Flagstar Bank has agreed to pay $31.5 million to settle a class action lawsuit stemming from two major data breaches that occurred in 2021. If you were a Flagstar Bank customer, there is a good chance your personal information was exposed — and you may be entitled to cash compensation, reimbursement for losses, and free credit monitoring. The claim deadline is August 11, 2026.
This guide covers everything you need to know: what happened, who qualifies, how much you can get, and exactly how to file your claim. For a quick overview of how data breach settlements work in general, see our data breach settlements guide.
What Happened at Flagstar Bank?
Flagstar Bank, one of the largest bank and mortgage servicers in the United States, suffered two separate cyberattacks in 2021. The first breach occurred in January 2021 and the second in December 2021. Together the two breaches compromised the personal information of approximately 2,187,170 current and former customers and employees across the United States.
The breached data included names, Social Security numbers, dates of birth, addresses, phone numbers, email addresses, financial account information, and in some cases mortgage loan information. The December 2021 breach was connected to a vulnerability in the Accellion file transfer software — the same vulnerability that simultaneously affected dozens of other major companies including universities, healthcare systems, and financial institutions.
A federal class action lawsuit was filed alleging that Flagstar failed to adequately protect customer data and delayed notifying affected individuals after the breaches. The case — formally known as Angus et al. v. Flagstar Bank, N.A. — was filed in the United States District Court for the Eastern District of Michigan. After years of litigation, Flagstar agreed to pay $31.5 million to settle. The court granted preliminary approval on February 20, 2026.
Who Qualifies for the Flagstar Settlement?
You may qualify if you are a current or former Flagstar Bank customer or employee whose personal information was compromised in either the January 2021 or December 2021 data breaches. The settlement class consists of approximately 2,187,170 individuals, including approximately 364,000 California residents.
You should have received a settlement notice by mail or email containing your unique Settlement Claim ID. This ID is required to file a claim. If you received a notice but cannot find it, contact the settlement administrator at 1-855-542-0397.
You do NOT qualify if you are a Flagstar officer, director, or entity with a controlling interest in Flagstar, a judge or judicial officer presiding over the case, or if you validly opt out of the settlement by June 29, 2026.
How Much Will You Get From the Flagstar Settlement?
The settlement offers three tiers of compensation:
Tier 1 — Documented Monetary Losses (up to $25,000)
If you can document out-of-pocket expenses caused by the breach — such as fraudulent bank charges, costs for credit monitoring services you purchased, professional fees for identity theft recovery, or time spent dealing with fraud at $25 per hour — you can claim reimbursement up to $25,000. Supporting documentation such as receipts, bank statements, and invoices is required.
Tier 2 — Residual Cash Payment (estimated ~$60, up to $599)
If you do not have documented losses, or prefer not to submit documentation, you can claim a flat cash payment estimated at approximately $60. No proof of losses is required for this option — just your Settlement Claim ID. The actual amount could be higher or lower depending on the total number of valid claims filed. The maximum possible residual payment is $599 per person.
Tier 3 — Free Credit Monitoring (3 years)
All eligible class members can enroll in three years of free three-bureau credit monitoring at no cost regardless of which payment tier they choose.
California Residents: If you lived in California at the time of the breaches, you may also claim an additional statutory payment of up to $100 under the California Consumer Privacy Act. No residency documents are required — you simply attest under penalty of perjury that you were a California resident.
How to File Your Flagstar Settlement Claim
Filing is free and takes approximately 5 minutes. Here are the steps:
Step 1: Locate your Settlement Claim ID. Check your mail and email for a notice from the Flagstar Settlement Administrator. Your unique Claim ID is printed on this notice and is required to file.
Step 2: Go to the official settlement website. Visit the court-approved Flagstar settlement website to access the online claim form. Do not file through any third-party site that charges a fee — filing is always free. You can also review the full details on our Flagstar Bank settlement case page.
Step 3: Choose your compensation tier. Decide whether to claim the residual cash payment (no proof needed) or documented monetary losses (up to $25,000 with receipts). You can also enroll in free credit monitoring.
Step 4: Complete and submit the form. Fill in your personal information, your Settlement Claim ID, and your chosen compensation option. Submit the form online or mail it to the settlement administrator at: Flagstar Settlement Administrator, P.O. Box 4427, Baton Rouge, LA 70821.
Step 5: Wait for payment. The final approval hearing is scheduled for October 1, 2026. Payments will be distributed after the court grants final approval and any appeals are resolved. All checks must be cashed within 90 days of issuance.
Important Deadlines
- June 29, 2026 — Deadline to opt out of the settlement or file an objection
- August 11, 2026 — Deadline to file your claim (hard cutoff — no extensions)
- October 1, 2026 — Final approval hearing
What If I Lost My Settlement Notice?
Your Settlement Claim ID is required to file. If you lost your notice, contact the settlement administrator directly:
- Phone: 1-855-542-0397
- Mailing address: Flagstar Settlement Administrator, P.O. Box 4427, Baton Rouge, LA 70821
Should I Also Freeze My Credit?
Filing a claim compensates you for past harm. But the real long-term risk from a breach of this type — involving Social Security numbers and financial account information — is identity theft that can occur months or years after the breach. A credit freeze at all three bureaus (Equifax, Experian, and TransUnion) is free, takes about 10 minutes, and prevents criminals from opening new credit accounts in your name. It does not affect your existing accounts or credit score. Whether or not you file a claim, it is worth doing.
Conclusion
The Flagstar Bank settlement is one of the most significant data breach settlements currently open. If you were a Flagstar customer in 2021, take five minutes and file your claim before August 11, 2026. The $60 no-proof cash payment requires almost no effort. If you have documented losses, you could receive significantly more.
Check your eligibility and file at the official Flagstar settlement website or visit our Flagstar case page for a full breakdown. Questions? Contact the administrator at 1-855-542-0397. New to class actions? Start with our guide on how to find class action settlements you may qualify for.