Nations Direct Mortgage Data Breach Class Action Settlement

Individuals who live in the United States and received a notice from Nations Direct Mortgage that their private information was compromised in the December 2023 data breach, you may be eligible to claim up to $2,875 from a class action settlement. The settlement has an estimated 83,108 class members.

Nations Direct Mortgage has agreed to pay to settle a class action lawsuit that arose after a targeted cyberattack in December 2023 exposed sensitive customer information. The plaintiffs claimed that the mortgage company failed to adequately protect personal data, including names, addresses, phone numbers, email addresses, dates of birth and Social Security numbers.

Who is eligible for a data breach settlement payout?

• Class members members are individuals that reside in the United States and received a notice from Nations Direct Mortgage that their personal information was compromised in the December 2023 data breach.
• California residents are also part of the California subclass and are eligible for an additional payment.
• Current and former Nations Direct Mortgage employees involved in the data breach are eligible to submit a claim.

How much is the class action payment?

All class members may claim one or more of the following benefits:

• Credit monitoring services: Class members previously enrolled in credit monitoring services provided by Nations Direct Mortgage, can elect to receive an additional two years of coverage. This includes $1 million in identity theft insurance, real-time credit file monitoring, dark web scanning and public records monitoring.
• Documented losses: Class members can submit a claim to receive up to $2,750 in documented out-of-pocket losses. Eligible expenses include bank or credit card fees, fees for credit reports or freezing and unfreezing credit, postage for contacting banks by mail and unreimbursed fraudulent charges or other losses due to identity theft.
• Lost time: Class members may claim up to two hours at $25 per hour, for a maximum of $50.
• California subclass payment: California resident, may claim a one-time statutory cash payment of $75.

How to claim a class action rebate

To receive a settlement payment, a claim form is required. Class members can file a claim online print and mail or email the PDF claim form to the settlement administrator.

Settlement administrator's mailing address: NDM Data Breach Incident Settlement, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799-9958

Settlement administrator's email address: info@NDMSettlement.com

All claims must be submitted online, postmarked, or emailed by Jan. 7, 2026.

Required proof and claim information

• Unique ID and PIN from settlement notice required to submit an online claim.
• Documented losses claims require supporting documentation such as bank or credit card statements, receipts or invoices for services and other proof of identity theft and fraudulent charges.

Payout options

Class members can choose from several payment methods:

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Paper check mailed to address provided

Data breach settlement fund breakdown

The settlement fund of $225,000 will cover all payments to class members, attorneys’ fees, service awards and administrative costs.

The breakdown is as follows:

• Settlement administration costs: To be determined
• Attorneys’ fees and costs: Up to $225,000
• Service awards to class representatives: $2,500 each
• Additional credit monitoring services: Cost determined by the number of claims filed
• Payments to approved claimants: Total determined by the number of claims filed

Important dates

• Opt-out deadline: Dec. 23, 2025
• Deadline to file a claim: Jan. 7, 2026
• Final approval hearing: Jan. 22, 2026, at 10:15 a.m. Eastern (via Zoom)

When is the Nations Direct Mortgage settlement payout date?

Payments will be issued to approved claimants approximately 60 days after the claim deadline.

Why was there a class action settlement?

The class action lawsuit alleged that Nations Direct Mortgage failed to adequately protect customer data, resulting in a targeted cyberattack in December 2023. The breach exposed sensitive personal information, including names, addresses, phone numbers, email addresses, dates of birth and Social Security numbers.

The mortgage company denies any wrongdoing, but both sides agreed to settle to avoid the expense and uncertainty of further litigation.

Sources

1. Official settlement website FAQ page
2. Claim form
3. Settlement agreement