Americans who were affected by the LoanCare data breach now have a shot at payouts between $100 and $6,500, and all it takes is a bill to get started.
LoanCare, a major mortgage subservicer, is settling a $5.9 million class action lawsuit after a 2023 data breach exposed sensitive customer data. If you received a breach notification from them around November 19, 2023, you’re likely eligible to cash in on this cybersecurity settlement.
The class action claims that LoanCare failed to implement adequate cybersecurity, leading to the leak of customers’ names, addresses, Social Security numbers, and loan numbers. Even though the company hasn’t admitted to any wrongdoing, they’ve agreed to the payout to resolve the allegations. According to plaintiffs, LoanCare’s negligence made the breach possible, and the exposed info could lead to fraud or identity theft.
Now, under the terms of the settlement, affected individuals can claim different levels of compensation based on the losses they experienced. If you’ve got documents proving fraud, identity theft, or related out-of-pocket expenses like bank fees or monitoring costs, you could get up to $1,500 for ordinary losses and as much as $5,000 for more serious damages. But keep in mind, you’ll need the paperwork to back those claims.
Can’t prove any losses? No worries. You’re still eligible for a flat $100 payment, and that amount could even increase depending on how many people file. It works on a pro rata basis, so if fewer people submit claims, everyone gets a bigger share. But if the claims flood in, the payments will be smaller.
And there’s more, every claimant, whether they submit documents or not, will receive up to three years of identity protection. That includes real-time credit monitoring, dark web scanning, and identity theft insurance up to $1 million. However, if you already accepted a previous offer from LoanCare for 24 months of monitoring, you’ll only get one additional year.
If you think you qualify, don’t drag your feet. The claim form must be submitted by June 4, 2025. Other deadlines to keep in mind are July 7, 2025, for opting out of the settlement, and August 5, 2025, for filing an objection. The final approval hearing is scheduled for September 4, 2025.
So here’s the bottom line: if LoanCare told you that your data might have been compromised, that’s enough. Even if nothing bad happened, you could still walk away with some cash and identity protection. All you need is that notice or a related bill to show you were part of the breach group.
