One way for a big number of people who have a similar grievance or who have been wronged similarly by a huge company or institution to unite as a collective power to fight for justice and gain money in their bank accounts is through class action lawsuits.
Plaintiffs have a better chance of winning when this occurs than if they fought their case alone. After two years of litigation over data leaks, cybersecurity business LoanCare recently reached a deal with plaintiffs.
The laws pertaining to client data breaches
It is more important than ever to comprehend the legal ramifications of data breaches and your rights as a consumer in the digital age.
The following are the main federal laws in the US that safeguard your privacy and information when it comes to data security:
- Gramm-Leach Bliley Act (GLBA)
- Fair Credit Reporting Act (FCRA)
- FTC Act (Section 5)
The GLBA, which is applicable to financial institutions, was created to safeguard the financial data of customers. Financial institutions must ensure that robust data protection procedures are implemented to safeguard customer information and fully disclose to customers how their information is used.
For credit reporting agencies, the FCRA guarantees truth and openness in credit reporting between the agency and the customer. All businesses in the US are subject to the FTA Act, which mandates that they be open and honest about how they use and share customer data.
The $5.9 million lawsuit is settled by LoanCare
LoanCare recently reached a settlement with plaintiffs in a $5.9 million class action lawsuit earlier this month regarding a 2023 data breach in which the firm failed to stop the compromise of their customers’ private information.
The payout applies to customers who were notified by the company in November 2023 that their data might have been exposed through a data breach settlement notice.
Plaintiffs contend that if LoanCare had implemented stronger cybersecurity safeguards to secure customer data, the data breach may have been avoided.
Consumer names, addresses, Social Security numbers, and loan numbers were all affected by the data breach.
Plaintiffs may agree to a flat-rate payment or reimbursement for demonstrated losses or expenses as part of the settlement agreement.
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Plaintiffs may claim up to $6,500
You can claim up to $5,000 for extraordinary losses and receive a maximum payment of $1,500 for typical losses if you choose reimbursement payments.
A $100 flat payout is available to class members who did not suffer any losses or who do not want to request a compensation. The deadline for plaintiffs to file a claim is June 4.
The deadlines for objection and exclusion are August 5 and July 7, respectively. On September 4, the final approval hearing will be held.
Credit monitoring services, fees, communication charges, and other unpaid costs were considered ordinary losses; unpaid fraud or identity theft damages were considered extraordinary losses.
You must make sure that your claim category is listed when you submit if you claim one or both of them. The claimants also receive three years of identity monitoring services as part of the settlement.
Plaintiffs receive up to $1 million in identity theft insurance, access to fraud specialists, real-time credit monitoring, dark web scanning, and identity theft restoration services as part of these services.
You will be eligible for an extra year of identity monitoring if you are a class member who previously chose to use LoanCare’s 24-month identity monitoring services.
These measures are intended to guarantee that any compromised data is tracked for potential fraudulent use. You may learn more about this settlement and how to submit a claim by going to Top Class Actions.
