without permission. The settlement:
- Helps affected Washington residents get compensated
- Encourages businesses to follow better digital marketing practices
- Highlights how strong consumer protection laws can hold companies accountable
In a digital world full of marketing, this case reinforces that your consent matters. Whether it’s through text, email, or app notifications, businesses need to respect people’s choices and privacy.
FAQ
Q1: What is the Cash App $12.5 million settlement about?
A: The settlement is about unwanted promotional texts sent through Cash App’s referral feature without user consent, violating Washington State laws.
Q2: Who is eligible for the Cash App settlement?
A: You must have lived in Washington State, received referral texts between Nov 2019 and Aug 2025, not given consent, and submitted a valid claim before the deadline.
Q3: How much money will eligible people receive?
A: Payments are expected to range between $88 and $147, depending on the total number of valid claims.
Q4: When will the Cash App settlement payments be sent?
A: Payments are expected to go out in early 2026, either by cheque, direct deposit, or digital payment.
Q5: Do I need to do anything else to receive my payment?
A: No. If your claim was approved, you don’t need to take any further steps. Just wait for your chosen payment method in early 2026.