Consumer complaint received 2025-09-16 00:00:00
Product: Prepaid card — General-purpose prepaid card
Issue: Problem with a purchase or transfer — Card company isn't resolving a dispute about a purchase or transfer
Company: Block, Inc.
State: VA

Complaint narrative:
Subject : New Complaint Improper Handling of Refund/Unauthorized Transaction by Cash App XXXX XXXX XXXX ( Prepaid Account ) Reference Prior Complaint ID XXXX To the Consumer Financial Protection Bureau : I am submitting this additional complaint because my prior complaint ( ID XXXX ) appears not to have fully addressed the scope of the problem. This transaction involved a prepaid account issued by XXXXXXXX XXXX and serviced by Cash App/Square. 

Despite my prompt notification, the company has refused to correct an unauthorized transaction and has not provided the documentation required by federal law to justify its denial. 


1. Description of the Issue On or about XX/XX/year> an unauthorized debit of {$39.00} occurred from my Cash AppXXXXXXXX XXXX prepaid account in connection with a merchant purchase. The merchants own warranty and my receipt show that a refund was due but not provided. 

I immediately reported the error through Cash Apps dispute process and clearly identified that it was unauthorized with respect to the refund. Cash AppXXXXXXXX XXXX denied my dispute within secondswithout any investigation and without supplying any evidence of authorization, delivery, or receipt. 

This is not the first time this merchant has engaged in these tactics. They continue to stonewall, stifle, and even prevent purchases from arriving at all. In prior instances I chose not to escalate, but in this case the denial of a warranted refund and the lack of due process has caused substantial stress and hardship. 

I have repeatedly asked for the supporting documents and have not received them. This has left me without the funds and without the information needed to evaluate the denial. 


2. Why This Requires CFPB Intervention Under the Electronic Fund Transfer Act ( 15 U.S.C. 1693 et seq. ) and Regulation E ( 12 C.F.R. Part 1005 ), financial institutions handling electronic fund transfersincluding prepaid accountsmust : Investigate consumer reports of unauthorized transfers promptly and in good faith ; Provide a written explanation of their findings along with the evidence relied upon ; Provisionally credit the account within 10 business days if the investigation takes longer. 

Cash AppXXXXXXXX XXXX instantaneous denial without evidence strongly suggests noncompliance with these requirements. Because this is a prepaid account, your own guidance confirms that Regulation E protections apply ( XXXX XXXX XXXXwww.consumerfinance.govXXXX  ). 

In addition, as a Virginia resident, I am protected under the Virginia Consumer Protection Act ( Va. Code 59.1-196207 ), which prohibits misrepresenting or failing to honor consumer transactions. Cash AppXXXX XXXX failure to supply documentation and correct the error appears to violate these standards. 

Finally, I note that my previous complaint was referred to the FDIC. That referral was untimely and prejudicial because the issue at hand squarely concerns a prepaid account dispute governed by the CFPBs own rules. 


3. Desired Resolution I request that the CFPB require Cash AppXXXXXXXX XXXX to : Conduct a proper investigation of the disputed transaction ; Provide me with copies of all documents, recordings, or other evidence used to deny my claim ; Provisionally credit my account for the disputed amount pending a full investigation, as Regulation E requires ; Confirm in writing the outcome of their investigation and the steps taken to remedy any error. 

I also ask the Bureau to monitor this case to ensure compliance with both federal and Virginia consumer-protection laws and to correct any erroneous referrals so that the matter is handled promptly and fairly. 

Thank you for your prompt attention to this matter.

Company response to consumer: Closed with explanation