Consumer complaint received 2026-04-30 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Unexpected or other fees — 
Company: Block, Inc.
State: TX

Complaint narrative:
I. Summary of the Issue Cash App denied my dispute regarding a misdirected {$250.00} payment sent on XX/XX/XXXX, after its system autopopulated the wrong XXXX without providing the required new recipient warning. However, Cash Apps denial is invalid because : Cash App investigated the wrong transaction, Cash App incorrectly documented that I disputed a payment to XXXX XXXX, When the actual misdirected payment went to $ XXXX. This error occurred because the Cash App representative misunderstood me due to a language barrier, causing Cash App to dispute the wrong transaction and then deny the claim based on incorrect information. I notified Cash App of this mistake in writing on XX/XX/XXXX, but Cash App refused to correct it. XXXX. Factual Background Supported by Attached Documents On XX/XX/XXXX, I attempted to pay a laborer named XXXX who had worked for me previously. When I typed XXXX, Cash App autopopulated the wrong individual, $ XXXX, without any new recipient verification prompt. The correct XXXX never received the funds, forcing me to resend the payment from my XXXX insurance funds during a totalloss fire displacement. I immediately disputed the misdirected payment. The unintended recipient declined the refund. Cash App denied my dispute after incorrectly determining the transaction was authorized. Cash Apps denial was based on a different XXXX XXXX XXXX due to a representative misunderstanding my dispute. I notified Cash App of this error in writing on XX/XX/XXXX, stating that they had disputed the wrong transaction. Cash App repeated the same incorrect narrative in its CFPB response dated XX/XX/XXXX, proving that the wrong transaction was investigated. III. Legal Violations 1. Violation of the Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693f EFTA requires : A reasonable investigation A determination based on accurate information Correction of the error Copies of documents relied upon Cash App violated EFTA because : It investigated the wrong transaction It relied on incorrect recipient information It failed to investigate the misdirected payment to $ XXXX It denied the claim based on irrelevant data It failed to provide documents related to the correct transaction A denial based on the wrong transaction can not constitute a reasonable investigation under EFTA. 2. Violation of Regulation E, 12 C.F.R. 1005.11 Regulation E requires : Investigation of the specific alleged error Use of accurate, relevant information Correction of the error Provision of all documents relied upon Cash App violated Regulation E by : Investigating a payment to XXXX XXXX, which I never disputed Failing to investigate the misdirected payment to $ XXXX Failing to correct the error after being notified Failing to provide documents related to the correct transaction This constitutes a procedurally defective investigation. 3. Violation of Texas Finance Code Chapter 59 ( Unauthorized Transfers ) Texas law requires : Safeguards to prevent misdirected transfers Clear warnings when sending to a new recipient Goodfaith investigation of consumer complaints Cash App violated Texas Finance Code 59.304 and 59.307 because : The app failed to warn that the recipient was new The autopopulate feature misdirected the payment Cash App failed to investigate the correct transaction Cash App failed to correct the error after being notified 4. Deceptive Trade Practices ( Texas Business & Commerce Code 17.46 ) Cash Apps actions constitute deceptive practices because : It represented that the dispute was investigated when it was not It provided misleading information to XXXX XXXX It refused to correct a known internal error It denied the claim based on a transaction I never disputed IV. Harm Caused Cash Apps mishandling occurred during the aftermath of a totalloss house fire, when my family was displaced and dependent on XXXX funds. Because Cash App disputed the wrong transaction : I lost {$250.00} in essential living funds I was forced to duplicate payment to the correct laborer My bank dispute was denied based on Cash Apps incorrect information I experienced additional hardship during a crisis

Company response to consumer: Closed with explanation