LoanDepot, a major non-bank mortgage lender, agreed to a $1.025 million class action settlement over allegations tied to how it handled recurring electronic payments from customers’ bank accounts. The case focuses on “preauthorized electronic funds transfers” (often used for automatic monthly payments), and the claim period covers debits made between Sept. 21, 2021, and Oct. 6, 2023. According to the lawsuit, some consumers’ accounts were debited on a recurring basis without being provided a copy of the written authorization for those transfers, a documentation step meant to help people verify, track, and dispute autopay arrangements. The lawsuit was filed because plaintiffs allege this practice violated the federal Electronic Funds Transfer Act (EFTA)—implemented through Regulation E—which sets rules for authorization, disclosures, and consumer protections for electronic debits, as well as California’s Unfair Competition Law (UCL), which can apply when business practices are alleged to be unlawful or unfair. While LoanDepot did not admit wrongdoing, the settlement creates a common fund to compensate eligible customers who submit timely claims (by March 3, 2025), with payments distributed on a pro rata basis after fees and administrative costs, underscoring how procedural compliance—like providing required authorization copies—can be as legally significant as the underlying payment itself. More broadly, this dispute fits into a larger wave of consumer financial cases targeting companies that use autopay, subscriptions, or recurring ACH debits but allegedly fall short on clear consent and recordkeeping. Similar EFTA/Regulation E cases across industries often hinge on whether authorization was properly obtained, retained, and shared, because those requirements support consumers’ rights to stop payment, challenge unauthorized transfers, and obtain error resolution—protections that become especially important as lenders and servicers increasingly rely on automated payment systems to reduce delinquencies and processing costs.