About 443,697 Bright Lending borrowers who never finished paying off a loan would see that balance reduced to zero under a proposed settlement, while about 180,926 who did pay a loan off would share a $15 million cash fund — and neither group has to file a claim. The only choice to make is how to be paid: borrowers in the cash group get a mailed check unless they switch to ACH, Venmo, PayPal or Zelle by December 21, 2026.
Status: Preliminarily approved September 21, 2026 | No claim form — cash and debt cancellation are automatic | December 21, 2026: deadline to pick an electronic payment, opt out or object | Final approval hearing January 19, 2027, 9:00 a.m., by telephone
Two Classes, No Overlap
Residents of Nevada and Utah are excluded from both classes. Everyone else falls into one class at most:
| Monetary Relief Class (about 180,926 people) | U.S. residents who entered into at least one Bright Lending loan between October 1, 2020 and June 4, 2026, and fully paid back at least one loan | A pro rata cash payment of at least $15 |
| Debt Relief Class (about 443,697 people) | U.S. residents who entered into at least one Bright Lending loan between October 1, 2020 and December 31, 2024, did not fully pay back at least one loan, and are not in the Monetary Relief Class | The outstanding balance canceled |
A borrower who repaid one loan and still owes on another sits in the cash class only — but still gets the unpaid balance canceled on a loan taken out between October 1, 2020 and December 31, 2024.
The class list comes from Bright Lending’s own records. According to the notice, the settlement website will let borrowers check cash eligibility using their last name and the unique number printed on the notice, though that lookup may take up to 30 days after the notice arrives to become available.
What Debt Cancellation Includes
- The outstanding balance on Bright Lending loans taken out between October 1, 2020 and December 31, 2024 is reduced to zero within 30 days after the settlement becomes final.
- All collection activity on those loans stops, and Bright Lending will not sell them to third parties.
For members of either class, Bright Lending is to ask the consumer reporting agencies to delete negative entries it reported on loans made during the class period. The settlement requires the request; it does not control how the credit bureaus act on it. The defendants have also agreed not to sell class members’ personal information to third parties for marketing.
How the Cash Is Divided
The Bright Lending settlement fund is split pro rata according to how much allegedly usurious interest each borrower paid above the principal of their loan, so borrowers who paid more interest get more. Anyone who paid no interest above principal receives $15, and no payment can be smaller than $15. Neither the notice nor the settlement agreement publishes an average or estimated payment.
Before distribution, the fund pays notice and administration costs, any attorneys’ fees and costs the court awards — class counsel may ask for up to 33.33% of the fund plus expenses — and service awards of up to $10,000 and $1,000 for the two named plaintiffs.
The money arrives in three installments: $100,000 for initial notice costs, $9,900,000 within 35 days after the settlement becomes final, and $5,000,000 by December 15, 2027 or six months after it becomes final, whichever is later. Checks must be cashed or deposited within 120 days of the postmark date; uncashed money stays in the fund. After the last installment arrives, a second distribution goes to class members who cashed their first check, as long as each would get more than $15. Anything left after that goes to a court-approved cy pres recipient.
Why Bright Lending Was Sued
Bright Lending is the business name of Aaniiih Nakoda Finance, LLC, an online lender. The case, Dixon v. Gatzke, No. 1:24-cv-11834, was filed in November 2024 in the U.S. District Court for the Northern District of Illinois. It claims Bright Lending charged interest far above the limits allowed under Illinois and other state laws, and that the defendants are legally responsible for those loans.
The defendants are Benjamin Gatzke, BWDS, LLC, and seven individuals the settlement agreement identifies as tribal defendants affiliated with the Fort Belknap Indian Community of Montana. All deny wrongdoing and liability and agreed to settle to avoid the cost and risk of more litigation. The court has not decided who is right.
The December 21, 2026 Deadline
There is no claim deadline. December 21, 2026 is the cutoff for three things:
- Payment method. Cash class members can choose ACH, Venmo, PayPal or Zelle, or give a new mailing address. Anyone who does nothing is paid by check at the most recent address in Bright Lending’s records, updated through the National Change of Address database or by the borrower.
- Opting out. Exclusion requests must be mailed and postmarked by that date.
- Objecting. Objections mailed to the court must be postmarked by that date.
Payment choices are made on the Online Payment Verification page of the official Bright Lending settlement website, run by American Legal Claim Services, LLC, using the Notice ID and PIN from the notice. That login does not decide who gets paid. The notice gives no time of day or time zone for the deadline.
Staying In Means Different Things for Each Class
A cash class member who stays in releases all claims against the defendants and other released parties relating to any Bright Lending loan, including claims not yet known. A debt relief class member gives up only the right to bring or join a class action, mass arbitration or other group proceeding over these claims, and keeps the right to sue or arbitrate individually.
An exclusion request is a signed letter mailed to the administrator that names the case (Dixon v. Gatzke), gives the borrower’s name, address and telephone number, and says, “I request to be excluded from the class settlement in this case.” Exclusion is all or nothing: a cash class member with an unpaid loan cannot opt out of just one part, and excluded borrowers get neither cash nor cancellation.
What Comes Next
Class counsel must file its fee and service-award request at least 14 days before December 21, 2026, and it will be posted on the settlement website. Judge Matthew F. Kennelly will hold the final approval hearing by telephone on January 19, 2027 at 9:00 a.m.; the date can move without new notice. If the settlement becomes final, balances are canceled and the credit-reporting request made within 30 days, and payments go out within 60 days. More detail is on the Bright Lending settlement page at OpenClassActions.com.
Frequently Asked Questions
Do Bright Lending borrowers need to file a claim?
No. Cash payments and loan cancellations go to class members automatically from Bright Lending’s records if the settlement is approved. December 21, 2026 is only the deadline to choose an electronic payment, opt out or object.
Will my unpaid Bright Lending loan really be canceled?
Under the proposed settlement, the outstanding balance on Bright Lending loans taken out between October 1, 2020 and December 31, 2024 is reduced to zero within 30 days after the settlement becomes final, and collection on those loans stops. Loans taken out after December 31, 2024 are not covered by the cancellation.
How much cash will a repaid borrower get?
No average is published. The $15 million fund is split pro rata by how much interest each borrower paid above principal, after fees and costs, and no payment is smaller than $15.
Can a borrower be in both classes?
No. A borrower who fully repaid at least one qualifying loan is in the Monetary Relief Class even if another loan is unpaid. That borrower still gets the unpaid balance canceled on a loan taken out from October 1, 2020 through December 31, 2024.
Who is not covered by the Bright Lending settlement?
Residents of Nevada and Utah are excluded from both classes. Borrowers whose only Bright Lending loans were taken out before October 1, 2020 are outside the class definitions, as are unpaid loans taken out after December 31, 2024.
What happens to a check that is never cashed?
Checks must be cashed or deposited within 120 days of the postmark date. Uncashed money stays in the fund and can go to a second distribution for class members who cashed their first check, if each would receive more than $15.
Sources
- Official settlement website, administered by American Legal Claim Services, LLC — BrightLendingSettlement.com (key dates and court documents).
- Long-form notice dated October 9, 2026; settlement agreement filed September 17, 2026 (Dkt. 87-3); order granting preliminary approval filed September 21, 2026 (Dkt. 89).
- Court docket — Dixon v. Gatzke, No. 1:24-cv-11834 (N.D. Ill.).
- OpenClassActions.com — Bright Lending $15M Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: Bright Lending $15M Settlement — Automatic Cash Payments and Canceled Loan Balances — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.