Consumer complaint received 2025-06-26 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Block, Inc.
State: AK

Complaint narrative:
I am filing this complaint against Cash App regarding the wrongful closure of my account and their refusal to properly handle fraudulent charges, issue provisional credits, and comply with federal law under Regulation E of the Electronic Fund Transfer Act ( EFTA ). 

On XX/XX/year>, multiple unauthorized charges were made using my Cash App debit card through an online merchant. I discovered the fraudulent activity the next day, XX/XX/XXXX, and immediately filed disputes for all of the charges. Despite my prompt reporting, Cash App refused to investigate the claims, denied my disputes without any action, and did not provide any provisional credit or support. They offered no assistance, no communication, and made no effort to fulfill their obligations under Regulation E.

Weeks later, at the end of may, a second round of fraudulent charges from the same merchant appeared on my account. I filed disputes again. This time, Cash App agreed to investigate. Throughout that process, I repeatedly requested provisional credits during the investigation, as required by Regulation E. I explicitly referenced the law and their obligations under the EFTA.

Instead of honoring these obligations, Cash App falsely claimed that Regulation E did not apply to them because they only offer pass-through FDIC insurance . I informed them that this interpretation was incorrect, and that federal law still applies. After that, they began ignoring my messages entirely. They provided no updates, failed to issue provisional credit, and allowed the investigation to extend well beyond the 10-business-day limit without explanation or resolution. 

On XX/XX/year>, shortly after I filed a CFPB complaint, Cash App suddenly resolved all of the new disputes in my favor, despite earlier that day finally responding to me through their live chat in the app for the first time in over a week in which they told me that the investigation was still ongoing with no resolution expected in the near future. Among the resolved charges was one from the first series of charges that I had added into the second group to see if they would actually investigate it this time, this charge had occurred on XX/XX/year> stemming from the same original batch of fraudulent transactions that Cash App had previously refused to investigate. 

This reversal of a XX/XX/XXXX charge is the sole reason I refiled disputes for the remaining 12 charges from XX/XX/XXXX. Cash Apps decision to resolve in my favor, one of those same-day transactions confirmed that the other XX/XX/XXXX charges were also part of the same fraudulent activity and had been wrongly denied the first time. This made it absolutely clear that my original disputes had been mishandled, and that all the XX/XX/XXXX charges deserved to be resolved in my favor. 

On XX/XX/year>, I re-submitted disputes for the remaining 12 charges from XX/XX/XXXX. These consisted of around 10 charges of {$19.00} and 2 charges of {$4.00} This is a significant financial loss, totaling nearly {$210.00}, that was fraudulently spent from my account. 

Rather than investigate these remaining charges or provide provisional credit as legally required, Cash App closed my account the very next day on XX/XX/year> and denied all 12 disputes outright. They sent me a generic deactivation email that said : Your Cash App account has been deactivated. You cant access most features of the app, but youll still be able to withdraw your money, plus sell any stocks or bitcoin. Reasons for this decision include your account history, transaction disputes, or other possible violations of the Cash Terms of Service. We can not provide further details regarding your Cash App account deactivation and are unable to change this decision.

No specific legitimate explanation was given. I had no violations, no prior issues, and the only unusual activity on my account was me trying to recover stolen money and hold the company accountable under federal law.

This entire sequence of events clearly shows that Cash App acted in bad faith ignoring legitimate fraud disputes, misrepresenting their legal obligations under Regulation E, while providing false information and lying to customers regarding their rights and protection under regulation E, and ultimately retaliating against me for using the CFPB complaint process and asserting my rights. The closure of my account was not based on any wrongdoing of mine it was to avoid liability and further refund obligations.

Company response to consumer: Closed with explanation