LoanCare agreed to a multimillion-dollar settlement to resolve allegations that it failed to prevent a 2023 data breach.
The breach compromised data, including sensitive consumer information.
Individuals who received a data breach notice from LoanCare will now be eligible under the settlement agreement.
This notice informed customers that their information had been compromised in a cybersecurity incident on November 19, 2023.
Plaintiffs argue that the firm could have prevented the breach with reasonable cybersecurity measures.
However, due to the alleged negligence, the breach exposed sensitive information such as names, addresses, Social Security numbers, and loan numbers.
LoanCare is a national subservice for mortgage loans.
To resolve the allegations, the company agreed to a $5.9 million class action settlement, rather than admitting any wrongdoing.
The settlement allows class members to receive reimbursement for documented expenses or losses, as well as a flat-rate payment.
The reimbursement payments cover up to $1,500 and are available for ordinary losses.
These include credit monitoring services, fees, communication costs, and other unreimbursed expenses.
However, class members may be able to recover up to $5,000 in “extraordinary losses”.
Unreimbursed fraud and identity theft damages are examples of high-stakes losses.
Both of these claim categories must be documented, and evidence should be provided.
Class members who did not suffer any specific losses as a result of the data breach may seek a flat-rate payment.
This flat-rate payment will total $100.
These payments can be increased or decreased on a pro rata basis.
All class members are also entitled to three years of identity monitoring services.
These services include real-time credit monitoring, dark web scanning, identity theft insurance coverage of up to $1 million, access to fraud specialists, and identity theft restoration.
Class members who previously chose to receive 24 months of identity monitoring services from LoanCare will now receive only one year of identity monitoring as part of this settlement.
Those who want to exclude must do so by July 7, while those who want to object have until August 5.
The final deadline for submitting a valid claim and receiving benefits is June 4.