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• Government Actions:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  UNITED STATES OF AMERICA CONSUMER FINANCIAL PROTECTION BUREAU V BLOCK INC.
  On January 16, 2025, Block agreed to settle allegations (case 2025-CFPB-0001) brought against the company by the Consumer Financial Protection Bureau (CFPB).
  
  
  
  The consent agreement is the result of CFPB’s findings that Block, operator of Cash App was in violation the Electronic Fund Transfer Act (EFTA), that requires peer-to-peer platforms to investigate and resolve disputes of unauthorized transactions. The CFPB describes the security protocols Block employed as being weak. The CFPB alleges that Block conducted inferior investigations, would direct victims of fraud to reach out to their bank to attempt to reverse the transactions, which Block would then deny. It was also found that Block led consumers to believe via their Terms of Service that disputes are the responsibility of their linked bank. 
  
  
  
  Without admitting or denying the allegations, Block will be required to pay up to $120 million in refunds and other redress to consumers, to rectify their customer service, by fully investigating unauthorized transactions, to provide refunds in a timely manner when required and to set up a 24-hour live person customer service. Block will also pay a penalty of $55 million to the CFPB’s relief fund.
  
  

   

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• Government Actions:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  SETTLEMENT AGREEMENT AND CONSENT ORDER BLOCK, INC.
  On January 15, 2025, Block agreed to settle allegations brought against the company by the Department of Financial Protection & Innovation (DFPI) and 47 state financial regulatory agencies.
  
  
  
  The consent agreement is the result of State Money Transmission Regulators conducting a multi-state investigation of Block Inc. for actions taken between January 1, 2021, through March 31, 2023. The alleged allegations are that Block, operator of Cash App, was in violation of the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws that are in place to safeguard the financial system from illicit use. 
  
  
  
  Without admitting or denying the allegations, Block will pay $79,075,000, to the participating state agencies along with $925,000 in administrative costs. Block has also agreed to hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML programs and will submit a report within 9 months to the participating states. 
  
  

   

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