$25M Settlement Reached in LoanDepot Data Breach Lawsuit—Millions of Customers Impacted

Online mortgage lender loanDepot has reached a $25 million settlement to resolve a class action lawsuit stemming from a data breach that compromised the personal information of 16.9 million individuals. The breach, which occurred between January 3 and January 5, 2024, exposed highly sensitive data, including names, addresses, Social Security numbers, financial account details, phone numbers, and dates of birth.

The class action lawsuit alleged that loanDepot failed to adequately protect user data, resulting in the unauthorized access and potential misuse of personal information. As part of the settlement, affected individuals can now file claims for cash payments, reimbursement of expenses, and free credit monitoring services.

Who Is Eligible for the Settlement?

Anyone whose personal information was compromised in the data breach is eligible to file a claim. LoanDepot has notified affected individuals via email or mail, but those uncertain about their eligibility can check with the official settlement administrator.

• The breach impacted current and former customers who had applied for or used loanDepot’s mortgage lending services.
• Residents of California may be eligible for additional compensation under state privacy laws.

What Compensation Can You Receive?

The settlement provides three key forms of compensation:

1. Cash Payments
   • Estimated to range between $5.30 and $70.71, depending on the number of claims filed.
2. Reimbursement for Out-of-Pocket Expenses
   • Individuals can claim up to $5,000 for documented expenses related to the breach, including:
     • Unauthorized charges on bank accounts or credit cards
     • Fees for credit reports or identity theft monitoring
     • Costs incurred for securing accounts or legal consultation
3. Free Credit Monitoring Services
   • Affected individuals are eligible for two years of free credit monitoring and identity theft protection to safeguard against fraud.
4. Additional Payments for California Residents
   • California consumers may receive extra payments between $14.90 and $149.04, depending on the number of claims submitted.

How to File a Claim?

To receive compensation, affected individuals must submit a claim form by May 27, 2025. Claims can be filed online or via mail and may require supporting documents for reimbursement claims.

Key Deadlines:

• Claim Filing Deadline: May 27, 2025
• Exclusion and Objection Deadline: April 27, 2025
• Final Approval Hearing: August 18, 2025

Security Improvements Following the Breach

As part of the settlement agreement, loanDepot has committed to investing approximately $9.34 million in enhanced cybersecurity measures. These improvements include:

• Stronger encryption protocols for customer data storage.
• Upgraded cloud security to prevent future breaches.
• Advanced threat detection systems to monitor and respond to cyber threats in real time.
• Enhanced employee training programs to strengthen internal security practices.

LoanDepot has assured customers that it is taking proactive steps to prevent future incidents, though cybersecurity experts warn that financial institutions remain prime targets for hackers.

What Should Affected Customers Do Now?

If you believe you were affected by the loanDepot data breach, here are the recommended next steps:

1. Check Your Notification
   • LoanDepot has sent direct notifications to impacted individuals.
   • If you didn’t receive an email or letter but believe you were affected, visit the settlement website to check eligibility.
2. File a Claim Before May 27, 2025
   • Submit your claim online or by mail with necessary documentation.
3. Monitor Your Credit and Accounts
   • Sign up for the free credit monitoring service provided through the settlement.
   • Regularly check your bank statements and credit report for suspicious activity.
4. Consider a Credit Freeze or Fraud Alert
   • A credit freeze can prevent new accounts from being opened in your name.
   • A fraud alert notifies lenders to take extra precautions before approving credit applications.

For information on protecting your identity, visit the Federal Trade Commission (FTC): www.identitytheft.gov

Final Thoughts

The loanDepot data breach settlement marks a significant legal resolution for one of the largest cybersecurity incidents in the mortgage lending industry. While the $25 million payout provides some relief to affected customers, it serves as another reminder of the growing risks of data breaches in the financial sector.

If you were impacted, be sure to file your claim before the deadline and take necessary steps to protect your personal information. For more details, visit:

• Settlement Website
• Federal Trade Commission (FTC) Consumer Protection: www.ftc.gov
• Consumer Financial Protection Bureau (CFPB): www.consumerfinance.gov

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.