$1.025M loanDepot Settlement Resolves Class Action Lawsuit Over Alleged Electronic Funds Transfer Violations

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A $1.025 million settlement has been reached to resolve a proposed class action lawsuit that claimed loanDepot.com debited funds from customers’ bank accounts on a reoccurring basis without providing a copy of their written electronic funds transfer preauthorization.

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The official website for the loanDepot class action settlement can be found at EFTASettlement.com.

The deal with loanDepot.com covers anyone in the United States whose bank account was debited on a reoccurring basis by the mortgage lender without being provided a copy of the authorization to make a preauthorized electronic funds transfer at any time between September 21, 2021 and October 6, 2023.

As part of the settlement, class members who submit a valid claim form online or by mail by March 3, 2025 will be eligible to receive a pro-rated share of the $1,025,000 settlement fund.

Individual cash payout amounts will depend on the total number of valid claims that are filed, the settlement website states.

To submit a loanDepot.com settlement claim form online, head to this page. Alternatively, you may download a PDF claim form to print and return by mail.

Per the website, you will need to provide your unique Settlement Claim ID, which can be found on the settlement notice you may have received via mail or email.

The loanDepot.com settlement was preliminarily approved by United States District Judge Richard B. Ulmer, Jr. on October 17, 2024. The parties now await a hearing scheduled for April 21, 2025 in San Francisco, at which the court will decide whether to grant final approval to the terms of the deal.

If the class action settlement is ultimately approved, loanDepot.com payouts will be issued by check within 30 days after the deal goes into effect, the settlement agreement shares.

The lawsuit against loanDepot.com, filed in March 2023, contended that the company violated the federal Electronic Funds Transfer Act by initiating reoccurring electronic funds transfers from consumers’ bank accounts without providing them with a copy of their written preauthorization to do so. The defendant’s allegedly unlawful conduct also breached California’s Unfair Competition Law, the class action suit asserted.

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