Get Up to $6,500 Deposited Into Your Account: Act by June 4!

Class action lawsuits provide a means for a large number of people who have been similarly affected by a large corporation or entity to unite and assert their rights collectively. This approach often increases the chances of success compared to individual lawsuits. Recently, LoanCare, a company specializing in cybersecurity, agreed to a settlement after a two-year legal battle regarding a data breach.

Understanding Legal Repercussions of Data Breaches

In today’s digital age, it’s critical to understand the legal framework surrounding data breaches and your rights as a consumer. In the United States, several key federal laws are designed to safeguard your information and privacy:

1. Gramm-Leach Bliley Act (GLBA)
2. Fair Credit Reporting Act (FCRA)
3. FTC Act (Section 5)

GLBA is aimed at financial institutions and mandates the protection of consumer financial information. These institutions must clearly inform consumers about how their information is used and ensure robust security measures are in place. The FCRA governs credit reporting agencies, ensuring accuracy and transparency in consumer credit reports. The FTC Act requires all U.S. businesses to disclose how they use and share consumer data.

LoanCare Agrees to $5.9 Million Settlement

This month, LoanCare consented to a $5.9 million settlement in a class action lawsuit stemming from a 2023 data breach where it failed to secure sensitive consumer information adequately. The settlement is available to individuals who were notified of the data breach in November 2023.

The plaintiffs argued that the data breach could have been avoided had LoanCare implemented stronger cybersecurity measures. Affected data included consumer names, addresses, Social Security numbers, and loan details. Under the settlement, affected individuals can choose between compensation for documented losses or a standard payment.

Potential Claims Up to $6,500 for Plaintiffs

If you opt for reimbursement, you can claim up to $1,500 for general losses and an additional $5,000 for significant losses. Those who did not incur losses or choose not to seek reimbursement can receive a one-time payment of $100. Claims must be filed by June 4, with deadlines for exclusion and objections set for July 7 and August 5, respectively. A final hearing for approval of the settlement is scheduled for September 4.

General losses cover expenses such as credit monitoring services, fees, and other out-of-pocket costs, while significant losses pertain to unreimbursed damages from fraud or identity theft. Claimants must provide documentation for the losses they claim. Additionally, the settlement includes three years of identity monitoring services, featuring real-time monitoring, dark web scans, up to $1 million in identity theft insurance, access to fraud resolution specialists, and services for restoring identity. If you previously opted into 24 months of monitoring from LoanCare, an additional year will be added under this settlement to ensure comprehensive monitoring and protection against potential fraud using compromised data.