⚖️Class Action Settlements & Your Money⚖️
Filing for Class Action Lawsuits and How to Receive their Benefits
Court’s in Session - Class Action 101
One of my favorite, random pieces of finance tidbits is utilizing Class Action lawsuits to my advantage. Class Actions won’t make you rich and is the adult equivalent of finding money in an old pair of pants, but that feeling is unmatched. With class actions, you could potentially be leaving money on the table that you didn’t even know you were entitled to. Let’s dive in with the definition:
A class action is a legal proceeding in which one or several plaintiffs bring a lawsuit on behalf of a larger group, known as the class. The judgment or settlement agreed to arise from the suit covers all members of the group or class, where penalties paid by the defendant are divvied up among class members. - Investopedia
Benefits of Filing for a Class Action
From the definition above, a group of people files against a separate entity for reparations of some sort of wrongdoing. For instance, I had learned that the popular apparel store, American Eagle, had sent me emails against me opting in to receive any sort of marketing promotion. I must’ve given them my email once for a quick 10% off or something like that.
Once I received the class action email, I quickly filed my claim and received $30 a year later. As I said, you won’t make a fortune off of these but they’re a great way to buy yourself an extra lunch or two.
When to Know When You’re Qualified
Class Action lawsuits will come into your email inbox once ready for filing. You may have seen them and completely dismissed them for spam, but let me tell you that they’re entirely real. Typically, the initial email will feature the word “Settlement” in the title.
A few quick safety precautions before you use the link provided within the email to share your info:
Check the email sender, they’re typically a recognizable email rather than a string of numbers and letters
A quick Google search will confirm if the settlement is real
A Real-World Example
In 2017, Equifax, one of the three largest credit reporting bureaus, incurred a credit hack that left millions of Americans’ information exposed on the web (my information included). It took nearly four years for the settlement and court to reach a verdict but it left Equifax with two options - pay class action defendants a sum of $20 or four years of free credit monitoring.
As I filed, I weighed the pros and cons of each option. I selected the four years of free credit reporting as my reparation because $20 is a small monetary value for the extra security the credit bureau would provide me. Having set up my account, I now receive daily credit monitoring across all my accounts at no additional cost. I take extra care to ensure that my identity is private and this will help service me if anything were to happen in the future.
Be sure to take advantage of your legal standings!
Have a great week - JT