Consumer complaint received 2025-10-28 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: Block, Inc.
State: TX

Complaint narrative:
I am submitting this formal complaint against Square Inc. ( Block , Inc. ) regarding the abrupt deactivation of my business account and the unlawful withholding of funds unrelated to a previously covered dispute. These actions have severely disrupted my small business operations in Texas. 
I am the owner of a stone countertop business and have maintained a Square account in good standing since early XXXX. On XX/XX/XXXX, a client initiated a fraudulent chargeback dispute. Square withdrew the disputed amount from my Square Checking account to cover the claim pending investigation. I promptly submitted all supporting documentation and filed a case in Texas small claims court against the client. 
On XX/XX/XXXX, a separate client made a legitimate payment through Square for materials I was scheduled to purchase. This was the only available balance in my account at the time. However, overnight between XX/XX/XXXX and XX/XX/XXXX, Square deactivated my account without warning, citing suspicious activity, and withheld all remaining funds, including the payment made by the second client. These funds were not related to the dispute and were essential to fulfilling a paid order. 
Square informed me that all remaining funds would be held for 90 days, until XX/XX/XXXX, but refused to provide any explanation or justification for this action. I have made multiple attempts to contact Squares support team, but my calls have been disconnected or redirected without resolution. 
To be clear : The disputed transaction was already covered by the funds withdrawn on XX/XX/XXXX. 
The funds withheld on XX/XX/XXXX were entirely separate, paid by another client on XX/XX/XXXX. 
I had no funds in my account until XX/XX/XXXX, when the second client paid. 
I am not contesting the closure of my accountI accept Squares decision to terminate the relationship. 
What I do contest is the unjustified three-month hold on funds that are rightfully mine and essential to fulfilling contractual obligations. 
I believe Squares actions violate the principles of fair and transparent financial practices as outlined in the Electronic Fund Transfer Act ( EFTA ) and Regulation E, which require financial institutions to : Provide clear disclosures regarding account closures and fund holds Resolve disputes in a timely and transparent manner Avoid deceptive or abusive practices that interfere with a consumers ability to access their funds Additionally, Squares conduct may constitute a violation of the CFPBs UDAAP ( Unfair, Deceptive, or Abusive Acts or Practices ) standards, particularly in its failure to : Provide a clear reason for account termination Distinguish between disputed and non-disputed funds Offer a reasonable path for resolution I respectfully request the CFPB to investigate Square Inc.s handling of this matter and to compel the company to : 1. Provide a detailed explanation for the account deactivation and fund hold 2. Immediately release all non-disputed funds held in my Square Checking account 3. Review its customer service and dispute resolution practices for small business accounts I am attaching supporting documentation, including : The original chargeback notice My response and evidence submitted to Square The small claims court filing Screenshots of my Square account and communications The deactivation notice Thank you for your attention to this matter. As a small business owner, I rely on fair access to financial services to serve my clients and sustain operations. Squares actions have jeopardized my ability to do so.

Company response to consumer: Closed with explanation