$7.75M Purpose Financial Settlement Ends Class Action Lawsuit Over February 2023 Data Breach

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A $7,750,000 Purpose Financial class action settlement offers cash and reimbursements to consumers whose names and Social Security numbers may have been exposed in a February 2023 data breach.

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The Purpose Financial class action settlement received preliminary approval from the court on October 2, 2025 and covers anyone whose name and Social Security number were possibly compromised in the February 2023 data breach that impacted the payday loan company and several subsidiaries.

The court-approved website for the data breach settlement with Purpose Financial, which was formerly known as Advance America Cash Advance Centers, can be found at PurposeFinancialSettlement.com.

Per the settlement website, settlement class members who submit a valid, timely claim form are eligible to receive up to $5,000 for unreimbursed out-of-pocket losses associated with the Purpose Financial/Advance America data breach. A list of expenses covered by this benefit includes, but is not limited to, losses relating to identity theft and fraud, professional fees, fees for credit repair, costs for freezing or unfreezing credit, costs for credit monitoring, and miscellaneous expenses such as postage, mileage, or notary fees.

Class members who submit a claim form for reimbursement of out-of-pocket expenses must also submit reasonable documentation, such as receipts or invoices, supporting the reason for and nature of each expense, the settlement website says.

Alternatively, class members can opt to receive a pro rata (equal share) cash payment of approximately $50, an amount that may be increased or decreased depending on the total number of valid claims.

Further, class members who lived in California during the breach may also receive a cash payout of about $50.

To submit a Purpose Financial claim form online, class members can go to this page on the settlement website and enter the unique ID and PIN from their copy of the settlement notice. Settlement class members can also download a PDF of the claim form to print, fill out and mail to the settlement administrator.

All Purpose Financial settlement claim forms must be submitted online or postmarked by February 2, 2026.

A hearing will be held on March 17, 2026 to determine whether the Advance America Cash Advance Centers settlement will receive final court approval. Compensation will be distributed only after final approval is granted and any appeals are resolved.

The Purpose Financial class action lawsuit alleged that on or around February 7, 2023, an unauthorized third party accessed consumers’ private information, such as names and Social Security numbers, on Purpose Financial’s corporate network. Purpose Financial offers payday loans, flex loans, check cashing, check advances and more, for which it collects a significant amount of private data.

The filing claimed that Purpose Financial failed to implement effective safeguards for the personally identifiable information accessed in the data breach. Per the complaint, Purpose Financial allegedly further failed to provide in its data breach notice all relevant information to the affected consumers, who were not warned that their private information was already for sale on the dark web.

A similar class action lawsuit, Gibson v. Advance America, et al., raised concerns about the same February 2023 data breach, asserting that Purpose Financial and Advance America failed to notify consumers of the breach for six months. The two class action lawsuits were consolidated into a single case in October 2023.  

Did you know that some class action settlements require no proof to submit a claim? Check out the latest class action settlements.