Abraham Jewett  |  June 27, 2022

Category: Data Breach

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A Flagstar Bank sign on its office building in Detroit, Michigan, USA - class action, data breach
(Photo Credit: JHVEPhoto/Shutterstock)

Flagstar data breach class action lawsuit overview: 

  • Who: Scott Temple filed a class action lawsuit against Flagstar Bancorp Inc. and Flagstar Bank FSB. 
  • Why: Temple claims Flagstar failed to protect the personally identifiable information of its customers during a December 2021 data breach. 
  • Where: The class action lawsuit was filed in Michigan federal court. 

Flagstar Bank failed to secure the private and personally identifiable information (PII) of around 1.5 million of its customers during a December 2021 data breach, a new class action lawsuit alleges. 

Plaintiff Scott Temple claims Flagstar failed to “implement and maintain reasonable and adequate security measures to secure, protect and safeguard their PII against unauthorized access and disclosure.” 

“As a result of Flagstar’s inadequate security and breach of its duties and obligations, the Data Breach occurred, and Plaintiff’s and Class members’ PII was accessed and disclosed,” the class action states.

Flagstar class action alleges bank ‘owed a duty’ to protect customer PII

Flagstar “owed a duty” to its customers to protect their PII, yet failed to do so by allowing the breach to occur, the Flagstar class action alleges. 

Further, Temple argues Flagstar waited more than six month after the breach to begin notifying government agencies and the public directly it had occurred. 

To this day, Flagstar still has not posted a notice about the breach on its official website, according to the Flagstar class action. 

Flagstar customer information accessed by unauthorized persons in the breach included “at least their names and Social Security numbers,” according to the Flagstar lawsuit. 

Temple claims Flagstar is guilty of negligence, unjust enrichment and breach of implied and express contract, among other things, and in violation of the Utah Consumer Sales Practices Act.

He demands a jury trial and requests declaratory and injunctive relief along with monetary, statutory and punitive damages for himself and all class members. 

Temple wants to represent a nationwide class of individuals who had their PII accessed by unauthorized persons during the Flagstar data breach in December 2021. 

A consumer filed a separate class action lawsuit against Flagstar in March by a consumer claiming negligence by the bank and its then-file transfer service Accellion led to a “massive” breach

Was your personally identifiable information accessed during the Flagstar data breach? Let us know in the comments! 

The plaintiff is represented by Caleb Marker of Zimmerman Reed LLP; Ben Barnow, Anthony L. Parkhill and Riley W. Prince of Barnow and Associates PC; and Tina Wolfson, Robert Ahdoot and Andrew W. Ferich of Ahdoot & Wolfson PC. 

The Flagstar data breach class action lawsuit is Temple v. Flagstar Bancorp Inc., et al., Case No. 2:22-cv-11395, in the U.S. District Court for the Eastern District of Michigan.


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136 thoughts onFlagstar class action alleges bank failed to safeguard customer information in data breach

  1. Gail O'Neil says:

    My Mortgage was unknowingly SOLD & TRANSFERRED to Flagstar Bank WITHOUT my knowledge nor approval. Prior to my Mortgage being transitioned to Flagstar; I maintained a PERFECT Payment History for over 25yrs! When the Mortgage was moved; my Monthly Payment went to the prior Mortgage Company because I had NOT been informed of the transfer. At that time; Flagstar charged my Account an additional $35.00 Late Fee because my Mortgage Payment was sent to the prior Vendor instead of Flagstar. I called Flagstar. I attempted to reconcile the ONLY LATE FEE that has ever existed & charged against my account. The Flsgstar Rep stated that only the Supervisor could approve an adjustment. After speaking with the Supervisor; I was told that only the Manager could rescind the Fee & make an adjustment. To date; the Flagstar Bank Manager has failed to comply with my request to modify my account & REMOVE the $35.00 Late Fee. This charge still exists on my account due to my check being routed to the prior Vendor when the account was transferred WITHOUT my knowledge nor approval. I REFUSE to pay this Late Fee. During the time Flagstar Bank has held my Account; I’ve been afforded “Free” Credit Monitoring due to a Breach, despite Flagstar having NEVER sent me ANY type of Notification nor Remedy of my email address, Username & Password circulating on the “Dark Web”, which resulted in various different email, text & phone calls from solucitators, some of which are very offensively vulgar & sexual content. Following Flagstar’s lack of Good Customer Relations with an EXCEPTIONAL CUSTOMER WHO HAD NEVER MISSED A MORTGAGE PAYMENT AGREEMENT IN 25YRS; I experienced unfriendly, unnecessary & excessive processing fees simply to submit my Mortgage thru their online App that was frequently modified. I’m appalled & disgusted with Flagstar’s disregard for the appreciation of their customer’s loyalty! My Account has, AGAIN, since been SOLD & transferred from Flagstar Bank to another Vendor WITHOUT my knowledge nor approval. I NEVER received notice, in advance from Flagstar Bank, that this activity would be occuring. As a result; the $35.00 Late Fee has also been transitioned over to the new Vendor who indicates they will NOT rescrind the $35.00 Late Fee based on Flagstar’s Customer Account Notes?! I WILL NEVER AGREE TO PAY THIS FEE DUE TO EXTENUATING CIRCUMSTANTIAL REASONS!!!

  2. Jacob Zimmer says:

    My fiance has been affected and is now dealing with identity theft due to this. I would definitely like to be part of this.

  3. Brian & Jessica Ayers says:

    My husband & I would like to be included as we have also been affected.

  4. Dhameer Palmer says:

    I’ve been a victim of stole of stolen identity due this Flagstar company. I have my personal information stolen and sold constantly throughout the the black market due to previously having a open mortgage with this company in 2021 till they mischievously sold it off to hide the accountability. Since then this year has been a major depressing nightmare of fraudulent accounts opening up and much more I need help asap.

  5. Timothy BJones says:

    I have been hacked

  6. Savri Bhatt says:

    I did not get a letter yet, but someone has a filed a fraudulent tax return under my name and social security number, also I got a credit card from Green Dot bank, which we never requested. We are working with IRS to remove this tax return and with Green Dot bank, they have deleted my account.
    Please add me to this law suite, there is a lot of metal stress and pressure and leaving in a fear that someone would use my social security number.

    1. Heather Overholt says:

      I’VE BEEN HACKED BIG TIME.. please some one sign me up
      Heather

      1. Heather Overholt says:

        Yes please add me ASAP to this lawsuit and call me for further insight to my specific situation against this company 🙏🏻🙏🏻

  7. Ketankumar Bhatt says:

    I got a letter about my information has comprised, please add me to this law suite.

  8. Sarah Smith says:

    I got the letter in the mail about my name, date of birth, and social all breached, but hey I can have a year of credit monitoring if I want it.
    Please add me to this class action lawsuit.

  9. Joseph T. Manzo says:

    Credit score went from 833 to 710. A fraudulent loan was taken out in my name, and the guy wouldn’t make payments on it. So far Kroll has been no help and I have to try to clean up this mess by myself.

  10. Lynn Dressel says:

    I also received a letter about my information being breached. Please add me to the class action

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