NASHVILLE, Tenn. (WKRN) — Tennessee Attorney General Jonathan Skrmetti has joined attorneys general in 47 other states in reaching a multistate settlement with Cash App’s parent company, Block Inc., after alleging the company misled consumers about fraud protections, customer support and how money stored on the app was protected.
The settlement stems from a complaint filed in Davidson County accusing Block of unfair and deceptive business practices. Among the allegations, the state claimed the company created the impression that Cash App offered protections similar to those of a traditional bank, even though Cash App is not a bank.
“Clearly the company cannot portray itself as a deposit bank, FDIC insured or whatever code words they were using to mislead people as if their money is just as safe as if they deposited it at Wells Fargo, Citibank or Bank of America,” said Teresa Murray, consumer watchdog director for the Public Interest Research Group. “It’s just not. It’s not the same thing.”…