Over 620,000 Americans Could Get Cash or Debt Cancelled in $15M Bright Lending Settlement—No Claim Required

More than 620,000 Americans could receive cash payments or have outstanding loans cancelled under a proposed $15 million settlement involving online lender Bright Lending, with eligible borrowers not required to submit a claim form to receive relief.

The settlement covers approximately 624,623 borrowers, divided into two groups: people who repaid at least one qualifying Bright Lending loan and may receive cash, and those with qualifying unpaid loans who may be eligible for debt cancellation. Nevada and Utah residents are excluded from both groups, according to the settlement notice and court-related information.

The proposed agreement includes additional relief beyond cash payments and loan cancellations. For qualifying loans originated between 1st October 2020 and 31st December 2024, Bright Lending will request that consumer reporting agencies delete negative entries previously reported by the lender.

In addition, Bright Lending has agreed to stop collection activity on unpaid loans covered by the settlement and not sell those loans to third parties once the settlement becomes effective.

However, the settlement has not yet received final court approval. A hearing is scheduled for 19th January 2027, and benefits will become available only after the settlement becomes final and any appeals are resolved.

Insights Into Bright Lending Eligibility

The settlement establishes two categories of eligible borrowers, with different requirements for cash payments and debt cancellation.

The first group, known as the Monetary Relief Class, includes US residents outside Nevada and Utah who entered into at least one Bright Lending loan agreement between 1st October 2020 and 4th June 2026, and fully repaid at least one loan.

Court-related information estimated that around 180,926 borrowers fall in this category. Eligible members will receive a share of the $15 million settlement fund, calculated according to the amount of allegedly unlawful interest they paid above their loan principal.

Anyone in this group who did not pay allegedly excessive interest above the principal amount will receive a minimum payment of $15. The settlement does not promise every borrower the same payout, and individual amounts will depend on the applicable calculation.

The second group, known as the Debt Relief Class, covers US residents outside Nevada and Utah who took out a Bright Lending loan between 1st October 2020 and 31st December 2024, did not fully repay at least one qualifying loan, and are not members of the Monetary Relief Class.

Around 443,697 borrowers are estimated to fall into this category. Their qualifying outstanding loan balances will be cancelled if the settlement receives final approval and becomes effective. Note that some borrowers who qualify for cash payments may also be eligible for cancellation of a separate unpaid loan taken out during the debt-relief period.

No Claim Form is Required to Receive Benefits

Eligible borrowers do not need to file a claim to receive their settlement benefits. According to the official settlement website, payments and debt cancellation will be administered using the lender's records once finalised.

Cash payments will ordinarily be mailed as checks to the address on file. Borrowers who prefer electronic payments can select available methods, including ACH, Venmo, PayPal, or Zelle, through the official settlement website.

The deadline to update a mailing address or select an electronic payment method is 21st December. Borrowers who received a settlement notice can use the notice ID and PIN provided in that notice to access the relevant options.

Those who take no action do not automatically lose their eligibility for benefits. However, they should ensure that their mailing address is current if they expect to receive a check.

Why Bright Lending Is Paying $15 Million

The settlement resolves a class action lawsuit alleging that Bright Lending issued loans carrying interest rates that exceeded limits permitted under state laws.

The lawsuit was brought against BWDS, LLC, Benjamin Gatzke, and seven other individuals. The plaintiffs alleged violations of the federal Racketeer Influenced and Corrupt Organizations Act, the Illinois Consumer Fraud and Deceptive Business Practices Act, and the Illinois Predatory Loan Prevention Act.

The defendants deny wrongdoing and liability. The settlement is intended to resolve the dispute without the costs and uncertainty of continued litigation, and the court has not ruled on the underlying allegations.

Ultimately, the 21st December deadline is particularly important for anyone wishing to opt out of the settlement, object to its terms, update their payment address, or select electronic payment.