Servicemembers and covered military dependents who took out a Cash App Borrow loan priced above the Military Lending Act’s 36% cap do not need to file anything to share in the $615,000 Cash App Borrow settlement — payments are set to go out automatically from the lenders’ own loan records. The court estimated the average payment at about $250, which is several times the size of the average loan in the class.
Status: Preliminary approval granted September 28, 2026 | No claim form — payment is automatic | Opt-out postmark deadline January 25, 2027 | Final approval hearing March 23, 2027
Why There Is Nothing to File
Most consumer settlements make people prove they belong in the class. This one does not, because the defendants already know who the class members are. Under the preliminary approval order, the defendants were to hand class members’ contact data to the settlement administrator, Simpluris, Inc., by October 12, 2026. Notice was to go out by email and postcard by October 26, 2026, and the people identified in those records are the people who get paid.
That means there is no receipt to find, no notice ID to type in and no claim deadline to track. A class member who wants the money does nothing at all. The one practical step is to keep a current email address and mailing address on file with Cash App, so that the notice and, later, the payment reach you.
What the Lawsuit Was About
The case is Bailey v. Block, Inc., No. 4:25-cv-05625-YGR, in the U.S. District Court for the Northern District of California. It began in Alameda County Superior Court against Block, Inc., which operates Cash App, and the two banks that made Cash App Borrow loans, Square Financial Services and First Electronic Bank. The defendants moved it to federal court on July 3, 2025. The complaint alleged violations of the Military Lending Act and the Georgia Payday Loan Act.
The Military Lending Act limits lenders to a Military Annual Percentage Rate of 36% on covered consumer credit extended to active-duty servicemembers and their covered dependents, who are called covered borrowers. According to the parties’ supplemental brief, two technology errors between September 19, 2022 and June 12, 2023 meant covered-borrower status was not always checked before a loan was funded, so some covered borrowers received loans priced above the cap. Block fixed the errors by June 12, 2023.
The defendants deny wrongdoing and say they had procedures reasonably designed to comply with the law. The settlement is not an admission of liability.
Who Is in the Class
The settlement class is everyone who, as of May 28, 2025, took out a Cash App Borrow loan from First Electronic Bank or Square Financial Services through Cash App, was a covered borrower under the Military Lending Act when the loan was made, and had a loan with a Military Annual Percentage Rate above 36%.
The court counted about 1,720 class members, and their loans averaged $64.12. Georgia residents are not part of the class. The final class definition dropped them, so no Georgia Payday Loan Act claims are released; defense counsel told the court the defendants did not make the loans at issue to Georgia residents during the relevant period.
Where the $615,000 Goes
| Total common fund | $615,000, paid by Block |
| Attorneys’ fees requested | Up to $153,750 |
| Litigation costs requested | Up to $25,000 |
| Administration (estimate) | About $16,017 |
| Service award for the named plaintiff | Up to $5,000 |
| Left for class members (court’s estimate) | About $431,250, split pro rata — roughly $250 per person on average |
Every deduction is subject to court approval, so the $250 figure is an estimate rather than a promise. Individual payments are pro rata, and the final amount depends on what the court allows for fees, costs and the service award.
None of the money returns to the defendants. If some checks go uncashed, a second pro rata distribution goes to class members who cashed their first payment, after 150 days. Any remainder too small to redistribute goes to Operation Patriot Packs, a nonprofit the court has asked the parties to explain further before final approval.
The Dates That Still Matter
Because there is no claim deadline, the calendar is mostly about people who want to leave the settlement or tell the judge they disagree with it.
| October 26, 2026 | Email and postcard notice sent |
| December 21, 2026 | Class counsel files the motion for fees, costs and the service award |
| January 25, 2027 | Exclusion requests must be postmarked |
| February 1, 2027 | Written objections due |
| March 23, 2027, 9:00 a.m. | Final approval hearing in Oakland before Judge Yvonne Gonzalez Rogers; the court may move the date without further notice |
Staying In, Opting Out or Objecting
Staying in requires no action. If the court grants final approval, you are paid and you release the claims the settlement covers.
Opting out means mailing a written exclusion request to the settlement administrator, postmarked by January 25, 2027, following the instructions in the class notice. Someone who opts out gets no payment from this settlement but keeps any individual claim against the defendants.
Objecting is done in writing to the administrator by February 1, 2027. Only people who remain in the class can object.
As of October 1, 2026, no settlement website had launched and no payment date had been announced. Payments follow only after final approval and the resolution of any appeals, and if approval is granted the parties must later file a post-distribution accounting on a date the court sets. Updates are tracked on the Cash App Borrow Military Lending Act settlement page on OpenClassActions.com.
Frequently Asked Questions
Do I have to file a claim in the Cash App Borrow military settlement?
No. There is no claim form. Class members are identified from the defendants’ loan records, and anyone who does not opt out is paid automatically if the court grants final approval.
How much will I get?
The court estimated an average of about $250 per class member, based on roughly $431,250 left after requested fees, costs, administration and a service award, divided among about 1,720 people. Payments are pro rata and the final amount depends on what the court approves.
Who counts as a covered borrower?
Under the Military Lending Act, covered borrowers are active-duty servicemembers and their covered dependents. The class is covered borrowers whose Cash App Borrow loans carried a Military Annual Percentage Rate above 36%.
Are Georgia residents part of the settlement?
No. The final class definition removed Georgia residents, and no Georgia Payday Loan Act claims are released.
When will payments be sent?
No payment date had been announced as of October 1, 2026. Payments come only after the court grants final approval, with the hearing set for March 23, 2027, and after any appeals are resolved.
What happens if I do not cash my check?
Money from uncashed checks is redistributed pro rata to class members who cashed their first payment, after 150 days. Nothing goes back to the defendants.
Sources
- Bailey v. Block, Inc., No. 4:25-cv-05625-YGR (N.D. Cal.), court docket.
- Order Granting Preliminary Approval of Settlement and Setting Deadlines, ECF No. 44 (September 28, 2026).
- Plaintiff’s Motion for Preliminary Approval with the administrator’s declaration, ECF No. 37, and Supplemental Brief, ECF No. 43.
- OpenClassActions.com — Cash App Borrow Military Lending Act Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: Cash App Borrow $615,000 Military Lending Act Settlement — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.