Consumer complaint received 2025-11-18 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unexpected or other fees — 
Company: Block, Inc.
State: TX

Complaint narrative:
On Monday morning, XX/XX/year>, at approximately XXXX XXXX., Cash Apps XXXX  pay over time feature initiated four separate loans when I attempted to pay off my existing balances. I believed I was making payments on what I owed. Instead, the app converted four past purchases into new loans and charged finance fees on each one. 

These four loans were created in error. I did not intend to initiate new credit. The moment I realized what happened, I paid all four loans off immediately. Each loan was opened at approximately XXXXXXXX XXXX  and paid off by XXXXXXXX XXXX  or XXXX XXXX In other words, each loan existed for about one to two minutes. 

When the app converted these past purchases into loans, Cash App automatically issued Returned from past purchase credits to my Cash balance. This means money that I had spent at XXXX XXXX, XXXX XXXX, and XXXX XXXX XXXX was refunded to me only because the app initiated a loan. I did not request refunds for any of these purchases. 

As soon as I saw what the app had done, I immediately repaid the full amounts of all XXXX loans, including the finance fees that had been added. Because the loans were open for only one or two minutes, the finance fees were not earned and did not reflect any use of credit. 

The amounts and fees were as follows : XXXX. XXXX XXXX. XXXX converted {$88.00}. Finance fee {$6.00}. 
XXXX. XXXX XXXX. Amount converted {$51.00}. Finance fee {$3.00}. 
XXXX. XXXX XXXX. Amount converted {$90.00}. Finance fee {$6.00}. 
XXXX. XXXX XXXX XXXX XXXX. Amount converted {$47.00}. Finance fee {$3.00}. 

I contacted Cash App Lending Support immediately and sent screenshots of each transaction. Support responded with repeated template emails that did not address what actually occurred. They stated that loan payments can not be reversed, even though I never requested a loan reversal. I only requested that the finance fees be refunded because the loans were created accidentally and were never used as credit. Support did not review the timestamps, did not acknowledge the evidence, and did not perform any investigation. 

This lack of investigation is concerning. Regulation E requires financial institutions to investigate errors involving electronic fund transfers. Cash App did not investigate and did not provide any meaningful review of the issue. 

The design of the Cash App XXXX interface is confusing and played a major role in the error. A few days later, on Saturday night, I nearly made the same mistake again. When I opened the app to make a payment, the screen prominently displayed a large bar labeled Available to get back {$310.00} and a button labeled Switch to XXXX. The screen appears when attempting to pay an existing balance but instead directs users into converting purchases into new loans. I only avoided a second mistake because I slowed down and paid extremely close attention. 

This demonstrates that the app interface does not clearly separate the ability to pay existing balances from the option to convert past transactions into pay over time loans. It creates a high risk of accidental loan creation. 

The CFPB has previously taken action against Block , Inc., the parent of Cash App, and has documented failures in handling consumer complaints, failures to investigate errors, and failures to comply with the error resolution requirements under Regulation E. My experience reflects the same pattern. Cash App sent template responses, refused escalation, and did not review the evidence I provided. 

I am requesting the following : 1. A refund of the finance fees totaling {$20.00}.

2. A proper error investigation under Regulation E.

3. Assurance that Cash App will review its user interface to prevent accidental loan initiations, especially where the Switch to XXXX  option is displayed in the same location where users expect to make payments. 

I acted immediately, paid off all loans within minutes, contacted support in good faith, and provided detailed screenshots. The finance fees were not earned. Cash Apps refusal to investigate is inconsistent with Regulation E and with the improvements Block , Inc. is required to make under recent CFPB enforcement findings.

Company response to consumer: Closed with explanation