America Cash Advance Data Breach $7.75M Class Action Settlement
By Steve Levine
Updated: December 7, 2025
Status: Open for Claims
Settlement Amount: $7,750,000
Claim Form Deadline: February 2, 2026
Proof required: No for $50 payments, Yes for up to $5,000
You may be part of a new $7.75 million class action settlement reached with Advance America Cash Advance and Purpose Financial and its subsidiaries, related to a data breach discovered on or about February 7, 2023. The class action lawsuit states that in 2023 an unauthorized third party may have accessed files containing names together with Social Security numbers, resulting in potnetial damages to affected consumers.
Purpose Financial denies wrongdoing and liability, but has agreed to pay out nearly $8 million. The Purpose Financial class action settlement provides payments to eligible consumers who received a notice letter and whose names and Social Security numbers appeared in impacted files.
What is the Total Settlement Amount?
The total settlement fund is $7,750,000. This non reversionary fund covers class member payments, administration and notice costs, attorneys' fees and expenses, and service awards. Pro rata adjustments may increase or decrease cash payments depending on total approved claims and costs.What is Advance America Cash Advance?
Advance America is a long-running U.S. lender offering short-term financial products like payday loans, installment loans, title loans, and lines of credit. Founded in 1997, the company provides quick online or in-store access to cash, often with same-day funding. Its services are designed for people who need fast help covering unexpected costs, although the loans typically come with high fees and short repayment periods.Who is Purpose Financial?
Purpose Financial, Inc., formerly known as Advance America Cash Advance Centers, Inc., operates a network of financial service providers offering short-term loans, installment loans, and other credit-related products across the United States. The company and its affiliates manage consumer lending brands and services both online and through physical retail locations.According to court filings, the February 2023 data breach impacted systems maintained by Purpose Financial and its subsidiaries, exposing potentially personally identifiable or sensitive consumer information to unauthorized access.
How Do I Qualify For a Payout?
You may qualify if you received a notice letter about the February 2023 data incident and your name and Social Security number were in Purpose Financial's impacted files. Only notified individuals are in the settlement class.How Much Can I Get Paid?
You can request one or more of the following benefits.• Pro Rata Cash Payment: about $50, subject to increase or decrease based on the number of approved claims and other settlement costs.
• California Resident Cash Payment: an additional about $50 for class members who resided in California at the time of the incident, subject to pro rata adjustment.
• Out of Pocket Losses: reimbursement up to $5,000 with documentation for unreimbursed losses reasonably traceable to the incident, including identity theft, professional fees, credit freeze costs, credit monitoring you purchased, and related expenses.
How Do I File a Claim?
File online at the official site or submit a paper claim by mail. Follow the instructions on the claim form and include documentation only if you are seeking reimbursement for out of pocket losses. Keep your contact information current with the administrator.What is the Claim Form Deadline?
Claims must be submitted online or postmarked by February 2, 2026.What are the Important Dates?
Opt out deadline: January 2, 2026
Objection deadline: January 2, 2026
Final Approval Hearing: March 17, 2026
Claim Deadline: February 2, 2026
Are Payday Loans or Cash Advances Considered Predatory?
Payday loans are widely considered predatory by many consumer advocates, regulators, and financial experts because of how the industry typically operates. Here is the clearest way to understand why:Payday loans often come with extremely high fees and annual percentage rates that can reach several hundred percent. The repayment window is usually very short, which can make it difficult for borrowers to pay the loan back on time. When someone cannot repay, the lender may roll the loan over or issue a new one, creating a cycle where the borrower keeps paying fees without reducing the principal balance. This pattern is why the loans are often described as trapping people in debt rather than solving a short-term cash problem.
Even with the risks, payday lenders remain popular because they offer fast access to money with minimal credit requirements. People who have urgent expenses and limited options sometimes feel these loans are their only available choice.
When is the class action settlement payment date?
If the Court grants final approval and after any appeals are resolved, payments are typically issued several months after the final approval hearing on March 17, 2026.Is Proof Required to File a Claim?
No documentation is required for the approximate $50 cash payment or the additional California payment. Documentation is required for up to $5,000 in out of pocket losses. However, you will be asked for a unique Notice, Pin or ID that you may have received via mail or email prior. If you do not have this you can still file a paper claim form.How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:Claim Form Website: PurposeFinancialSettlement.com
Submit Claim
Official Settlement Notice
Sources
• Official Settlement Website: www.PurposeFinancialSettlement.com• U.S. District Court, District of South Carolina, Hernandez et al. v. Purpose Financial, Inc. f/k/a Advance America Cash Advance Centers, Inc., et al., No. 7:23-CV-04256-JDA
• Settlement Agreement and Long Form Notice on the official website
Filing Class Action Settlement Claims
Please submit only truthful information. False claims can be rejected and may carry penalties. If you are unsure whether you qualify, review the official notice or contact the administrator. OpenClassActions.com is a consumer news site and is not a settlement administrator or a law firm.
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| Class Action Summary | |
| Status | Open for Claims |
|---|---|
| Claim Form Deadline | February 2, 2026 |
| Settlement Amount | $7,750,000 |
| Category | Data Breach |
| Estimated Payout per Person | About $50, plus about $50 for California residents, or up to $5,000 with proof |
| Case Number | 7:23-CV-04256-JDA |
| Case Title | Hernandez et al. v. Purpose Financial, Inc. f/k/a Advance America Cash Advance Centers, Inc., et al. |
| Court | U.S. District Court for the District of South Carolina |
| Final Approval Hearing | March 17, 2026 |
| Claim Website | PurposeFinancialSettlement.com |