Purpose Financial Data Breach Settlement: $7.75M

Consumers who received a data breach notification letter from Purpose Financial indicating their names and Social Security numbers were included in files accessed during the February 2023 breach.

Documentation of expenses such as bank or credit card statements, invoices, receipts, or bills, along with a description of how the losses are connected to the breach.

Purpose Financial, formerly operating as Advance America, has agreed to pay $7.75 million to settle claims that it failed to safeguard consumer data during a cyberattack in February 2023.

According to the lawsuit, inadequate cybersecurity practices allowed unauthorized access to sensitive personal information, including Social Security numbers. Affected consumers later received breach notification letters confirming the exposure.

Though Purpose Financial denies any wrongdoing, it chose to resolve the matter through a class action settlement.

Eligible class members can claim up to $5,000 in out-of-pocket reimbursement for documented losses such as identity theft, fraudulent charges, and professional fees. These payments require clear supporting documentation.

In addition to reimbursement, all claimants may receive a pro rata cash payment estimated at $50. This amount may increase or decrease depending on how many valid claims are filed. California residents are eligible for an additional $50 payment.

To qualify for compensation, claim forms must be submitted by February 2, 2026. The deadline to request exclusion or objection is January 2, 2026, and the final approval hearing is scheduled for March 17, 2026.