Jakub Porzycki/NurPhoto/Shutterstock / Jakub Porzycki/NurPhoto/Shutterstock
Jack Dorsey’s company Block (ex-Square) is being investigated by the Consumer Financial Protection Bureau (CFPB), as well as several state attorneys general, over customer complaints about its portfolio digital, Cash App.
See: Jack Dorsey, Elon Musk and 21 other CEOs who changed the way we live
Find: Cash App vs. Venmo: Which is better?
“We are cooperating with the CFPB and state attorneys general on these CIDs [Civil Investigative Demands]. During the three months ended December 31, 2021, we made a provision for immaterial losses in connection with CFPB CIDs. Given the state of these matters, it is not possible to reliably determine potential liability, if any, or to reliably estimate the range of any potential liability in excess of accrued amounts, which may result of these investigations,” Block said in a recent filing with the Securities and Exchange Commission (SEC).
Cash App allows customers to send and receive money, pay and invest in stocks and bitcoins.
In December, just days after Twitter CEO Dorsey announced he was stepping down, it was revealed that his other public company was going to undergo a major name change. Square announced on December 1, 2021 that it was changing its name to Block to recognize the company’s growth. The name will represent the company as a legal entity, according to a statement at the time.
In January, the company purchased Afterpay, offering customers “Buy Now, Pay Later” (BNPL) functionality, according to a press release.
See: How to Get Free Cash on Cash App
Find: CFPB launches probe to examine buy-it-now and pay-later practices
“We are delighted to welcome the Afterpay team to Block and look forward to getting to work,” Dorsey said in the statement. “Together, we will provide even better products and services to sellers and consumers while remaining true to our common goal of making the financial system fairer and more accessible to everyone.”
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