Pawn America Agrees to $3.19M Settlement Over 2021 Data Breach
Pawn America Minnesota LLC, Payday America Inc., and PAL Card Minnesota LLC collectively known as Pawn America have reached a $3.19 million settlement to resolve a class action lawsuit stemming from a September 2021 data breach. The incident exposed sensitive information of an estimated 679,604 current and former customers, including names, Social Security numbers, driver’s license details, passport numbers, government IDs, dates of birth, and financial account data.
Eligibility and Payouts
U.S. residents affected by the breach may qualify for compensation if they received a notification from Pawn America. Claimants can seek up to $5,000 for documented losses, such as fraudulent charges, identity theft expenses, credit monitoring costs, or professional fees. Additionally, all class members are eligible for a $30 cash payment, while California residents may receive an extra $50. Final payouts will depend on the total number of claims filed.
Claim Process and Deadlines
To participate, affected individuals must submit a claim online or by mail, using their unique Claim ID and PIN from the settlement notice. Documented loss claims require supporting evidence, such as bank statements or police reports. The deadline to file is July 6, 2026, with payments expected approximately 90 days after the court’s final approval on September 9, 2026.
Settlement Fund Allocation
The $3.19 million fund will cover:
- Settlement administration costs
- Up to $1,061,666.67 in attorneys’ fees
- Up to $50,000 in attorneys’ expenses
- $20,000 in service awards for class representatives
- Remaining funds for approved claimants
Pawn America denies any wrongdoing but agreed to the settlement to avoid further litigation. The breach underscores the financial and operational risks of inadequate data protection measures.
Source: https://www.claimdepot.com/settlements/pawn-america-settlement
Payday America Inc. TPRM report: https://www.rankiteo.com/company/payday-america
Pawn America Minnesota LLC TPRM report: https://www.rankiteo.com/company/pawn-america-and-payday-america
"id": "paypaw1775695029",
"linkid": "payday-america, pawn-america-and-payday-america",
"type": "Breach",
"date": "4/2026",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': '679,604',
'industry': 'Pawn Services, Financial Services',
'location': 'Minnesota, USA',
'name': 'Pawn America Minnesota LLC, Payday America '
'Inc., PAL Card Minnesota LLC',
'type': 'Business'}],
'customer_advisories': 'Affected individuals notified with claim instructions',
'data_breach': {'number_of_records_exposed': '679,604',
'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': ['Names',
'Social Security numbers',
'Driver’s license details',
'Passport numbers',
'Government IDs',
'Dates of birth',
'Financial account data']},
'date_detected': '2021-09',
'description': 'Pawn America Minnesota LLC, Payday America Inc., and PAL Card '
'Minnesota LLC collectively known as Pawn America have reached '
'a $3.19 million settlement to resolve a class action lawsuit '
'stemming from a September 2021 data breach. The incident '
'exposed sensitive information of an estimated 679,604 current '
'and former customers, including names, Social Security '
'numbers, driver’s license details, passport numbers, '
'government IDs, dates of birth, and financial account data.',
'impact': {'brand_reputation_impact': 'Undermined due to inadequate data '
'protection',
'data_compromised': '679,604 records',
'financial_loss': '$3.19 million settlement',
'identity_theft_risk': 'High (exposed SSNs, driver’s licenses, '
'passport numbers, etc.)',
'legal_liabilities': 'Class action lawsuit settlement',
'payment_information_risk': 'High (exposed financial account '
'data)'},
'investigation_status': 'Settled',
'lessons_learned': 'Inadequate data protection measures can lead to '
'significant financial and operational risks.',
'post_incident_analysis': {'root_causes': 'Inadequate data protection '
'measures'},
'references': [{'source': 'Settlement Notice'}],
'regulatory_compliance': {'legal_actions': 'Class action lawsuit'},
'response': {'communication_strategy': 'Settlement notices to affected '
'individuals'},
'title': 'Pawn America Data Breach Settlement',
'type': 'Data Breach'}