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Flagstar Bank data breach settlement: Find out if you qualify for up to $25,000
Flagstar Bank customers affected by two data breaches in 2021 may be able to claim up to $25,000 under a proposed $31.5 million class-action settlement.
Flagstar is one of the largest regional banks in the country with 340 locations nationwide. The settlement would resolve claims related to two separate data breaches in 2021: one in January, which affected 1.47 million customers, and another in December, which affected 1.58 million customers.
According to the lawsuit, more than 2.18 million Flagstar customers’ personal information was accessed in the breaches.
The lawsuit claims that Flagstar not only failed to protect customers’ personal information but also failed to promptly notify those affected. Flagstar did not admit to any wrongdoing as part of the settlement, and the court has also not determined that Flagstar did anything wrong.
Eligible Flagstar customers have until Aug. 11, 2026, to claim the settlement benefits. Here’s what to know.
How much can you get from the settlement?
There’s a range of benefits the settlement offers, and eligibility depends on how customers were affected by the data breaches.
Claimants may qualify for one or more different benefits:
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Reimbursement for losses up to $25,000: This covers costs related to the data breaches, including unreimbursed losses due to identity theft, credit monitoring, and credit freeze costs, fees for attorney or credit repair, and more. Documentation of those costs or losses is required to claim this benefit.
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Residual cash payment: This benefit is based on the settlement amount remaining after other costs are covered. It’s estimated to be about $60 per person, but could be up to $599.
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Three years of credit monitoring services: This benefit covers credit monitoring at the three major credit bureaus, including notices of credit report changes, identity theft insurance protection, dark web monitoring, and more.
Customers who were California residents when the data breaches happened in 2021 may also be eligible for a California Statutory Payment of up to $100.
Who is eligible?
More than 2.1 million Flagstar customers whose information was affected by the two data breaches may be eligible for settlement benefits.
Those who are eligible should have already received an email or a mailed letter notifying them that they are class members of the settlement. The claim ID necessary to submit a claim is included in this notice.
Flagstar customers can also find out if they’re eligible by contacting the settlement administrator:
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Flagstar Settlement Administrator
Claim forms are available to submit online here or to download here and mail to the Settlement Administrator.
Don’t forget: Youmustsubmit your claim form by Aug. 11, 2026. That’s the last day to file your claim online or to postmark your mailed claim form.
The deadline has already passed for eligible customers to opt out of the settlement. Those who are eligible and decide to do nothing — not submit a claim form online or by mail — won’t receive any settlement benefits and also won’t be able to take part in any other lawsuit against Flagstar related to the 2021 data breaches.
When will you receive settlement benefits?
There’s no exact date yet for when claimants should expect to receive the settlement benefits — but they could be waiting a while.
Final approval for the settlement is scheduled for Oct. 1, 2026. But appeals after the final approval, as well as processing claim forms, could take more than a year to resolve, according to the settlement website.
How to protect your personal information
Protecting yourself from a data breach that affects millions may not always be possible. But it’s still smart to take action to protect your information when you can. Identity theft can affect your ability to apply for credit cards and loans, lower your credit score, and even put your money at risk.
Here are some steps you can take to protect yourself today:
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Freeze your credit: Contact each of the major credit bureaus and place a freeze on your credit. You can do this for free, and then lift the freeze anytime you want to apply for credit or a loan. A credit freeze prevents others from applying for anything in your name that requires a credit check.
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Monitor your credit: Make sure to monitor your credit regularly. AnnualCreditReport.com allows you to view your credit reports from each of the three major credit bureaus up to once per week. This can help you catch any inaccurate information or unauthorized accounts quickly.
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Monitor your accounts: It can pay to check your bank accounts regularly, too, to ensure purchases or withdrawals were actually made by you. You can also set up alerts and get notified anytime you make a transaction.
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Use strong passwords: Create a unique, strong password for each of your online accounts — especially financial accounts. That means avoiding using the same password across multiple accounts or any password that is easy to guess, like your birthday. You can also opt into two-factor authentication for extra security.
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