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On Q Financial, LLC, an Arizona-based financial firm, has agreed to a $1.25 million class action settlement to resolve allegations surrounding a February 2024 cyberattack that exposed customer names and Social Security numbers.
Arizona-based mortgage lender On Q Financial, LLC has agreed to pay $1.25 million to resolve a class action lawsuit stemming from a early 2024 data breach that exposed clients’ sensitive personal information, including names and Social Security numbers.
If your private financial or personal information was impacted during the February 2024 security incident, you may be eligible to receive a direct cash payment of up to $5,000 for documented losses, an alternative pro-rata cash payout, and free credit monitoring services. The lawsuit alleges that the company failed to implement reasonable cybersecurity safeguards to shield customer records from unauthorized third parties. On Q Financial denies all claims of wrongdoing, maintaining that it handled its data security obligations appropriately, but agreed to the $1.25 million fund to bring an end to further litigation costs.
ClassActionU.org breaks down what happened during the incident, who is affected by the proposed settlement, what compensation options are on the table, and the critical deadlines you must meet to secure your settlement benefits.
The lawsuit centers on a security event that took place on or around February 20, 2024. According to court filings in Maricopa County Superior Court, unauthorized actors gained access to internal computer files belonging to On Q Financial, LLC. Upon breaching the system, the intruders were able to access sensitive client files containing Private Information.
Among the sensitive records compromised were customer names paired with Social Security numbers—a combination that presents a severe, long-term risk of identity theft and financial fraud. For mortgage applicants and financial clients, a compromised Social Security number is particularly dangerous because it allows fraudsters to open unauthorized lines of credit, file fraudulent tax returns, or manipulate existing financial accounts.
To resolve the class action lawsuit without a trial, On Q Financial has agreed to deposit $1,250,000 into a non-reversionary settlement fund. This money will be used to pay valid class member claims, credit monitoring services, administrative costs, service awards for the named plaintiffs, and court-approved legal fees. Under the terms of the agreement, up to $437,500 will cover attorneys’ fees, while $10,000 is designated for class representative service awards.
The creation of a common fund ensures that affected consumers do not have to fight individual legal battles against corporate defendants. Instead, everyday people can submit a claim online or by mail to draw from a shared pool of financial recovery.
It is common in major consumer data breach cases for companies to deny liability while simultaneously funding a settlement. Settling allows the firm to avoid prolonged legal expenses, potential exposure to higher damages at trial, and public scrutiny, while offering affected consumers tangible compensation and identity protection services immediately.
The On Q Financial settlement provides two distinct categories of monetary compensation, alongside non-monetary credit protection tools. Class members can evaluate their personal situation to determine which payout structure best fits their losses.
If you suffered actual financial harm or incurred expenses directly linked to the February 2024 data breach, you can apply for reimbursement of up to $5,000. Examples of reimbursable expenses typically include:
Unreimbursed bank charges, fraudulent fees, or unauthorized account withdrawals.
Fees paid for credit reports, credit freezes, or credit monitoring services purchased after the breach.
Out-of-pocket expenses for postage, copying, or legal help to restore your identity.
Documented time spent rectifying identity theft or addressing fraud (reimbursed at an agreed hourly rate).
To claim reimbursement under this tier, you must provide supporting documentation such as bank statements, receipts, credit bureau notices, or police reports verifying the expenses.
If you did not incur documented monetary losses or prefer not to gather paperwork, you can opt for an alternative flat cash payment. While this option is estimated at roughly $50 per person, the final check amount will be determined on a pro-rata basis depending on the total number of valid claims submitted by eligible class members. If claim rates are high, individual checks may decrease; if participation is low, the payout per person could increase.
Every settlement class member, regardless of whether they choose documented loss reimbursement or the flat cash payment, is entitled to sign up for one year of free single-bureau credit monitoring. This benefit includes real-time notifications regarding suspicious activity on your credit file, as well as up to $1 million in identity theft insurance coverage to shield you from future cybercrime threats.
Data security litigation relies heavily on established common law principles and statutory consumer protection rules. When financial companies collect highly personal information—such as Social Security numbers, employment records, and loan histories—they owe a duty of care to implement industry-standard safeguards.
When a breach occurs, consumers often bring claims under state consumer protection statutes, negligence laws, and breach of implied contract theories. In many states, legislation obligates institutions that handle financial records to maintain reasonable data security standards, encrypt sensitive data both at rest and in transit, and notify impacted individuals without unreasonable delay.
By bringing class action litigation, affected consumers aggregate individual claims that might otherwise be too small to pursue independently in court. This legal vehicle levels the playing field between large financial institutions and everyday citizens, ensuring corporations are held accountable when sensitive data falls into the hands of cybercriminals.
You may be eligible to participate in the settlement if you received an official notice from On Q Financial, LLC, or if your personal information was compromised during the data security incident that occurred on or around February 20, 2024.
Members of the settlement class typically include current and former clients, mortgage applicants, or co-signers whose names and Social Security numbers were stored on On Q Financial’s impacted network systems during the time of the cyberattack.
If you received a data breach notification letter from On Q Financial regarding the incident, you are almost certainly a member of the settlement class. If you did not receive a letter but believe your records were stored by On Q Financial during this period, you can check your eligibility through the official settlement website or by contacting the court-appointed settlement administrator.
If you are an affected consumer, paying close attention to court-mandated deadlines is crucial. Missing a filing deadline will cause you to forfeit your rights to receive monetary compensation or free credit monitoring.
Opt-Out / Exclusion Deadline (September 28, 2026): If you wish to keep your right to sue On Q Financial individually regarding these data breach claims, you must formally opt out in writing by September 28, 2026. Opting out means you will receive no cash or credit monitoring benefits from this settlement.
Objection Deadline (September 28, 2026): If you remain in the settlement class but disagree with any terms of the settlement, attorneys’ fees, or service awards, you must file a formal objection with the court by September 28, 2026.
Claim Form Submission Deadline (October 28, 2026): To receive a cash payment of up to $5,000, an alternative pro-rata check, or free credit monitoring, you must complete and submit a valid claim form online or postmark it by October 28, 2026.
Final Approval Hearing (November 16, 2026): The Maricopa County Superior Court will hold a final fairness hearing on November 16, 2026, to determine whether the proposed $1.25 million settlement is fair, reasonable, and adequate for class members. If approved, payments and credit monitoring enrollment codes will be distributed following any potential appeals.
Don’t stand alone when dealing with corporate data exposure. If your information was swept up in the On Q Financial data breach, taking prompt action ensures you claim the restitution and credit protection tools you are owed.
Here is how you can protect yourself and secure your settlement rights today:
Submit Your Claim Form: Visit the official On Q Financial Settlement Website or mail a paper claim form prior to the October 28, 2026 deadline. Select whether you are seeking documented out-of-pocket expenses up to $5,000 or the alternative pro-rata cash payment.
Enroll in Credit Monitoring: Sign up for the free 1-year credit monitoring service as soon as your claim code is issued. This provides an extra layer of defense against potential identity theft.
Monitor Your Accounts: Place a fraud alert or credit freeze on your credit reports with major credit bureaus (Equifax, Experian, and TransUnion), and review your monthly bank and mortgage statements carefully for unauthorized charges.
Know Your Options: Remember that you have no obligation to reach out or participate, but exercising your rights under class action settlements ensures companies are held accountable for consumer data safety.
If you have questions visit ClassActionU.org for updated guidance on active data breach litigation.
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