If you received a mortgage breach notice, file with the settlement administrator named in that notice before its deadline. If you did not receive a notice, protect your credit, document misuse, and use agency reports instead.
A class-action settlement is a court-approved fund that pays eligible customers without a separate lawsuit. TechCrunch reported the loanDepot January 2024 ransomware attack exposed names, Social Security numbers, dates of birth and addresses TechCrunch's February 2024 report. The same report says financial account numbers, phone numbers and emails for about 17 million customers were also taken.
Table of Contents
- Were You Part of the Breach?
- How Do You Submit a Settlement Claim?
- What Proof Strengthens Your Claim?
- How Do You Stop New Fraud?
- Where Should You Report Problems?
Were You Part of the Breach?
Infosecurity Magazine reported the incident involved unauthorized access plus data encryption and forced shutdown of some systems. The company investigated with cybersecurity experts and notified law enforcement.
Sparrow reported the January 3-5, 2024 breach affecting about 16.9 million people produced a $25 million settlement for notified customers Sparrow's March 2025 summary. The claims alleged negligent data protection, which loanDepot settled without admitting wrongdoing. Keep your mailed or emailed notice, because notice status controls eligibility for that fund.
How Do You Submit a Settlement Claim?
Use only the administrator address, website, or phone number printed in your notice. A ransomware attack locks or steals data for extortion, so scammers copy settlement names to steal claim details.
Submit before the deadline stated in your notice. Keep a copy of the form, uploads, and confirmation number.
- Check name, address, and claim code against your notice
- Select the payment option shown on the official form
- Upload proof only if you seek costs or lost time
- Save the confirmation page and claim number
What Proof Strengthens Your Claim?
If someone misused your data, file at IdentityTheft.gov to create a free FTC Identity Theft Report and recovery plan. Experian explains that report and plan can serve as proof with businesses, bureaus and collectors Experian's identity-theft guide.
Attach bank disputes, collection letters, tax notices, or receipts tied to the misuse. Add a short log with dates, hours spent, and postage or fees paid. Claim only costs you can document, because estimates slow review.
How Do You Stop New Fraud?
Experian advises victims to place a free one-year initial fraud alert by contacting one of Equifax, Experian or TransUnion. The alert tells lenders to take extra steps to verify your identity.
For stronger protection, place a separate credit freeze at all three bureaus. Check mortgage statements, bank accounts, and credit reports for loans or inquiries you did not start.
Where Should You Report Problems?
If your lender mishandles fraud charges or breach help, the Consumer Financial Protection Bureau accepts complaints online at consumerfinance.gov/complaint or by calling 855-411-2372. You can also file a privacy complaint with your state attorney general, such as the Texas online consumer-complaint privacy form.
The FBI asks ransomware and breach victims to report at ic3.gov for threat analysis. Those reports do not guarantee an individual response or recovery of funds. File at ic3.gov even after you submit a settlement claim, so investigators can link the attack pattern.