Advance America Cash Advance $7.75M Data Breach Settlement

Individuals who received a notice stating a data breach involving Purpose Financial Inc. (formerly known as Advance America Cash Advance Centers Inc.) may have compromised their name and Social Security number could be eligible to claim up to $5,100 from a class action settlement.

Purpose Financial agreed to pay $7.75 million to settle a class action lawsuit alleging an unauthorized third party may have accessed files containing personal information, including names and Social Security numbers. The lawsuit claimed negligence, breach of implied contract, unjust enrichment and violations of several state consumer protection and privacy laws.

Who can file a claim?

Class members must meet all of the following criteria:

• They resided in the United States at the time of the data incident.
• Their name and Social Security number appeared in the files the Purpose Financial data breach impacted in February 2023.
• They received a notification letter from Purpose Financial about the data incident.

Eligible class members include customers of Purpose Financial Inc. and its nine subsidiary companies:

• Advance America, Cash Advance Centers of California LLC
• Advance America, Cash Advance Centers of Florida LLC
• Advance America, Cash Advance Centers of Indiana Inc.
• Advance America, Cash Advance Centers of Kentucky Inc.
• Advance America, Cash Advance Centers of Mississippi LLC
• Advance America, Cash Centers of Nevada Inc.
• Advance America, Cash Advance Centers of Ohio Inc.
• Advance America, Cash Advance Centers of Tennessee Inc.
• ACSO of Michigan Inc.

How much is the Advance America Cash Advance payout?

The settlement fund is capped at $7.75 million. The settlement administrator will make payments for out-of-pocket losses first, followed by California resident payments and then pro rata cash payments. If the total amount claimed exceeds the available funds, the administrator will reduce payments proportionally to ensure costs do not exceed the cap.

• Reimbursement for out-of-pocket losses: Up to $5,000 for documented, unreimbursed out-of-pocket losses or expenses that are reasonably traceable to the data incident. Examples include:
• Losses from fraud or identity theft
• Professional fees (such as attorneys, accountants or credit repair services)
• Costs for freezing or unfreezing credit
• Credit monitoring costs incurred after the incident
• Miscellaneous expenses like notary, postage, copying, mileage, late fees and card replacement fees

• Pro rata cash payment: An estimated $50 cash payment the the settlement administrator may adjust upward or downward depending on the number of valid claims and the remaining funds after it makes all other payments.
• California resident cash payment: An additional estimated $50 cash payment for class members who were California residents at the time of the incident (February 2023). The settlement administrator may also adjust this payment depending on the number of valid claims and available funds.

How to claim a class action payment

Class members can file the online claim form or download, complete and print the PDF claim form and mail it to the settlement administrator. The claim deadline Feb. 2, 2026.

Settlement administrator's mailing address: Purpose Financial Data Incident, c/o Simpluris Inc., P.O. Box 25226, Santa Ana, CA 92799

What proof or documentation is required to submit a claim?

• All class members must provide the unique ID and PIN located on the settlement notice they received. Those who misplaced their notice should contact the settlement administrator at info@PurposeFinancialSettlement.com and request their unique ID and PIN by providing their full name and mailing address.
• They must also provide the last four digits of their Social Security number.

• Out-of-pocket loss claims require documentation, such as receipts, account statements or official correspondence.
• Pro rata cash payment and California resident payment claims require claimants to select the appropriate option. California residents must confirm their residency in February 2023.

Payout options

• Electronic payment (online claims only)
• Paper check (default payment option)

$7.75 million settlement fund

The $7,750,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $2,583,333.33
• Attorneys' expenses: Up to $75,000
• Service awards to class representatives: $3,000 each
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: Jan. 2, 2026
• Deadline to file a claim: Feb. 2, 2026
• Final approval hearing: Mar. 17, 2026

When is the Purpose Financial settlement payout date?

The settlement administrator will issue payments approximately 95 days after the court resolves any appeals or grants final approval, whichever is later.

Why is there a class action settlement?

The class action lawsuit alleged that Purpose Financial was responsible for a data incident in February 2023 that exposed personal information, including names and Social Security numbers. The plaintiffs claimed this incident resulted from negligence and violations of various state consumer protection and privacy laws.

Purpose Financial denies any wrongdoing but agreed to settle to avoid the costs and risks of continued litigation.

Sources

1. Class notice
2. Claim form
3. Settlement agreement
4. Settlement FAQ