There are only a few days left for certain Americans to qualify for payments that could be worth several thousand dollars. These payments are not coming from the government but from a major class action settlement involving a financial services company. Many eligible consumers may miss out simply because they are unaware of the deadline or unsure about how the process works.
Background of the Purpose Financial Data Breach
The settlement stems from a class action lawsuit filed against Purpose Financial, previously known as Advance America. The company provides payday loans, cash advances, and other short-term lending services. According to the lawsuit, Purpose Financial failed to properly protect customer data during a cyberattack that occurred in February 2023. As a result, sensitive personal information, including names and Social Security numbers, was allegedly exposed.
Although Purpose Financial has not admitted wrongdoing, it agreed to a $7.75 million settlement to resolve the claims and avoid prolonged litigation. The settlement is intended to compensate affected customers whose information may have been compromised during the breach.
Who Is Eligible for a Settlement Payment
Eligibility is limited to individuals who received a data breach notification letter from Purpose Financial. This letter informed customers that their personal information may have been involved in the 2023 incident. The notice also contains a Unique ID and PIN, which are required to submit a claim.
People who no longer have their notification letter can still participate. They must contact the settlement administrator and provide their full name and mailing address to retrieve their Unique ID and PIN. This step must be completed before the claim deadline.
Claim Deadline and How to File
The deadline to submit a claim is February 2, 2026, and it is approaching quickly. Claims can be filed online through the official settlement website or by downloading and mailing a paper form to the address listed on the site. The deadlines for exclusion and objection have already passed, meaning eligible consumers must now focus on filing their claims if they want to receive payment.
How Much Money Claimants Can Receive
Payment amounts depend on individual circumstances. Claimants who can provide proof of out-of-pocket losses related to identity theft, credit monitoring, or professional fees may receive up to $5,000. Those without documentation are still eligible for a pro-rata cash payment of about $50, which may vary depending on the total number of claims filed.
California residents receive an additional automatic $50 payment, bringing the potential maximum payout to approximately $5,100.
When Payments Will Be Issued
Payments are expected to be sent sometime in 2026, assuming the settlement receives final court approval. A final approval hearing is scheduled for March 17. Once approved, funds will be distributed to approved claimants.
Why This Matters
Class action settlements like this one offer consumers a chance to receive compensation without filing individual lawsuits. However, strict deadlines and documentation requirements mean many people miss out. Acting quickly and relying only on official settlement channels is essential.
Disclaimer:
This article is for informational purposes only and does not provide legal or financial advice. Settlement terms, deadlines, and payment amounts are subject to court approval and official settlement rules. Individuals should review the official settlement website or consult a qualified professional for guidance specific to their situation.
