In recent months, many Cash App users were surprised to receive a check for approximately $147. While the amount seemed random at first, it is part of a $12.5 million class-action settlement involving Cash App. This payout has become widely known as the “147 Cash App Check,” though the actual amounts varied slightly among recipients. Understanding why this payment was issued, who qualifies, and how to claim it is essential for anyone involved.
The Background of the $12.5 Million Settlement
The class-action lawsuit arose when several Cash App users alleged that the company improperly charged fees, misprocessed transactions, or misrepresented service terms. Thousands of users collectively filed a lawsuit, seeking compensation for these alleged issues.
After a lengthy legal process, Cash App agreed to a $12.5 million settlement to resolve the claims, without admitting any wrongdoing. This settlement was designed to reimburse affected users and bring closure to the case.
How the Settlement Funds Were Distributed
It’s important to note that the full $12.5 million was not distributed directly to users. Several costs were deducted first, including:
- Lawyers’ fees and legal expenses
- Court and case administration costs
- Fees for the claims processing company (Settlement Administrator)
- Costs for issuing notices and maintaining the settlement system
The remaining funds were then distributed to eligible users, which is why the average check amount became approximately $147.
Who Was Eligible for the 147 Cash App Checks?
Not every Cash App user received a check. Eligibility was limited to those who:
- Used Cash App during the period in which the alleged issues occurred
- Did not opt out of the class action
- Submitted a valid claim form on time, if required
Specific eligibility details were provided in settlement notices or on the official settlement website. Users who met these criteria became part of the approved distribution group.
How the Payout Amount Was Calculated
The settlement payout per individual was determined using a simple formula:
- Calculate the net settlement amount after expenses.
- Count the total number of eligible claimants.
- Divide the net amount by the number of claimants.
For example, if 50,000 users submitted valid claims and the net settlement fund was approximately $7.35 million, each person would receive roughly $147. This calculation explains why $147 became the most common amount received.
How to Cash Your 147 Cash App Check
If you received a settlement check, follow these steps to ensure a safe and smooth deposit:
- Verify the settlement administrator’s name on the check against the official settlement website.
- Sign the back of the check.
- Deposit it at your bank, through a mobile banking app, or via a check-cashing service.
- Keep a copy or photo of the check for your records.
- Submit any additional documentation requested promptly.
What to Do If You Haven’t Received a Check
Eligible users who did not receive a check should:
- Visit the official settlement website.
- Check the status of your claim under the “Missing Payment” section.
- Contact the Settlement Administrator for guidance.
- Resubmit your claim if necessary.
Timely action is crucial because settlements typically include firm deadlines for claims and cashing checks.
Important Dates and Deadlines
Class action settlements follow a structured timeline, including:
- Notice issued to potential claimants
- Deadline for claim submission
- Opt-out deadline
- Final court approval
- Checks mailed
- Final date to cash checks
Failure to cash a check by the final deadline can result in the funds being returned to the settlement pool.
Are Settlement Payments Taxable?
Whether this money is taxable depends on the nature of the settlement. Some class-action payouts are considered taxable income, while others are not. Recipients should consult a tax professional when filing their taxes to ensure compliance.
Real-Life Example
Maria, a freelance worker, received her $147 Cash App settlement check in late December. She verified the check through the official settlement website and deposited it using her bank’s mobile app. The funds appeared in her account within two days. Maria also kept copies of the email, check, and bank records to avoid issues during tax season.
Conclusion
The $147 Cash App checks are part of a broader $12.5 million class-action settlement designed to compensate users negatively impacted by Cash App’s services. Recipients should deposit the funds promptly, retain documentation, and contact the Settlement Administrator if needed. This payment is legally entitled to eligible users and represents compensation for past grievances.
FAQs
Q1: What are 147 Cash App checks?
A1: They are settlement payments sent to eligible Cash App users as part of a $12.5 million class-action lawsuit.
Q2: Why did many people receive $147?
A2: After settlement expenses were deducted, the remaining funds were divided among claimants, resulting in an average payout of $147.
Q3: Who was eligible for the payment?
A3: Users who were active during the relevant period, did not opt out, and submitted valid claims were eligible.
Q4: How can I cash my settlement check?
A4: Sign the check and deposit it via bank, mobile app, or check-cashing service.
Q5: Is the 147 Cash App payment taxable?
A5: It may be taxable depending on your circumstances, so consult a tax professional for guidance.