Consumer complaint received 2024-09-09
Product: Checking or savings account — Other banking product or service
Issue: Closing an account — Company closed your account
Company: Block, Inc. (NE)

On XX/XX/XXXX, I logged into my Cash App account and discovered that it had been closed. The notification from Cash App indicated that the closure was due to an alleged violation of the terms of service. Upon receiving this notice, I immediately contacted Cash Apps support team, but they were unable to provide any information regarding the specific reasons for the closure. I was informed that the case was being handled by a separate department or external entity, which Cash App claimed it had no ability to contact or obtain information from. 

Over the following days, I repeatedly reached out to support, seeking clarification as to the basis for the closure. As a loyal customer since XXXX, I explained that I had not engaged in any activities that could justify such an action. Despite these efforts, Cash App was unable to provide any further information.

Approximately two weeks prior to XX/XX/XXXX, my account was reopened. As with the closure, Cash App failed to notify me of this development, and no explanation was provided for why the account had been closed in the first place. Upon contacting support once again, I was informed that they would provide more information once the case was fully resolved, but to date, no such information has been forthcoming. Despite both text and phone communications, Cash App representatives continue to state that they have no access to the details of the case and no means of contacting the entity responsible for handling it. 

I believe that Cash Apps refusal to provide a clear explanation for the account closure violates my rights as a consumer under U.S. financial regulations. Specifically, under Regulation E ( 12 CFR Part 1005 ), which implements the Electronic Fund Transfer Act ( EFTA ), financial institutions are required to provide clear and timely information regarding electronic transactions, including the right to receive specific reasons for any adverse action taken against a consumer 's account. Additionally, the Equal Credit Opportunity Act ( ECOA ) ( 15 U.S.C. 1691 ), as implemented by Regulation B, requires that financial institutions provide written notice of any adverse actions, including account closures, with specific reasons for such actions, unless certain fraud or criminal activity is suspected, which Cash App has not indicated in this case.

Furthermore, under general principles of consumer protection law, including the Consumer Financial Protection Bureau ( CFPB ) s guidelines, financial institutions are required to act transparently and fairly when dealing with consumer accounts. It is my right as a customer to receive a clear and detailed explanation as to why my account was closed, especially considering the significant financial disruption this has caused. Cash App was my primary financial service provider, and the sudden and unexplained closure of my account forced me to reorganize my financial arrangements at considerable inconvenience. 

Despite Cash Apps repeated claims that they are unable to provide information, they have an obligation under federal law to be transparent with customers about adverse actions taken on their accounts. Their failure to disclose the reasoning behind the closure, coupled with the claim that they can not contact the entity responsible for the case, reflects a serious lack of transparency and potentially violates consumer protection laws. I request that Cash App immediately provide the necessary information regarding the closure of my account and the reasons for their actions.