loanDepot EFTA Settlement: $1.025M

All individuals in the United States whose bank accounts were debited on a recurring basis by loanDepot.com, LLC without receiving a copy of the authorization to make a preauthorized electronic funds transfer during the period between Sept. 21, 2021, and Oct. 6, 2023.

No proof of purchase is required. Payments will be distributed to class members who meet eligibility requirements and submit valid claims.

loanDepot.com, LLC has agreed to a $1.025 million settlement to resolve claims that it violated the Electronic Funds Transfer Act (EFTA) and California’s Unfair Competition Law (UCL) by debiting consumers’ bank accounts on a recurring basis without providing copies of the written authorization.

Plaintiffs allege loanDepot’s practices violated federal and state laws, causing financial harm to consumers. While loanDepot denies these claims and has not admitted wrongdoing, it agreed to settle the lawsuit to avoid the costs and risks of prolonged litigation.

The settlement fund of $1.025 million will cover:

• Incentive Awards: $20,000 total for the two class representatives.
• Attorneys’ Fees: Up to $341,632.50 (33.33% of the settlement fund).
• Administrative Costs: Capped at $190,000.
• Class Member Payments: The remaining $458,367.50 will be distributed pro rata among eligible class members.

The amount each claimant will receive depends on the total number of claims filed. Payments will be made via check, and unclaimed funds will be donated to Habitat for Humanity of Orange County.