LoanDepot EFTA Settlement: $1.025M

Individuals in the U.S. whose bank accounts were debited on a recurring basis by LoanDepot without being provided a copy of the authorizatio. Payments must have occurred between Sept. 21, 2021, and Oct. 6, 2023

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LoanDepot has agreed to pay $1.025 million to settle claims that it violated the federal Electronic Funds Transfer Act (EFTA) by automatically withdrawing funds from customers’ bank accounts without providing a copy of their authorization.

The class action lawsuit alleges that LoanDepot improperly took recurring payments from customers without complying with EFTA requirements. Under federal law, financial institutions must obtain written authorization for preauthorized electronic fund transfers and provide consumers with a copy of this authorization.

LoanDepot is a national mortgage lender that offers home loans, refinancing, and home equity options.

While denying any wrongdoing, LoanDepot agreed to the settlement to resolve the claims and compensate affected customers.

Settlement Benefits

• Pro Rata Cash Payment – Class members will receive a share of the settlement fund, with larger payouts going to those who experienced more frequent unauthorized debits.
• No Payment Estimates Available – Exact amounts will depend on how many valid claims are submitted.

If you had money withdrawn from your bank account by LoanDepot without proper authorization, you may be entitled to compensation. Check your eligibility and submit your claim before the deadline.