Users of popular cash app can still claim $2,500 for a limited time as part of major settlement
People have until August 30 to submit their claim
Featured Image Credit: Bloomberg / Contributor / Getty
One of the most popular cash apps is currently involved in a major legal battle, opening up the possibility for users to receive up to $2,500 in compensation if they meet the eligible criteria.
While plenty of people welcome participation in class action lawsuits due to the potentially significant financial compensation that they can receive as a consequence, but it often means that a company has broken the law or endangered the safety of its customers.
Some of the biggest companies including Apple and Epic Games have recently been subject to class action lawsuits where affected individuals have been able to claim compensation, and one of the most used cash apps could soon receive the same fate amid a major legal battle.
As reported by ClassAction, the Consumer Financial Protection Bureau (CFPB) opened up a significant lawsuit against the operator of popular cash app Zelle and three associated banks amid claims that they allowed fraud to run rampant on the platform.
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Early Warning Services (EWS), the company officially behind Zelle, alongside investors Bank of America, JPMorgan Chase, and Wells Fargo are allegedly to blame for losses totalling more than $870,000,000 in fraud-related cases since Zelle's launch in 2017, with allegations that the aforementioned parties didn't do enough to stop fraudsters from exploiting the app.
Many potential claimants were expecting a class action lawsuit to come from the CFPB's accusations, opening them up to significant compensation, but the government bureau officially dropped all charges amid the Trump administration's attempts to dismantle the agency in March.
However, as reported by The Verge, the case has now been picked up again by New York Attorney General Letitia James, who alleges that Zelle was rushed onto the market causing the platform to be "an obvious conduit for fraudulent activity."
As the New York lawsuit against EWS and the associated banks is still ongoing without a verdict, there is no way for anyone to file a claim for any class action suit against Zelle right now.
It will likely still be quite a while before any resolution is reached, especially following the breakdown of the CFPB's initial case, although if a settlement is reached then any affected individuals eligible for compensation will likely receive a check in the mail, or be able to apply for a share of the money.
Due to the case being led by the New York Attorney General, however, it could be that compensation will only be given to residents of the state that have been affected by fraud on Zelle, with Letitia James outlining: "I look forward to getting justice for the New Yorkers who suffered because of Zelle's security failures."
Fellow payment platform Cash App was also subject to a class action lawsuit settlement following claims that it failed to protect user data, and was forced by the CFPB to pay $15 million to eligible users.
This allowed eligible individuals to receive checks of up to $2,500 for out-of-pocket costs, with the deadline for claims ending on November 18, 2024. It's unclear whether, if a settlement was reached, EWS would have to pay a similar amount to affected parties, but it provides a rough idea of what you could be given if the case is successful.