Deadline to Claim $6,500 is Today — Here’s How to Qualify for the Data Breach Settlement

A recent class action lawsuit and subsequent $5.9 million settlement involving LoanCare has once again placed the spotlight on the growing threat of data breaches and the responsibilities corporations carry in protecting customer data. This case stems from a cybersecurity attack in late 2023 that exposed highly sensitive personal information, raising concerns about how companies handle digital security and what affected consumers are entitled to in return.

How Data Breaches Happen — And Why They Matter

A data breach occurs when unauthorized individuals gain access to private or sensitive information. This can include everything from Social Security numbers and bank details to proprietary corporate records. When such data is exposed, the ripple effects can be devastating — from financial fraud and identity theft to long-term privacy violations.

There are several common ways data breaches occur:

Breach Method	Description
Password Guessing	Attackers try common or known passwords to gain unauthorized access.
Phishing	Deceptive emails trick users into revealing sensitive information.
Ransomware	Malicious software locks users out of systems until a ransom is paid.

Understanding how these breaches occur helps individuals and businesses better defend against them — though in the case of LoanCare, those defenses appear to have fallen short.

The LoanCare Breach and Lawsuit Details

The data breach in question occurred on November 19, 2023, and targeted LoanCare’s systems. According to the plaintiffs in the lawsuit, the company failed to implement reasonable cybersecurity safeguards. As a result, attackers were able to access sensitive customer information, including:

• Full names
• Addresses
• Social Security numbers
• Loan account numbers

While LoanCare did not admit to any wrongdoing, it agreed to settle the case for $5.9 million.

What Affected Consumers Can Claim

Consumers affected by the breach can claim compensation in three main ways, depending on their circumstances:

1. Flat-Rate Payment: $100

This is for individuals who:

• Have not experienced any financial losses from the breach, or
• Do not wish to go through the process of submitting documentation for a reimbursement claim.

This amount may be adjusted up or down based on the number of valid claims filed (pro rata).

2. Reimbursement for Ordinary Losses: Up to $1,500

These include documented expenses such as:

• Bank fees
• Phone or internet charges related to resolving the breach
• Costs of credit monitoring or identity protection services

3. Reimbursement for Extraordinary Losses: Up to $5,000

These are more serious losses and include:

• Identity theft
• Unreimbursed fraudulent charges
• Other significant out-of-pocket losses

All claims must be supported by documentation and submitted by the deadline set in the settlement terms.

Bonus: Identity Monitoring Services

Eligible class members can also receive up to three years of identity monitoring, including:

• Real-time credit monitoring
• Dark web scans
• Access to fraud resolution experts
• Identity theft insurance (up to $1 million)
• Restoration services

If you already received 24 months of monitoring previously, you’re only eligible for one additional year.

What to Do If You’re Eligible

To claim your benefits, visit Top Class Actions and follow the instructions to file. You must:

• Confirm your eligibility (based on the breach notification you may have received)
• Submit your claim with supporting documents if applying for reimbursements
• File by the deadline to avoid losing out on compensation

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