Nissan customers could be eligible for compensation soon. Here's why that's happening

A Nissan logo is seen on a car at its showroom in Tokyo, Feb. 21, 2023. (AP Photo/Shuji Kajiyama, File)

Nissan customers in Canada may soon be eligible to file a claim in a proposed $1.82 million class action settlement resulting from a 2017 data breach.

The settlement was negotiated after two respective lawsuits filed in Ontario and Quebec in 2018 alleged that the manufacturer was liable for the breach.

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Nissan denies the allegations, none of which have been tested in court. Instead, the parties opted to negotiate a settlement.

Here’s what you need to know.

The data breach

According to Nissan, the breach took place in December 2017.

The next month, customers were issued letters informing them of the breach and that their private data may have been exposed. According to lawyers representing the plaintiffs, that letter did not explain how or when exactly the breach occurred.

Personal information involved included names, addresses, credit scores, vehicle makes and models, vehicle identification numbers, loan amounts, and monthly payments.

At the time, Nissan said it contacted Canadian privacy regulators, law enforcement, and data security experts to help investigate the breach.

It also offered customers who may have been affected 12 months of credit monitoring services.

What’s next?

Before class members can claim part of the nearly $2 million settlement, it must first be approved by the courts.

Ontario’s Superior Court of Justice has scheduled its approval hearing for April 24. A date has yet to be set for the hearing in Quebec.

Who in Ontario would be eligible for payment, if approved?

Unlike the Quebec lawsuit which solely targeted Nissan Canada Inc., the Ontario matter named Nissan Canada Inc., Nissan Canada Financial Services Inc., and Nissan North America, Inc.

If the settlement is approved, anyone who held active leases or loans with the three companies listed between Dec. 22, 2016 and Jan. 12, 2017 would be eligible for payment.

In that case, class members can apply to receive up to $2,500 each.

First, they will have to file a “documented claim,” proving their eligibility and demonstrating the damages, costs, or losses incurred.

If they lack the needed evidence to prove eligibility and damages, members would also have the option to file an “undocumented claim,” in which they could see $35 in reimbursement paid to them.

If approved, members can file claims on the websites of the law firms involved.