$15M Bright Lending unlawful loans class action settlement

Bright Lending agreed to a $15 million class action settlement to resolve claims it issued loans with interest rates that violated Illinois and other state usury laws.

The Bright Lending settlement benefits two classes of borrowers, namely a monetary relief class and a debt relief class.

The monetary relief class is made up of U.S. residents who entered into at least one loan agreement with Bright Lending between Oct. 1, 2020, and June 4, 2026, and who paid back at least one loan in full. This class excludes residents of Nevada and Utah.

The debt relief class is made up of U.S. residents who entered into at least one loan agreement with Bright Lending between Oct. 1, 2020, and Dec. 31, 2024, and who did not fully pay back at least one loan. This class excludes residents of Nevada and Utah.

According to the class action lawsuit, Bright Lending violated state usury laws by charging interest rates far exceeding the legal limit of 36% in many states. Plaintiffs in the case say these loans were illegal and that they are entitled to a monetary refund with interest.

Bright Lending is an online lender owned by the Fort Belknap Indian Community of Montana. As a tribal lender, it operates under tribal sovereignty, allowing it to provide subprime loans to consumers with poor or no credit.

Bright Lending has not admitted any wrongdoing but agreed to pay $15 million to resolve all allegations around unlawful loans.

Under the terms of the Bright Lending settlement, class members can receive a cash payment or debt cancellation depending on which settlement class they belong to.

Members of the monetary relief class can receive a cash payment based on a pro rata share of the alleged usurious interest they paid on their unlawful loans. Class members who did not pay any usurious interest will receive a minimum payment of $15. Exact payments will vary.

Members of the debt relief class can receive debt cancellation on any outstanding loans they took out between Oct. 1, 2020, and Dec. 31, 2024. Class members will owe nothing further on these loans.

In addition to providing cash rebates and debt cancellation on unlawful loans, Bright Lending will request the deletion of negative credit reporting tied to loans from the class period. The lender has also agreed not to sell class members’ personal information for marketing and to stop all collection activity on unpaid loans covered by the class action settlement.

The deadline for exclusion and objection is Dec. 21, 2026.

The final approval hearing for the Bright Lending settlement is scheduled for Jan. 19, 2027.

No claim form is required to benefit from the settlement. However, monetary relief class members must submit an electronic payment election by Dec. 21, 2026, to receive their payment electronically.

Who’s Eligible

The monetary relief class benefits U.S. residents who entered into at least one loan agreement with Bright Lending between Oct. 1, 2020, and June 4, 2026, and paid back at least one loan fully, excluding residents of Nevada and Utah.

The debt relief class benefits U.S. residents who entered into at least one loan agreement with Bright Lending between Oct. 1, 2020, and Dec. 31, 2024, did not fully pay back at least one loan and are not members of the monetary relief class. The debt relief class excludes residents of Nevada and Utah.

Potential Award

Varies

Proof of Purchase

N/A

Claim Form Deadline

12/21/2026

Case Name

Dixon v. Gatzke, et al., Case No. 1:24-cv-11834, in the U.S. District Court for the Northern District of Illinois

Final Hearing

01/19/2027

Settlement Website

BrightLendingSettlement.com

Claims Administrator

Dixon v. Gatzke (956)
c/o Settlement Administrator
P.O. Box 23459
Jacksonville, FL 32241-3459
[email protected]
800-797-0699

Class Counsel

John G. Albanese
BERGER MONTAGUE P.C.

Defense Counsel

Rob Roy Smith
KILPATRICK TOWNSEND & STOCKTON LLP

Brendan V. Johnson
ROBBINS KAPLAN LLP