Customers affected by a FinWise Bank data breach could claim up to $5,000 from a $2.8 million class action settlement, with the deadline for compensation claims set for October 29, 2026.
Data Breach Exposed Customers’ Personal Information
The alleged breach occurred around May 31, 2024 and is said to have exposed sensitive information belonging to affected customers. The information potentially involved names, dates of birth, Social Security numbers and account numbers.
FinWise Bank, FinWise Bancorp and American First Finance subsequently faced legal action from customers who alleged that the companies had failed to take adequate steps to protect their personal information.
FinWise Bank has denied wrongdoing, while the companies agreed to settle the lawsuit for $2.8 million.
Eligible Customers Could Claim Up To $5,000
People who experienced documented financial losses linked to the breach could qualify for reimbursement of up to $5,000. Eligible losses can include money lost through fraud or identity theft, as well as certain expenses linked to the incident.
Claimants may need to provide supporting documents such as receipts, invoices, bank correspondence, account statements, tax forms or police reports. The maximum $5,000 payment is not guaranteed and applies to eligible documented losses subject to the settlement terms.
Customers Without Documented Losses Could Still Receive Money
People who did not suffer documented financial losses may still be eligible for a payment. They can claim a proportional share of the settlement fund, with the eventual amount depending on the number of valid claims submitted.
This means the payment for these claimants cannot be known in advance.
California Residents Could Receive Additional Compensation
The settlement provides a separate provision for eligible California residents. Under the reported terms, qualifying claimants in California could receive up to twice the cash fund payment available to eligible residents elsewhere.
The amount will depend on the applicable settlement rules and the number of valid claims.
Two Years Of Credit Monitoring Available
Affected customers can also receive two years of free credit monitoring, explains The Sun. Those who want the service need to select the credit monitoring option when submitting their claim form.
The service is separate from any cash compensation available under the settlement.
October 29 Is The Compensation Claim Deadline
Eligible customers have until October 29, 2026, to submit a compensation claim. The deadline to object to or exclude yourself from the settlement was September 29, 2026.
People who remain eligible to participate can therefore still submit claims, but they must do so before the October 29 deadline.
Final Approval Hearing Is Set For December
A final approval hearing is scheduled for December 10, 2026. The court will consider whether to grant final approval to the settlement at that hearing.
Payments would be distributed after the settlement receives final approval and the claims process is completed.
Who Could Be Eligible?
The settlement covers people whose private information was compromised in the FinWise Bank data breach around May 31, 2024. This includes customers who received an official notification stating that their personal information had been exposed.
Eligible customers may seek up to $5,000 for documented losses, a proportional cash payment where applicable, and two years of credit monitoring. Anyone who believes they were affected should review the official settlement terms and submit a claim before October 29, 2026.
