Published
October 1, 2026
Active-duty servicemembers and covered dependents whose Cash App Borrow loans exceeded the Military Lending Act’s 36% rate cap will be paid automatically from Block’s loan records under the $615,000 Cash App Borrow class action settlement, an average of about $250 each; there is no claim form to file. A federal judge granted preliminary approval on September 28, 2026, and the final approval hearing is set for March 23, 2027.
Current Status
There is no claim form; class members are paid automatically if the settlement receives final approval. Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California granted preliminary approval on September 28, 2026. Notice goes out by email and postcard by October 26, 2026, the opt-out deadline is January 25, 2027, and the final approval hearing is set for March 23, 2027. No payment date had been announced as of October 1, 2026.Free settlement alerts
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Status
Pending — Automatic Payment
preliminary approval granted September 28, 2026 · final approval hearing March 23, 2027
Opt-Out Deadline
January 25, 2027
postmark deadline to exclude yourself · objections due February 1, 2027
Estimated Payout
About $250 Average
court's estimate · about $431,250 split pro rata among about 1,720 class members
Proof Required
Automatic Payment
no claim form to file · class members are identified from the defendants' loan records
What Changed Recently?
On September 28, 2026, the court preliminarily approved the settlement, conditionally certified the settlement class, approved the email, postcard and long-form notices, and appointed Simpluris, Inc. as settlement administrator. The court had held a hearing on July 14, 2026, and asked the parties for supplemental briefing explaining the basis for the settlement before ruling.The lawsuit was filed in Alameda County Superior Court against Block, Inc., which operates Cash App, and the two banks that made Cash App Borrow loans, Square Financial Services and First Electronic Bank. The defendants moved it to federal court on July 3, 2025. The complaint alleged violations of the Military Lending Act and the Georgia Payday Loan Act.
According to the parties' supplemental brief, two technology errors between September 19, 2022 and June 12, 2023 meant that borrowers' covered-borrower status under the Military Lending Act was not always confirmed before a loan was paid out, so some covered borrowers received loans whose Military Annual Percentage Rate exceeded 36%. Block fixed the errors by June 12, 2023. The defendants deny wrongdoing and maintain that they had procedures reasonably designed to comply with the law, and the settlement is not an admission of liability.
Who Qualifies?
The settlement class is everyone who, as of May 28, 2025, took out a Cash App Borrow loan from First Electronic Bank or Square Financial Services through Cash App, was a covered borrower under the Military Lending Act when the loan was made, and had a loan with a Military Annual Percentage Rate above 36%.Covered borrowers under the Military Lending Act are active-duty servicemembers and their covered dependents. The court counted about 1,720 class members, whose loans averaged $64.12. Georgia residents are not part of the class, and no Georgia Payday Loan Act claims are released.
How Much Can You Get?
Block will pay $615,000 into a common fund. Class counsel will ask for up to $153,750 in attorneys' fees and up to $25,000 in costs, administration is estimated at $16,017, and the named plaintiff may receive a service award of up to $5,000, all subject to court approval.The court estimated that about $431,250 will remain and be divided pro rata among class members, an average of about $250 per person. That figure is an estimate, and the final amount depends on the fees and awards the court approves. No money goes back to the defendants: if checks go uncashed, a second pro rata distribution is paid to class members who cashed the first one after 150 days, and any amount too small to redistribute goes to Operation Patriot Packs, a nonprofit the court has asked the parties to explain further before final approval.
What Proof or Notice ID Is Required?
None. There is no claim form and no documentation to submit. The defendants are giving the administrator class members' contact data by October 12, 2026, and payments go to the class members identified in those records.What Is the Deadline?
There is no claim deadline because no claim is needed. The dates that matter are for class members who want out or want to object:• October 26, 2026: email and postcard notice sent.
• December 21, 2026: class counsel files the motion for fees, costs and the service award.
• January 25, 2027: requests for exclusion must be postmarked.
• February 1, 2027: written objections due.
• March 23, 2027, 9:00 a.m.: final approval hearing in Oakland. The court may move the date without further notice.
How Do You Take Action?
Class members who want to be paid do nothing. Anyone who does not want to be bound by the settlement must mail a written request for exclusion to the settlement administrator, postmarked by January 25, 2027, following the instructions in the class notice; a person who opts out receives no payment but keeps any individual claim. Objections go to the administrator in writing by February 1, 2027. Keep a current email and mailing address on file with Cash App so the notice and payment reach you.What Happens Next?
Notice goes out by October 26, 2026, and the court will decide whether to grant final approval at the March 23, 2027 hearing. Payments follow only after final approval and any appeals. If final approval is granted, the parties must file a post-distribution accounting on a date the court sets.Sources and Verification
• Bailey v. Block, Inc., No. 4:25-cv-05625 (N.D. Cal.), court docket• Order Granting Preliminary Approval of Settlement and Setting Deadlines, ECF No. 44 (September 28, 2026)
• Plaintiff's Motion for Preliminary Approval with the administrator's declaration, ECF No. 37, and Supplemental Brief, ECF No. 43
Questions
Do I need to file a claim for the Cash App Borrow military settlement?
No. There is no claim form. Every class member identified from the defendants' loan records who does not opt out will receive a pro rata payment automatically if the court grants final approval.
How much will each servicemember get from the Cash App Borrow settlement?
The court estimated an average of about $250 per class member: roughly $431,250 left after requested attorneys' fees, costs, administration and a service award, divided among about 1,720 class members. Individual payments are pro rata, and the final amount depends on what the court approves.
What is a covered borrower under the Military Lending Act?
The Military Lending Act protects active-duty servicemembers and their covered dependents, called covered borrowers. Lenders cannot charge them a Military Annual Percentage Rate above 36% on covered consumer credit, and the class here is covered borrowers whose Cash App Borrow loans went over that cap.
Are Georgia residents included in the Cash App Borrow settlement?
No. The final class definition dropped Georgia residents, so no one releases claims under the Georgia Payday Loan Act. Defense counsel told the court the defendants did not make the loans at issue to Georgia residents during the relevant period.
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Settlement Amount
$615,000
Includes up to $153,750 in attorneys' fees, up to $25,000 in costs, about $16,017 in administration and up to a $5,000 service award, all subject to court approval.
Case Title
Bailey v. Block, Inc. d/b/a Cash App, et al.
Case Number
No. 4:25-cv-05625-YGR
Court
U.S. District Court, Northern District of California
Final Approval Hearing
March 23, 2027 at 9:00 a.m.
Oakland courthouse, before Judge Yvonne Gonzalez Rogers. The court may change the date without further notice.
Administrator
Simpluris, Inc.
