Thorne v. Square, Inc. and Sutton Bank: Allegations of Cash App Fraud

On October 23, 2020, lawyers from the Financial Justice Initiative, a joint project of Terrell Marshall Law Group and Schlanger Law Group, filed a class action lawsuit on behalf of Cash App customers nationwide who have reported fraudulent charges. The lawsuit names the creator of Cash App—Square, Inc. —as a defendant. The lawsuit also names Sutton Bank as a defendant because Sutton Bank partners with Square to provide Cash App users with a Cash App bank card known as the “Cash Card.” The lawsuit is brought under the Electronic Funds Transfer Act, or EFTA, and New York law.

Plaintiff Deeann Thorne’s story is all too common: while using her Cash App account to purchase clothing, Ms. Thorne was defrauded by an unknown perpetrator who posed as a legitimate vendor and withdrew roughly $3,000 from her account. The lawsuit alleges that when Ms. Thorne disputed the charges, Square and Sutton Bank did not follow the law in a variety of ways. For example, defendants required Ms. Thorne to provide extensive information before they would even open or investigate her dispute when the law requires only certain basic information before a creditor is required to investigate.

The lawsuit also alleges that Square and Sutton deny identity theft claims by requiring consumers to provide more proof than is required under the law. The lawsuit further alleges that Square and Sutton failed to provide Ms. Thorne and other victims with an explanation for their decision to deny victims’ claims, as required under the EFTA. And finally, the lawsuit alleges that Square and Sutton failed to provide required disclosures about customers’ legal rights.

Cash App is an extremely popular app, with tens of millions of users. And fraud on the Cash App platform – including fraud by con artists claiming to be vendors or Square customer service representatives – has been widely reported. Because the problem is so pervasive, making sure that Square and Sutton Bank provide proper and adequate dispute procedures is critically important and impacts thousands of people.

The Financial Justice Initiative, a joint project of the consumer protection attorneys at Seattle-based Terrell Marshall Law Group and New York/New Jersey-based Schlanger Law Group, is honored to work every day on behalf of victims of identity theft, fraud, and other marketplace misconduct. Through this class action lawsuit and other litigation filed around the country, the lawyers at our firms’ work to hold powerful companies accountable for their unlawful conduct.

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