Cash App Borrow $615K Military Lending Act Settlement, Who Qualifies and How Much Could You Receive?
A $615,000 class action settlement over Cash App Borrow loans has received preliminary approval in federal court. It could send automatic payments to about 1,720 people who were protected by the Military Lending Act (MLA) but allegedly received loans with a Military Annual Percentage Rate (MAPR) above the federal 36% limit.
You do not need to file a claim form. If you are in the settlement class and the court grants final approval, payment is expected to be issued automatically from the defendants’ records.
Official settlement website: BlockMLASettlement.com
Quick answer:
- Who is covered: MLA-covered borrowers with Cash App Borrow loans (from First Electronic Bank or Square Financial Services) whose MAPR exceeded 36%.
- Estimated payment: about $58.95 per eligible loan on the official website, or $59.82 per loan in the court’s order. The court also estimates an average of about $250 per class member.
- Key dates: opt out by January 25, 2027; object by February 1, 2027; final approval hearing March 23, 2027.
- Status: preliminarily approved, not final. Payment is not guaranteed.
The settlement involves Block, Inc. (the company behind Cash App) and the two banks that issued the loans, First Electronic Bank and Square Financial Services. The case is Bailey v. Block, Inc., et al., No. 4:25-cv-05625-YGR, in the U.S. District Court for the Northern District of California.
Cash App Borrow Military Lending Settlement: Quick Facts
| Detail | Information |
| Settlement amount | $615,000 |
| Case name | Bailey v. Block, Inc., et al. |
| Case number | 4:25-cv-05625-YGR |
| Court | U.S. District Court, Northern District of California |
| Judge | Yvonne Gonzalez Rogers |
| Defendants | Block, Inc., Square Financial Services, Inc., First Electronic Bank |
| Named plaintiff | Bradley Bailey |
| Settlement class | Approximately 1,720 covered borrowers |
| Law involved | Military Lending Act (10 U.S.C. § 987) |
| Interest-rate limit | 36% MAPR |
| Official settlement website | BlockMLASettlement.com |
| Claim form | Not required |
| Address update / payment selection | Official portal (LoginID and PIN from your notice required) |
| Settlement administrator | Simpluris |
| Administrator email / phone | [email protected] / (833) 417-4917 |
| Preliminary approval | September 28, 2026 |
| Estimated payment (website) | About $58.95 per eligible loan |
| Estimated payment (court order) | $59.82 per eligible loan |
| Court-estimated average | About $250 per class member |
| Payment method | Check by mail, or electronic payment if selected |
| Opt-out deadline | January 25, 2027 |
| Objection deadline | February 1, 2027 |
| Address update / payment selection deadline | March 23, 2027 |
| Final approval hearing | March 23, 2027, 9:00 a.m. Pacific Time |
| Final approval | Pending |
Important: This is a proposed settlement with preliminary court approval only. Payment is not guaranteed until the judge grants final approval.
Who Qualifies for the Cash App Borrow Settlement?
You are a class member if, as of May 28, 2025, all three of the following are true:
- You obtained a Cash App Borrow loan through Cash App from First Electronic Bank (FEB) or Square Financial Services (SFS).
- You were a “covered borrower” under the Military Lending Act when you obtained the loan.
- The MAPR on that loan exceeded 36%.
All three conditions matter. Having a Cash App account, using Cash App Borrow, or having served in the military at some point does not by itself qualify you.
The defendants are using their own loan and borrower records to identify class members. If you received a notice by mail or email, their records indicate you are included. If you are unsure, contact the administrator using the details below.
Are active-duty service members eligible?
Yes, if they meet the other requirements. The MLA protects qualifying active-duty service members, including certain members of the National Guard and Reserves.
Are military spouses and dependents eligible?
Potentially. The MLA also protects certain dependents of covered service members. What matters is whether the person met the legal definition of a covered borrower when the loan was obtained, not whether someone in their household serves today.
Do veterans and retirees qualify?
Not automatically. MLA coverage generally depends on military status when the credit was obtained. A veteran who was no longer a covered borrower at that time may not qualify, while someone who was covered when borrowing should not assume a later change in status disqualifies them.
Do all Cash App Borrow customers qualify?
No. The settlement covers only loans from FEB or SFS made through Cash App to MLA-covered borrowers where the MAPR exceeded 36%. It does not cover every Cash App Borrow loan or every Cash App customer.
Are Georgia residents included?
No. The original complaint included claims under the Georgia Payday Lending Act, but the final class definition excludes Georgia residents. The court’s September 28 order notes the defendants said they did not make the loans at issue to Georgia residents during the relevant period. Georgia residents are not part of this class and are not releasing Georgia Payday Lending Act claims through this settlement.
How Much Money Could You Receive?
The settlement creates a $615,000 common fund. It covers class member payments, attorneys’ fees, litigation costs, administration and a possible service award for the named plaintiff. The fund is not paid to one person, and it is not split equally among all Cash App users.
Payments are tied to the number of qualifying loans in the settlement records and are paid pro rata.
Why are there two per-loan estimates?
The official website and the judge’s order do not match:
| Source | Estimated payment |
| Official settlement website and FAQ | About $58.95 per eligible loan |
| September 28, 2026 court order | $59.82 per eligible loan |
| Court’s estimated average per class member | About $250 |
The court order says the class has about 1,720 members and estimates roughly $431,250 will remain for class members after specified deductions. That works out to an average of about $250 per person.
The $250 figure is an average, not a flat payment. A borrower with one eligible loan could receive far less, and one with several could receive more. Neither per-loan figure is guaranteed. Check the official website or ask the administrator before relying on an exact number.
Illustrative payment examples
Using the website’s $58.95 estimate, for illustration only:
| Eligible loans | Illustrative amount |
| 1 | $58.95 |
| 2 | $117.90 |
| 3 | $176.85 |
| 4 | $235.80 |
| 5 | $294.75 |
The court’s $59.82 estimate would produce slightly different totals. Actual amounts depend on final approval and the administrator’s calculation.
How the settlement fund will be used
| Fund item | Proposed amount |
| Attorneys’ fees | Up to $153,750 (25% of the fund) |
| Litigation expenses | Up to $25,000 |
| Settlement administration | Approximately $16,017 |
| Service award for Bradley Bailey | Up to $5,000 |
| Class member payments | Remaining funds |
All amounts are subject to court approval. Class counsel are Joshua R. Jacobson of Jacobson Phillips PLLC and Randall K. Pulliam and Lee Lowther of Carney Bates & Pulliam, PLLC.
A second distribution of uncashed funds may occur later if practical. If it is not, the agreement names the nonprofit Operation Patriot Packs as a possible recipient of leftover money, an issue the judge has asked the parties to address (see below).
Do You Need to File a Claim Form?
No. The administrator will use the defendants’ records to identify eligible borrowers. If you are a class member and do not opt out, payment is expected automatically after final approval. You do not need to hire a lawyer, pay a fee or submit proof of your loan.
How will payments be sent?
- Paper check mailed to the address on file with Cash App, or
- Electronic payment, if you select it through the administrator’s payment portal.
How to update your address or choose electronic payment
Use the official payment selection portal. You will need the LoginID and PIN printed on your settlement notice. The deadline is March 23, 2027.
If you cannot find your LoginID or PIN, contact the administrator with your full name and mailing address. The portal is not a claim form, and you do not have to use it to remain in the settlement.
What Is the Lawsuit About?
The plaintiff alleged that Block, Square Financial Services and First Electronic Bank violated the Military Lending Act through certain Cash App Borrow loans. Cash App Borrow is a short-term borrowing feature in Cash App, with loans issued by the two banks through Block’s platform.
The complaint alleged that covered borrowers received loans with a MAPR above the 36% limit, and it also raised allegations about how borrowers’ bank accounts were accessed as security for the loans.
What went wrong with the military borrower checks?
The court’s September 28 order describes two technical errors between September 19, 2022 and June 12, 2023. According to the parties’ supplemental filing, the errors meant a borrower’s covered status was not confirmed in time before some loans were issued. As a result, some MLA-protected borrowers allegedly received loans with a MAPR above 36%.
Block says it corrected the errors by June 12, 2023. Because of that, the plaintiff did not seek an injunction forcing changes to lending practices. The case concerns a specific system problem described in the court record. It is not a finding that every Cash App Borrow loan broke military lending law.
How much were borrowers allegedly overcharged?
Figures from the parties’ briefing, as described in the court order:
- Average Cash App Borrow loan: $64.12
- Average interest above the MLA limit: $1.42 per transaction
- Total excess interest paid by the class: $9,809.93
The $615,000 fund is much larger than that total because it is a negotiated amount that reflects litigation risk, possible statutory relief, fees, costs and administration. It should not be described as interest borrowers paid.
What Does the Military Lending Act Require?
The Military Lending Act, 10 U.S.C. § 987, protects covered service members and their dependents from certain high-cost lending practices. Its best-known protection is a 36% cap on the Military Annual Percentage Rate for covered consumer credit.
What is the MAPR?
The MAPR is not always the same as the interest rate in an ad. It can include finance charges, credit insurance premiums, fees for certain credit-related products and other covered charges. A lender cannot necessarily avoid the cap by advertising a low rate while charging other loan-related fees.
The MLA also restricts mandatory arbitration, certain waivers of legal rights, mandatory military allotments and using access to a deposit or savings account as security for the debt.
Did Block or Cash App Admit Wrongdoing?
No. The defendants deny the allegations and deny liability. They say they settled to avoid the expense and burden of further litigation, and they maintain their procedures were reasonably designed to comply with the MLA.
The September 28 order granted preliminary approval and conditionally certified the class for settlement purposes only. It did not find that any defendant violated the law.
Your Options and Deadlines
Option 1: Do nothing and stay in the settlement
You do not need to act. If you remain in the class and the court grants final approval, you will receive payment automatically. You will also be bound by the court’s decisions and will release the claims covered by the settlement.
Option 2: Opt out by January 25, 2027
Opting out preserves your right to sue the defendants on your own, but you will receive no payment from this settlement. Mail a personally signed written request, postmarked by January 25, 2027, to:
Bailey v. Block, Inc. c/o Settlement Administrator P.O. Box 25226 Santa Ana, CA 92799-9958
Include your full name, mailing address, telephone number, the $Cashtag associated with your Cash App account, and a clear statement that you want to be excluded from the settlement class in Bailey v. Block, Inc., et al. (N.D. Cal.). If you have moved, also include your new address.
Option 3: Object by February 1, 2027
If you think the settlement is unfair, unreasonable or inadequate, you can submit a written, signed objection to the court. An objection does not remove you from the class. If the judge overrules it and approves the settlement, you stay in the class and may still be paid.
Include the case name (Bailey v. Block, Inc., et al.), the case number (4:25-cv-05625-YGR), your reasons, any supporting documents, and whether you plan to appear at the hearing or be represented by a lawyer. File it with, or send it to, the Clerk of Court by February 1, 2027:
United States District Court Northern District of California 1301 Clay Street Oakland, CA 94612
You cannot both opt out and object. If you opt out, the settlement no longer applies to you, so you have no standing to object to it as a class member.
Important Dates
| Event | Date |
| Alleged system errors began | September 19, 2022 |
| Block says errors were corrected | June 12, 2023 |
| Preliminary approval | September 28, 2026 |
| Notice mailing | October 26, 2026 |
| Motion for final approval due | December 21, 2026 |
| Opt-out deadline | January 25, 2027 |
| Objection deadline | February 1, 2027 |
| Supplemental notice-status filing | March 9, 2027 |
| Address update / payment selection deadline | March 23, 2027 |
| Final approval hearing | March 23, 2027, 9:00 a.m. PT |
When will payments be sent?
No firm payment date has been announced. The court must first grant final approval, and the administrator must then complete distribution. Keep your contact details current and watch the official website for updates.
Do you have to attend the hearing?
No. Class members do not have to attend the final fairness hearing, although you may appear if you filed a timely objection. It will be held at:
Ronald V. Dellums Federal Building & U.S. Courthouse Courtroom 1, Fourth Floor 1301 Clay Street, Oakland, CA 94612
Judge Yvonne Gonzalez Rogers will decide whether the settlement is fair, reasonable and adequate and will consider any objections. The court may postpone the hearing without further notice.
Why Hasn’t the Settlement Received Final Approval?
Preliminary approval lets the notice process begin and sets the opt-out and objection deadlines. Final approval comes only after class members have had a chance to respond.
The judge also flagged a specific issue. The agreement names Operation Patriot Packs, a nonprofit, as a possible recipient of leftover funds if a second distribution to class members is not practical. The judge said the parties gave too little information about the organization and directed them to submit more before final approval. The court also noted that Ninth Circuit law requires a meaningful connection between the class and any nonprofit receiving leftover money.
This is not a rejection of the settlement. The parties must address the concern first. If the court ultimately denies approval, the settlement will not take effect and no payments will be made.
Related Military Lending Act Cases on AllAboutLawyer
The Cash App case is one of several recent lawsuits over lending products allegedly offered to military borrowers in ways that conflict with the MLA. If you are researching your options, you may also want to read our coverage of the H&R Block military overcharge lawsuit, the claims against Jackson Hewitt and TurboTax over charges to military members, and our explainer on TurboTax refund advance loans and the Military Lending Act.
These are separate legal matters involving different companies, products and allegations. Being eligible for one does not make you eligible for the others, and the Cash App settlement does not automatically include borrowers from those cases.
How to Contact the Settlement Administrator
The settlement is administered by Simpluris.
- Website: BlockMLASettlement.com
- Email: [email protected]
- Phone: (833) 417-4917
- Mail: Bailey v. Block, Inc., c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799-9958
Use only the official contact details. Do not pay anyone to “register” you, and do not share your Cash App password or PIN. The administrator does not need your Cash App login credentials to issue payment. Do not contact the court, the defendants or defense counsel with questions about the settlement.
Frequently Asked Questions
Is the Cash App Borrow settlement real?
Yes. It is a proposed $615,000 class settlement in Bailey v. Block, Inc., et al., No. 4:25-cv-05625-YGR, in the Northern District of California. Judge Yvonne Gonzalez Rogers granted preliminary approval on September 28, 2026.
How much is the Cash App Borrow settlement worth per person?
The fund is $615,000. The official website estimates about $58.95 per eligible loan, the court order says $59.82 per loan, and the court estimates an average of about $250 per class member. All of these are estimates, not guaranteed payments.
Do I need to file a claim?
No. Eligible class members who do not opt out are expected to be paid automatically after final approval.
Who is eligible?
People who got a Cash App Borrow loan from First Electronic Bank or Square Financial Services through Cash App, were MLA-covered borrowers at that time, and had a loan MAPR above 36%, as of May 28, 2025.
Are active-duty members, spouses and veterans eligible?
Active-duty members who meet the requirements are eligible. Qualifying dependents may be if they were covered borrowers when they took the loan. Veterans are not automatically eligible; it depends on whether they were covered when the loan was made.
Are Georgia residents included?
No. The final class definition excludes Georgia residents.
What is the opt-out deadline?
January 25, 2027. The signed request must be postmarked by that date.
What is the objection deadline?
February 1, 2027. Objections must be in writing and submitted to the federal court.
Can I opt out and still get paid?
No. Opting out means no payment from this settlement, but you keep the right to bring your own claims.
When is the final approval hearing?
March 23, 2027, at 9:00 a.m. Pacific Time, before Judge Yvonne Gonzalez Rogers in Oakland, California.
When will payments arrive?
No date has been announced. Payment depends on final approval and the administrator’s distribution process.
How do I change my address or choose electronic payment?
Use the official payment selection portal with the LoginID and PIN printed on your notice. The deadline is March 23, 2027.
What if I did not receive a notice?
Contact the administrator by email or phone with your full name and mailing address to ask whether you are in the class and to request your LoginID and PIN.
Are settlement payments taxable?
Tax treatment depends on your situation. AllAboutLawyer.com does not give tax advice, so consult a qualified tax professional.
Is this the same as the Cash App data breach settlement?
No. This settlement concerns Cash App Borrow loans and alleged Military Lending Act violations. Other Cash App settlements involve different issues, such as data security, and have separate case numbers, eligibility rules and administrators.
Sources
- Official settlement website, Bailey v. Block, Inc.: https://blockmlasettlement.com/
- Official settlement FAQ: https://blockmlasettlement.com/faq
- Official important dates page: https://blockmlasettlement.com/dates
- Official address update and payment selection portal: https://blockmlasettlement.com/form/payment/
- Long-form settlement notice (Simpluris): https://cw.simpluris.com/docs/public/downloads/BBO2/LONG_FORM_NOTICE4VvQ
- Order granting preliminary approval, Bailey v. Block, Inc., No. 4:25-cv-05625-YGR, Doc. 44 (N.D. Cal. Sept. 28, 2026): https://www.govinfo.gov/content/pkg/USCOURTS-cand-4_25-cv-05625/pdf/USCOURTS-cand-4_25-cv-05625-0.pdf
- Military Lending Act, 10 U.S.C. § 987: https://uscode.house.gov/us/usc/119-120/t10/s987/
- Consumer Financial Protection Bureau, “What is covered under the Military Lending Act?”: https://www.consumerfinance.gov/ask-cfpb/what-is-covered-under-the-military-lending-act-en-1785/
Verification note: The September 28, 2026 order grants preliminary approval and conditionally certifies the class for settlement purposes only. It makes no finding that the defendants violated the Military Lending Act. The official website displays about $58.95 per eligible loan while the court order states $59.82, so confirm current figures with the administrator. Final approval and payments are pending.
Researched and written by Israr Ahmad, Legal Content Researcher. AllAboutLawyer.com is an independent U.S. consumer legal information website, not a law firm. This article is for informational purposes only and is not legal advice. The defendants deny the allegations and any wrongdoing or liability.
About the Author
Israr Ahmad is a legal content researcher with 4+ years of experience covering class action settlements and consumer rights cases. He has researched and published coverage of 2,500+ settlements using verified court records, settlement administrator filings, and government sources. Learn more about Israr.