LoanDepot Data Breach Settlement Are You Entitled to Up to $5,000?
A major data breach settlement is making waves in the financial sector, offering potential compensation possibly up to $5,000 to millions affected. This comes after LoanDepot, a leading online mortgage lender, suffered a significant cyberattack that compromised the sensitive information of approximately 16.9 million customers. Now, a $25 million class-action settlement has been reached, and the window for filing claims is officially open.
If you received a notification from LoanDepot regarding this breach, you may already be eligible for a cash payout, or other valuable benefits offered through the settlement.
What Happened?
The cyberattack occurred over a short period, between January 3 and January 5, 2024. However, its impact was far-reaching. The compromised data included highly sensitive information such as:
- Social Security numbers
- Email addresses
- Account details
- And more
Consumers allege that LoanDepot failed to adequately secure its digital infrastructure and properly train its personnel to prevent such a breach, leaving millions vulnerable to identity theft and fraud.
The $25 Million Data Breach Settlement: What You Need to Know
While LoanDepot denies any wrongdoing, the company has agreed to a $25 million settlement to resolve the allegations and avoid the drawn-out costs and uncertainties of ongoing litigation. This settlement is designed to provide relief to the affected individuals through a variety of compensation options.
If you believe you were impacted by the LoanDepot data breach, here’s a breakdown of what you should know:
Compensation Options:
- Cash Payments: Eligible class members can receive a base cash payment estimated to be between $5.30 and $70.71, depending on the total number of claims filed. This amount is intended to compensate for inconvenience and the increased risk of identity theft.
- Additional Compensation for California Residents: If you are a resident of California, you may be entitled to additional compensation under the California Consumer Privacy Act (CCPA). California residents could receive bonus payments ranging from an estimated $14.90 to $149.04, recognizing the stronger privacy protections afforded by state law.
- Reimbursement for Out-of-Pocket Losses: Victims who incurred actual financial losses directly related to the breach, such as fraud losses, identity theft damages, or fees for credit freezes, can claim reimbursement of up to $5,000. Crucially, these expenses must be well-documented and clearly attributable to the LoanDepot data breach. Examples of reimbursable expenses include:
- Costs associated with freezing or unfreezing credit reports.
- Expenses related to identity theft protection services.
- Unreimbursed fraud losses stemming from the misuse of your compromised data.
- Fees for professional services used to address and resolve identity theft issues.
How to File a Claim in the Data Breach Settlement:
The deadline to file a claim is likely approaching quickly. To determine your eligibility and file a claim, you should:
- Locate your notice from LoanDepot: This notice contains crucial information about your rights and how to participate in the settlement. If you believe you were affected but did not receive a notice, you should still investigate your options.
- Visit the official settlement website: (This information will be available once the official settlement website is launched). The website will provide detailed instructions on how to file a claim, what documentation is required, and deadlines for submission.
- Gather documentation: If you are claiming reimbursement for out-of-pocket expenses, you’ll need to gather all relevant documentation, such as receipts, bank statements, and credit reports.
- File your claim before the deadline: Missing the deadline could mean forfeiting your right to compensation under the settlement.
Protecting Yourself Going Forward:
Even if you participate in the settlement, it’s crucial to take ongoing steps to protect yourself from identity theft and fraud:
- Monitor your credit reports regularly: Look for any suspicious activity or unauthorized accounts.
- Consider placing a credit freeze: This restricts access to your credit report, making it harder for identity thieves to open new accounts in your name.
- Be vigilant about phishing scams: Be wary of suspicious emails, text messages, or phone calls asking for personal information.
- Update your passwords: Use strong, unique passwords for all of your online accounts.
The LoanDepot data breach is a stark reminder of the importance of data security and the risks associated with online transactions. By understanding your rights and taking proactive steps to protect your information, you can mitigate the potential harm caused by such events. Don’t delay investigate your eligibility for the settlement.
