In recent months, many Cash App users have received a check for approximately $147. Initially, people didn’t understand why they received this money. It turns out this money was part of a $12.5 million class-action settlement stemming from a legal case involving Cash App.
It became commonly known as the “147 Cash App Check” because a large number of people received approximately $147. However, not everyone received the same amount. Some received slightly more or less, but $147 was the most common amount.
This settlement was for users who were harmed by certain fees, transactions, or services related to Cash App.
The Full Story of the $12.5 Million Class Action Settlement
The case began when several Cash App users alleged that the company charged improper fees in some instances, failed to process transactions correctly, or misrepresented its terms of service.
These users collectively filed a class-action lawsuit in court. This meant that thousands of people were suing the company together.
After a lengthy legal process, Cash App agreed to a $12.5 million settlement without admitting any wrongdoing. This money was paid to resolve the case and provide some compensation to affected users.
Where Did the $12.5 Million Go?
It’s important to understand that the entire $12.5 million was not distributed directly to individuals. First, several necessary expenses were deducted, such as:
- Lawyers’ fees
- Court and case-related expenses
- Fees for the company processing the claims (Settlement Administrator)
- Costs for sending notices and running the system
The remaining money was then distributed among eligible users. This is why most people received approximately $147.
Who Was Eligible for the 147 Cash App Checks?
Not every Cash App user received this check. Only those who met the following criteria were eligible:
- They used Cash App at the time the alleged issue occurred.
- They did not opt out of the class action.
- If a claim form was required, they submitted a valid claim on time.
Specific eligibility details are included in the notice provided with each settlement or on the official website.
How the Money Was Determined
The amount each person received was determined by a formula:
- First, the net settlement amount was calculated.
- Then, the total number of people who filed valid claims was determined.
- That amount was divided among all eligible claimants.
If 50,000 people filed valid claims and the net fund was approximately $7.35 million, each person would receive an average of about $147. This is why that amount became so common.
How to Cash Your $147 Cash App Check
If you received this check, follow these steps to cash it safely:
- First, verify the name of the settlement administrator on the check against the official website.
- Sign the back of the check.
- Deposit it at your bank, through your mobile banking app, or with a check cashing service.
- Keep a photo or copy of the check for your records.
If any documentation is requested, submit it promptly.
What to Do If You Didn’t Receive a Check but Are Eligible
In this case, you should:
- Visit the official settlement website.
- Check the claim status or the “Missing Payment” section.
- Contact the Settlement Administrator.
- Resubmit your claim if necessary.
Taking timely action is crucial, as everything in a settlement has a deadline.
Important Dates and Deadlines
Every class action settlement includes these stages:
- Notice issued
- Claim submission deadline
- Opt-out deadline
- Final court approval
- Checks mailed
- Final date to cash checks
If you do not cash your check, the amount is returned to the settlement fund.
Is This Money Taxable?
This depends on the reason the money was received. Some settlements are taxable, and some are not. Therefore, it’s best to inform your tax advisor about this check when filing your taxes.
Real-Life Example
A freelancer named Maria received a $147 Cash App settlement check. She verified the check through the official website and then deposited it using her bank’s mobile app. The money was in her account within two days.
She kept copies of the email, the check, and her bank records to avoid any issues during tax season.
Conclusion
The $147 Cash App checks are actually part of a larger $12.5 million class-action settlement. This money is being distributed to provide relief to users who were negatively impacted by Cash App’s services.
If you received this check, deposit it properly, keep all documentation, and contact the settlement administrator if needed. This is money you are legally entitled to, so don’t ignore it.
FAQs
Q. What are 147 Cash App checks?
A. They are settlement payments sent to eligible Cash App users as part of a $12.5 million class action case.
Q. Why did many people receive $147?
A. $147 was a common payout amount after the settlement money was divided among approved claimants.
Q. Who was eligible to get this payment?
A. Cash App users who met the settlement criteria and submitted a valid claim or were included in the class.
Q. How can I cash my settlement check?
A. You can deposit it through your bank, mobile banking app, or a check-cashing service after signing the back.
Q. Is the 147 Cash App payment taxable?
A. It may be taxable depending on your situation, so it is best to check with a tax professional.
