A major data breach involving Purpose Financial has resulted in a $7.75 million class action settlement, offering potential compensation to consumers whose sensitive personal information was exposed. Purpose Financial, formerly known as Advance America, reached the settlement to resolve claims connected to a cybersecurity incident that occurred in early 2023.
Data breaches involving Social Security numbers and personal identifiers can create long lasting concerns for affected individuals. This settlement highlights the growing legal and financial consequences companies face when consumer data is compromised.
Below is a detailed breakdown of what happened, who may qualify for compensation, and what affected consumers should know moving forward.
What Happened in the Purpose Financial Data Breach
According to court records, the data breach occurred on or around Feb. 7, 2023. During the incident, unauthorized parties allegedly accessed files containing sensitive consumer information.
The exposed data reportedly included names and Social Security numbers. This type of information is considered highly sensitive because it can be used for identity theft, fraud, and other forms of financial misuse.
The class action lawsuit alleged that Purpose Financial could have prevented the breach by implementing reasonable cybersecurity safeguards. While the company did not admit fault, it agreed to the settlement to resolve the claims and avoid further litigation.
About Purpose Financial
Purpose Financial is a financial services company that provides payday loans, cash advances, and other short term lending products. The company operates under multiple brand names and serves consumers across several states.
As a business that handles large volumes of personal and financial data, Purpose Financial is subject to various data protection responsibilities. The lawsuit focused on whether appropriate measures were taken to safeguard that information prior to the breach.
Who Is Eligible for the Settlement
The settlement applies to a defined group of consumers impacted by the data breach.
You may be eligible if:
- You received a data breach notification letter from Purpose Financial
- The notice stated that your personal information may have been compromised
- Your name an d Social Security number appeared in the files accessed during the February 2023 breach
Only individuals who meet these criteria are considered class members for settlement purposes.
Potential Compensation Available
The settlement provides multiple forms of compensation, depending on individual circumstances and the number of valid claims submitted.
Reimbursement for Out of Pocket Expenses
Eligible class members may claim up to $5,000 for documented out of pocket expenses related to the data breach. These expenses can include:
- Unreimbursed fraud losses
- Identity theft related costs
- Professional fees such as accountants or identity restoration services
- Credit monitoring or credit related expenses
- Other documented losses tied directly to the breach
Claimants must submit supporting documentation such as bank statements, invoices, receipts, or bills. A written explanation of how the expenses resulted from the data breach is also required.
Pro Rata Cash Payment
In addition to expense reimbursement, class members may receive a pro rata cash payment. The estimated payment is approximately $50 per claimant.
This amount may increase or decrease depending on the total number of claims submitted and approved.
Additional Compensation for California Residents
California residents are eligible for an extra $50 pro rata cash payment under the settlement. This additional amount reflects California specific privacy protections and consumer laws.
As with the standard cash payment, the final amount may vary based on participation levels.
Important Deadlines to Know
Missing a deadline could result in losing eligibility for settlement benefits. Key dates include:
- Claim form submission deadline: Feb. 2, 2026
- Deadline to exclude yourself or object to the settlement: Jan. 2, 2026
- Final approval hearing: March 17, 2026
Class members must submit a valid claim form by the February 2026 deadline to receive any compensation.
Settlement Approval Process
The settlement still requires final approval from the court. A hearing is scheduled for March 17, 2026, in the U.S. District Court for the District of South Carolina.
At the hearing, the court will consider whether the settlement is fair, reasonable, and adequate for class members. If approved, payments will be distributed after administrative processing.
Why Data Breach Settlements Matter
Data breaches involving Social Security numbers can have long term consequences. Identity theft may occur months or even years after a breach, making early awareness and documentation critical.
Settlements like this serve several purposes:
- Providing financial relief to affected consumers
- Encouraging stronger data security practices
- Raising public awareness about data privacy risks
Even when no wrongdoing is admitted, these cases underscore the importance of protecting personal information.
Steps Affected Consumers Should Consider
Consumers who believe they are eligible should take time to gather documentation and review their records.
Helpful steps include:
- Locating the data breach notification letter
- Reviewing financial statements for suspicious activity
- Saving receipts and documentation for related expenses
- Monitoring credit reports for irregularities
- Submitting the claim form before the deadline
Staying organized can make the claims process smoother and reduce delays.
Case Information and Administration
The case is titled:
Hernandez, et al. v. Purpose Financial Inc. f k a Advance America Cash Advance Centers Inc., et al.
Case No. 7:23 CV 04256 JDA
U.S. District Court for the District of South Carolina
The claims administrator is Simpluris Inc., which is responsible for processing claims and handling settlement communications.
The Broader Impact of Data Breaches
As financial services companies increasingly rely on digital systems, data security remains a growing concern. Breaches involving consumer lending companies can expose highly sensitive information that is difficult to replace.
For consumers, these incidents highlight the importance of vigilance, record keeping, and understanding available remedies when personal data is compromised.
For companies, settlements like this reflect the financial risks associated with data protection failures.
About Ted Law Firm
At Ted Law Firm,recognizes the serious impact data breaches can have on individuals and families.We serve families across Aiken, Anderson, Charleston, Columbia, Greenville, Myrtle Beach, North Augusta and Orangeburg.The firm understands the stress, uncertainty, and potential harm that follow the exposure of sensitive personal information.Contact us today for a free consultation.
