If you’re an active-duty servicemember, a Guard or Reserve member, or a military dependent who borrowed through Cash App Borrow, a new class action settlement may put a small cash payment in your pocket — and you probably don’t have to lift a finger to get it. Block, Inc. (the company behind Cash App) has agreed to a $615,000 settlement to resolve claims that certain Cash App Borrow loans issued to military borrowers carried finance charges above what federal law allows.
Here’s the plain-English breakdown: who qualifies, how much you might receive, what the official BlockMLASettlement.com website is for, and why the March 23, 2027 court date matters.
What the lawsuit is about
The case — filed as Bailey v. Block, Inc., et al. in the U.S. District Court for the Northern District of California (case no. 4:25-cv-05625) — alleges that Block, together with Square Financial Services and First Electronic Bank, extended Cash App Borrow loans to “covered borrowers” under the federal Military Lending Act (MLA) at costs that exceeded the law’s limits.
The MLA was written to protect military families from predatory lending. One of its core rules caps the Military Annual Percentage Rate (MAPR) — a broad measure of a loan’s cost that folds in interest plus most fees — at 36% for active-duty servicemembers and their dependents. The complaint claims some Cash App Borrow loans to these borrowers blew past that 36% ceiling, and also raised claims under Georgia’s lending statutes regarding how loan repayment was secured. Block denies wrongdoing; settling avoids the cost and uncertainty of continued litigation.
Who qualifies for a payment
You’re a member of the settlement class if all of the following are true:
- You obtained a Cash App Borrow loan from First Electronic Bank or Square Financial Services through Block’s Cash App platform, on or before May 28, 2025.
- At the time you took the loan, you were a “covered borrower” under the MLA — meaning an active-duty member of the Armed Forces, a member serving on Active Guard or Reserve duty, or a dependent of such a member.
- The MAPR on your Cash App Borrow loan exceeded 36%.
Court filings put the class at roughly 1,720 borrowers. Because the eligibility hinges on military status and the specific loan math, the parties have already identified class members from Block’s records — which is why, for most people, no claim form is required (more on that below).
How much is the payout?
The settlement fund is $615,000. After court-approved costs, eligible class members are estimated to receive about $58.95 for each qualifying Cash App Borrow loan. If you took out more than one qualifying loan, you’d receive that amount per loan.
Worked examples
- One qualifying loan: roughly 1 × $58.95 ≈ $58.95.
- Three qualifying loans: roughly 3 × $58.95 ≈ $176.85.
- A loan that stayed at or under a 36% MAPR: $0 — it doesn’t meet the eligibility test, even if you’re an active-duty servicemember.
The $58.95 figure is an estimate. Final per-loan amounts can shift slightly depending on administration costs and the exact count of qualifying loans approved by the court.
Key facts at a glance
| Detail | What to know |
|---|---|
| Settlement total | $615,000 |
| Estimated payout | ~$58.95 per qualifying loan |
| Class size | ~1,720 borrowers |
| Who qualifies | Covered MLA borrowers whose Cash App Borrow loan MAPR exceeded 36% |
| Loan cutoff date | Loans obtained as of May 28, 2025 |
| Claim form required? | No — payments are automatic to identified class members |
| Official website | BlockMLASettlement.com |
| Final approval hearing | March 23, 2027 |
| Case | Bailey v. Block, Inc., N.D. Cal., No. 4:25-cv-05625 |
Do you need to file a claim?
Generally, no. Unlike many consumer settlements, this one does not require class members to submit a claim form to get paid. Because the class was drawn from Block’s own loan and servicing records, the administrator already knows who the eligible borrowers are.
What you should do is make sure the administrator can reach you. At BlockMLASettlement.com, class members can update their mailing address and choose an electronic payment option instead of waiting on a paper check. If you’ve moved, changed banks, or left the service since taking your loan, updating your contact and payment details is the single most useful step you can take.
What the March 23, 2027 hearing means
A class action settlement isn’t final when the parties agree to it — a judge has to sign off. The court granted preliminary approval in late September 2026, which authorized notices to be sent and the settlement website to go live. The final approval hearing is set for March 23, 2027.
At that hearing, the judge will weigh whether the deal is fair, reasonable, and adequate before giving final approval. Practically, that means:
- Payments don’t go out until after final approval — and, if anyone appeals, until those appeals are resolved. Don’t expect money to land the day after the hearing.
- You have rights before the deadline. Class members can typically object to the terms or exclude themselves (“opt out”) if they’d rather keep the right to sue on their own. Opting out means giving up your settlement payment.
- Deadlines cluster around the hearing. The window to update your address and select electronic payment runs up to the hearing date, so confirm the exact deadlines listed on BlockMLASettlement.com rather than assuming.
If the court grants final approval and no appeals hold things up, the administrator distributes payments to eligible class members in the weeks or months that follow.
How to protect yourself from scams
Settlement notices attract copycats. Only trust the court-authorized site, BlockMLASettlement.com. Legitimate administrators in a no-claim settlement like this one will never ask you to pay a fee to release your money, and they won’t need your full Social Security number or banking login over an unsolicited call or text. When in doubt, go directly to the official website rather than clicking links in messages.
Frequently Asked Questions
I was active-duty when I used Cash App Borrow — am I automatically in?
Not automatically. You also need a loan where the MAPR exceeded 36% and that was obtained as of May 28, 2025. Military status alone isn’t enough; the loan has to meet the cost threshold that the lawsuit targets.
Do I have to file a claim to get my $58.95?
No. For this settlement, eligible class members identified from Block’s records are paid automatically. The most important thing you can do is update your address and pick an electronic payment at BlockMLASettlement.com so your payment isn’t delayed or returned.
When will I actually get paid?
Not before the March 23, 2027 final approval hearing. Payments go out only after the court grants final approval and any appeals are resolved, so the timeline can extend beyond the hearing date.
What if I took out several Cash App Borrow loans?
The estimated ~$58.95 is paid per qualifying loan. If you had multiple loans that each met the eligibility test, your total would be roughly $58.95 multiplied by the number of qualifying loans.
The bottom line
If you’re a covered servicemember or military dependent who borrowed through Cash App Borrow and your loan’s cost topped a 36% MAPR, this settlement is designed to send you a modest automatic payment — about $58.95 per qualifying loan. You don’t need to file a claim, but you should confirm your contact and payment details at BlockMLASettlement.com and keep an eye on the March 23, 2027 final approval hearing, after which payments can begin. A few minutes updating your address now is the surest way to make sure your check (or faster electronic payment) actually reaches you.
WalletWisp is an independent, informational resource and is not affiliated with Block, Cash App, or the settlement administrator. This article is for general information only and is not financial or legal advice; for official terms and deadlines, consult BlockMLASettlement.com.
