DEBT DISASTER
Americans have hours left to grab $11,500 payment from $2.45m data breach settlement – check to see if you’re eligible
Social Security numbers were compromised.
A DEBT collection agency has agreed to pay out a total of $2.45 million over a data breach.
Applications to receive payments worth up to $11,500 close today.
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Convergent Outsourcing, a debt collection agency that represents creditors from various industries, is paying out a total of $2.45 million following a class action lawsuit.
According to the lawsuit, the company failed to prevent a 2022 data breach.
Social Security numbers, financial account information and other sensitive data were compromised as a result of the breach.
Plaintiffs in the case argued that Convergent Outsourcing failed to take reasonable cyber security measures.
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Although the company has not admitted any wrongdoing, it has agreed to a hefty settlement.
Under the terms of the settlement, class members can receive up to $1,500 for ordinary data breach losses such as fraud or identity theft damages, credit expenses, bank fees, communication charges, travel expenses.
Lost time will be compensated at a rate of $30 per hour for a maximum of 10 hours.
However, those who suffered extraordinary losses can claim even more.
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Up to $10,000 is being awarded per claimant if they can prove they experienced identity theft damages, fraudulent damages, falsified tax returns or other misuses of personal information as a result of the breach.
If you are eligible for a payment, you should have been notified by Convergent Outsourcing that your information may have been compromised in a data breach discovered June 17, 2022.
The deadline to file a claim is June 19.
Claims can be submitted via an online form.
Proof of losses is required to get a payment, such as bank statements, phone bills, account statements, receipts, invoices, tax returns, police reports and other documentation.
Please note, all claims are submitted under penalty of perjury.
All about Convergent Outsourcing
Convergent Outsourcing is a debt collection agency, used by creditors from various industries
Companies that use Convergent Outsourcing to get bills paid include hospitals and health systems, financial institutions, retailers, telecommunications, cable, utilities, and commercial creditors.
However, Convergent Outsourcing has an "F" rating with the Better Business Bureau due to the number of complaints about harrassing phone calls and other wrongdoings.
In 2021, the state of Washington successfully sued the company over misleading letters it sent to Washingtonians.
Convergent Outsourcing paid out a total of $1.675 million as a result of the lawsuit, with some individuals receiving up to $20,000.
OTHER CLASS ACTION PAYMENTS
Convergent Outsourcing is not the only company paying up as a result of a class action llawsuit.
Capital One has agreed to a $16 million settlement following a lawsuit over unlawful fees.
The bank has agreed to the payments to settle claims it charged unlawful fees for return checks or ACH debit transactions.
Both current and former Capital One account holders could benefit from the settlement.
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Meanwhile, a telecom company is paying out a $2.2 million settlement.
And an NFL team is giving $1.3 million back to fans.