Flagstar Bank Settlement 2026: Who Can Claim Up to $25,000 by August 11?

More than 2.18 million people affected by two Flagstar Bank data breaches have until August 11, 2026, to file a claim under a proposed $31.5 million class-action settlement.

Eligible consumers may receive up to $25,000 for documented financial losses, an estimated residual cash payment of about $60 and three years of credit monitoring. Approximately 364,000 California residents may also qualify for up to $100.

The $25,000 figure is not an automatic payout. It is the maximum reimbursement available to claimants who provide evidence of losses reasonably connected to the breaches.

What happened in the Flagstar data breaches?

The settlement concerns two cyberattacks in 2021. A January incident involving a file-sharing platform affected information associated with approximately 1.47 million people. A separate December attack on Flagstar’s network involved around 1.58 million people.

Some individuals were involved in both incidents. After accounting for that overlap, the settlement class contains approximately 2,187,170 US consumers.

The lawsuit, Angus et al. v. Flagstar Bank, N.A., alleged that Flagstar failed to protect personal information adequately and delayed notifying affected consumers. Flagstar denies wrongdoing, and the court has not ruled that the bank is liable.

Who qualifies for the settlement?

A person qualifies if Flagstar identified their information as affected by one or both breaches. Current customers, former customers and other individuals may be eligible, but having a Flagstar account alone does not establish eligibility.

The administrator sent notices by email or mail. The Settlement Claim ID appears above the recipient’s name in the email or above the name and address on a postcard.

Anyone who lost the notice can call 1-855-542-0397 or email info@FlagstarSettlement.com. Written questions can be sent to Flagstar Settlement Administrator, P.O. Box 4427, Baton Rouge, LA 70821.

Which losses can qualify for $25,000?

Eligible expenses may include unreimbursed fraud, identity-theft losses, legal or accounting fees, credit-repair services, credit freezes, credit monitoring, postage, copying, mileage and other costs connected to addressing the breaches.

Claimants should submit receipts, invoices, account statements or other independent records. Handwritten or self-prepared documents are insufficient by themselves. The administrator will decide whether each loss is adequately documented and traceable to the incidents.

The difference between a standard cash benefit and reimbursement requiring evidence also appeared in the Avis data breach settlement for affected customers.

How much is the residual cash payment?

Class members may request a residual cash payment without documenting financial harm. It is estimated at approximately $60 and cannot exceed $599, but neither amount is guaranteed.

The final payment will depend on how much remains after approved losses, California benefits, monitoring services, legal fees and administrative expenses are paid. Benefits may be reduced if valid claims exceed the available fund.

California class members may claim up to $100 by attesting that they lived in the state when the breaches occurred. Proof of residency is generally unnecessary unless requested.

What does the credit monitoring include?

The settlement offers three years of monitoring across Equifax, Experian and TransUnion. It includes dark-web monitoring, identity-restoration assistance, lost-wallet support and up to $1 million in identity-theft insurance.

Credit monitoring can be selected alongside cash benefits. This case is separate from the 2026 Equifax settlement involving duplicate collection-account reporting, and qualifying for one does not establish eligibility for the other.

How to file before August 11

Claims can be submitted through the official Flagstar settlement website. Online forms must be submitted by August 11, 2026, while mailed forms must be signed and postmarked by that date.

The short form included with some notices can be used for the residual payment, monitoring and California benefit. Anyone seeking reimbursement for documented losses must complete the full form and attach supporting evidence.

Filing is free. Consumers should avoid unofficial services demanding payment or requesting sensitive information outside the authorized claim process.

When will payments arrive?

A final approval hearing is scheduled for October 1, 2026, at 9:30 a.m. Eastern Time. No payment date has been confirmed.

Payments can be distributed only after final approval, claim processing and the resolution of any appeals. Appeals could delay distribution for more than a year. Approved claimants may select an available electronic payment method or paper check.

The June 29 deadlines to object or opt out have passed. Anyone who does nothing will receive no benefits and, if the settlement becomes final, will generally surrender the right to bring another lawsuit over the claims resolved by this case.

Consumers whose information was compromised should continue checking financial accounts, consider placing a credit freeze or fraud alert and report suspected identity theft to the Federal Trade Commission.

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