Consumer complaint received 2024-06-07
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Money was taken from your account on the wrong day or for the wrong amount
Company: Block, Inc. (MN)

Notably, I had a similar issue with a CashApp transaction at a hotel a couple of years ago. See CFPB Complaint # XXXX. 

On XX/XX/year>, I checked in to the XXXX XXXX XXXX XXXX XXXX, MN. I inserted my CashApp card into the chip reader and was told by the clerk that the authorization for {$260.00} was declined. I knew that I had sufficient funds on the card and that I had unlocked my card before entering the hotel. The clerk told me to try the card again. I inserted the card and the transaction was approved. When I viewed my transaction history, it showed two authorizations by CashApp made minutes apart each for {$260.00}. 

I checked out of the hotel the following day ( XX/XX/XXXX ). I was billed {$100.00}, and the balance from the authorized {$260.00} was immediately refunded to my card. The " declined '' {$260.00} remained. On XX/XX/XXXX at XXXX a.m., I contacted CashApp customer service via their chat feature. After explaining the situation to a bot, I got a so-called Advocate named XXXX via chat. I explained the situation and it was clear to me that I was either talking to a bot or someone who lacked understanding because I was repeatedly told that the merchant would have to release the hold or it would remain for 30 days. After much back and forth, the bot/advocate continued to insist that the merchant had to release the hold. After about 30 minutes, XXXX stated that I should contact them again if my funds were not available 30 days later, XX/XX/XXXX. 

I asked XXXX to provide me with an authorization or transaction number for this hold and she stated that they could not provide that information to me. 

On XX/XX/year>, I contacted the hotel. XXXX XXXX XXXX XXXX provided me with a screenshot of where the first {$260.00} was denied ( in bright red letters ) and beneath it the second authorization was successful. She also provided me with a final bill to indicate that I had checked out and a phone number to both the XXXX property she managed and XXXXXXXX XXXX  corporate offices. 

I went back into the CashApp support chat, reiterated my complaint, and provided the screenshots that XXXX XXXX provided to me along with a screen shot from my own CashApp transaction list showing the double charge. I was ultimately told again that I had to wait 30 days for my funds to be released. 

As I mentioned in my opening sentence, this is the second time that I have had this issue with a hotel. This indicates that there may be a technical issue of some type during initial processing. Regardless, no banking institution can lawfully deny a customer access to their own funds without proving that there is a valid authorization from a merchant when such is the subject of dispute. Despite the fact that this is a new age " internet bank, '' it is still a financial institution operated by XXXX XXXX. 

I am traveling and this small {$260.00} hold has caused me a great deal of expense when the solution is quite simple. CashApp is a robot run version of a bank and in addition to this complaint, I am urging Congress to tighten their regulatory framework around consumer complaints involving holds on funds because it appears that CashApp caters to mostly low income customers and therefore does not make the effort to resolve their issues. 

Finally, funds holds by CashApp should be investigated, categorized, and evaluated to determine how many of its customers have been financially harmed by their negligent refusal to investigate customer claims