Purpose Financial Settles $7.75M Over 2023 Data Breach Eligible Consumers Can Claim Payouts
A $7.75 million class action settlement has been reached with Purpose Financial (formerly Advance America), resolving allegations that the company failed to prevent a February 2023 data breach exposing sensitive consumer information. The breach compromised names and Social Security numbers, according to the lawsuit, which accused Purpose Financial of inadequate cybersecurity measures.
While the company denies wrongdoing, the settlement avoids further litigation and provides payouts to affected consumers. Eligibility is limited to those who received a data breach notification letter from Purpose Financial, which includes a Unique ID and PIN required to file a claim. The deadline to submit claims is February 2, 2026, though objections and exclusions were due by January 2.
Payments will vary based on documentation:
- Up to $5,000 for claimants with proof of out-of-pocket expenses (e.g., identity theft losses, credit monitoring fees).
- A base payout of ~$50 for all claimants, with potential adjustments based on the number of filings.
- California residents receive an additional $50, bringing the maximum possible payout to $5,100.
Payments are expected in 2026, pending final approval at a March 17 hearing. Those who lost their notification letter can request their Unique ID and PIN by emailing the settlement administrator with their full name and mailing address.
The settlement follows the broader trend of companies resolving data breach claims to avoid prolonged legal costs, even without admitting fault.
Source: https://www.the-sun.com/money/15842910/purpose-financial-cash-advance-data-breach-settlement/
Purpose Financial cybersecurity rating report: https://www.rankiteo.com/company/havepurpose
"id": "HAV1769461432",
"linkid": "havepurpose",
"type": "Breach",
"date": "2/2023",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': 'Eligible consumers who received '
'a data breach notification '
'letter',
'industry': 'Consumer Lending',
'name': 'Purpose Financial (formerly Advance America)',
'type': 'Financial Services'}],
'customer_advisories': 'Eligible consumers can claim payouts by February 2, '
'2026. Payments vary based on documentation (up to '
'$5,000 for expenses, ~$50 base payout, +$50 for '
'California residents).',
'data_breach': {'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': ['Names',
'Social Security numbers']},
'date_detected': '2023-02',
'description': 'A $7.75 million class action settlement has been reached with '
'Purpose Financial (formerly Advance America) over a February '
'2023 data breach that exposed sensitive consumer information, '
'including names and Social Security numbers. The lawsuit '
'alleged inadequate cybersecurity measures.',
'impact': {'data_compromised': 'Names, Social Security numbers',
'financial_loss': '$7.75M settlement',
'identity_theft_risk': 'High',
'legal_liabilities': 'Class action lawsuit'},
'investigation_status': 'Settled',
'post_incident_analysis': {'root_causes': 'Alleged inadequate cybersecurity '
'measures'},
'references': [{'source': 'Class action settlement notice'}],
'regulatory_compliance': {'legal_actions': 'Class action lawsuit'},
'response': {'communication_strategy': 'Data breach notification letters with '
'Unique ID and PIN'},
'title': 'Purpose Financial Data Breach Settlement',
'type': 'Data Breach'}