In today’s increasingly digital world, data breaches can have far-reaching consequences for both consumers and businesses. When sensitive personal data is compromised due to corporate negligence, affected individuals may come together through class action lawsuits to hold the responsible parties accountable. One recent example is the LoanCare data breach settlement, which offers financial compensation and identity protection services to affected customers.
Understanding the Legal Framework of Data Breaches
When companies mishandle consumer data, they risk violating several key federal privacy laws in the U.S. These laws are in place to enforce transparency and accountability regarding how personal information is collected, stored, and shared:
- Gramm-Leach-Bliley Act (GLBA): Requires financial institutions to protect consumer data and explain their data-sharing practices.
- Fair Credit Reporting Act (FCRA): Regulates how credit reporting agencies handle consumer information, ensuring accuracy and transparency.
- Federal Trade Commission Act (Section 5): Prohibits unfair or deceptive practices, including the failure to protect consumer data properly.
In the LoanCare case, plaintiffs argued that the company failed to comply with these standards, leaving sensitive data exposed to cyber threats.
LoanCare Agrees to $5.9 Million Class Action Settlement
In response to a 2023 data breach that affected thousands of consumers, LoanCare, a mortgage subservicing company, has agreed to a $5.9 million class action settlement. The breach reportedly compromised sensitive information, including:
- Full names
- Home addresses
- Social Security numbers
- Mortgage loan numbers
LoanCare began notifying affected individuals in November 2023, prompting a class action lawsuit by consumers alleging the company failed to implement reasonable cybersecurity measures. After nearly two years of litigation, the parties reached a settlement.
Who Is Eligible?
You may be eligible for compensation if:
- You received a settlement notice from LoanCare in 2023.
- Your data was compromised in the breach.
- You submit a valid claim form by June 4, 2025.
What Class Members Can Claim
The LoanCare settlement offers three options for class members:
| Claim Type | Amount Available | Requirements |
|---|---|---|
| Ordinary Losses | Up to $1,500 | Must provide receipts/documentation |
| Extraordinary Losses | Up to $5,000 | Must prove fraud/identity theft |
| Flat Payment | $100 | No documentation required |
Loss Definitions:
- Ordinary losses include costs like credit monitoring, phone bills, postage, and time spent dealing with the aftermath.
- Extraordinary losses involve financial damages from identity theft or fraud that were not reimbursed elsewhere.
Those who do not claim losses or don’t want to submit documentation can still opt for the flat $100 payment.
Important Deadlines
| Action | Deadline |
|---|---|
| Submit a Claim | June 4, 2025 |
| Opt Out of the Settlement | July 7, 2025 |
| File an Objection | August 5, 2025 |
| Final Approval Hearing | September 4, 2025 |
Additional Identity Protection Services
Beyond cash compensation, the settlement provides three years of free identity monitoring, including:
- Real-time credit monitoring
- Dark web scanning
- $1 million in identity theft insurance
- Access to fraud specialists
- Identity restoration services
Class members who already accepted 24 months of monitoring through LoanCare will receive an additional 12 months under this new agreement.
How to Claim Your Settlement
To submit a claim:
- Visit TopClassActions.com or the official settlement website.
- Choose between reimbursement or the flat $100.
- Upload any supporting documents if applicable.
- Submit your claim by June 4, 2025.
The LoanCare settlement is a reminder that companies must take cybersecurity seriously—or face legal and financial consequences. For consumers, it’s important to act promptly if you were affected. Whether you pursue a reimbursement or take the $100 flat payment, this settlement is an opportunity to seek justice and protect your identity.
FAQs
Who qualifies for the LoanCare settlement?
Anyone who received a data breach notice from LoanCare in November 2023.
How much can I get from the settlement?
Up to $6,500 for documented losses or a flat $100 without documentation.