Jack Dorsey’s Block Under Investigation Over Cash App Customer Support

POLAND OUTMandatory Credit: Photo by Jakub Porzycki/NurPhoto/Shutterstock (12606907a)Cash App icon displayed on a phone screen and Cash App logo displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on November 16, 2021.
Jakub Porzycki/NurPhoto/Shutterstock / Jakub Porzycki/NurPhoto/Shutterstock

Jack Dorsey’s company Block (ex-Square) is under investigation by the Consumer Financial  Protection  Bureau  (CFPB),  as well as by Attorneys  General from multiple states, in relation to customers’ complaints about its digital wallet, Cash App.

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“We are cooperating with the CFPB and the state Attorneys General in connection with these CIDs [Civil  Investigative  Demands]. During the three months ended December 31, 2021, we accrued a non-material loss reserve in connection with the CFPB CIDs. Given the status of these matters, it is not possible to reliably determine the potential liability, if any, or reliably estimate the range of any potential liability in excess of the accrued amounts, that could result from these investigations,” Block said in a recent Securities and Exchange Commission (SEC) filing.

Cash App enables customers to send and receive money, pay, and invest in stocks and Bitcoin.

In December, just a few days after Twitter CEO Dorsey announced he was stepping down, it was revealed that his other public company will undergo a major name change. Square announced on Dec. 1, 2021, that it is changing its name to Block to acknowledge the enterprise’s growth. The name will represent the company as a corporate entity, according to a statement at the time.

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In January, the company bought  Afterpay, providing “Buy Now, Pay Later” (BNPL) functionality to customers, according to a press release.

See: How To Get Free Money on Cash App
Find: CFPB Launches Probe To Review Buy Now, Pay Later Practices

We’re excited to welcome the Afterpay team to Block and are eager to get to work,” Dorsey said in the release. “Together, we’ll deliver even better products and services for sellers and consumers while staying true to our shared purpose of making the financial system more fair and accessible to everyone.”

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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