More than 2 million people whose personal information was exposed in two 2021 Flagstar Bank data breaches could be eligible for cash payments, credit monitoring and other benefits under a $31.5 million class-action settlement.
Flagstar Bank is one of the nation's largest regional banks, with approximately 340 locations. The bank provides consumer, business and wealth management services and has roots dating to 1859, according to its website.
The settlement resolves claims that Flagstar failed to adequately protect customers' personal information and delayed notifying affected individuals after cyberattacks in January and December 2021. Flagstar denies the allegations and says it did not do anything wrong. The bank agreed to the settlement to avoid
the prospect of prolonged litigation.
Eligible class members can receive reimbursement for losses of up to $25,000, free credit monitoring or a cash payment estimated at about $60, depending on the number of valid claims filed.
The deadline to submit a claim is Aug. 11, 2026.
Here's what to know about the Flagstar Bank data breach settlement, including who qualifies, how much you could receive and what to do if your information has been compromised.
Who is eligible for the Flagstar Bank settlement?
The settlement covers approximately 2,187,170 people in the United States whose personal information was affected by Flagstar's data breaches, including about 364,000 California residents, according to the settlement website.
Eligible consumers should have received a settlement notice by email or mail. If you received an email notice, your Settlement Claim ID is located above your name near the top of the message. If you received a postcard notice, the Claim ID appears above your name and mailing address.
Those who are unsure whether they are included in the settlement can contact the settlement administrator or visit the official settlement website to verify their eligibility.
How much money could you receive?
Settlement class members who submit valid claims may qualify for one or more of the following benefits:
- Up to $25,000 for documented financial losses related to the data breaches, including fraud losses, identity theft expenses, credit monitoring costs and certain legal or accounting fees.
- Cash payment: Eligible people who submit a valid claim but do not seek reimbursement for documented losses may receive a payment estimated at about $60, though the final amount could be as much as $599.
- Three years of three-bureau credit monitoring, identity restoration services, dark web monitoring and up to $1 million in identity theft insurance.
- A statutory payment of up to $100 for eligible California residents.
How do you file a claim?
Anyone seeking settlement benefits must submit a valid claim by Aug. 11, 2026. Claims can be filed online or by mailing a completed claim form to the settlement administrator.
The deadlines to opt out of or object to the settlement have already passed.
A final approval hearing is scheduled for Oct. 1, 2026. If the settlement receives final approval and there are no appeals, payments will be distributed after attorneys' fees and other court-approved expenses are paid. Eligible claimants can choose to receive payment by PayPal, Venmo, Zelle or paper check.
What should you do if your data is compromised?
If your personal information has been exposed in a data breach, experts recommend reviewing your financial accounts for suspicious activity, placing a fraud alert or credit freeze with the major credit bureaus and reporting identity theft to the Federal Trade Commission if you believe your information has been misused.
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com, or on X @athompsonUSAT
This article originally appeared on USA TODAY: Customers could get up to $25K in Flagstar Bank settlement
