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Guide · 5 min read

Got a settlement check in the mail? How to tell if it is real

A check shows up from a company you have never heard of, with a case name and a few dollars on it. Plenty of these are real. Settlements are paid out a year or more after people file, and some pay class members automatically. Fake checks exist too, so take five minutes to check before you cash it.

The 5-minute check

1. Find the case. Look for a case name (Smith v. Company), a settlement name, or the administrator, such as Kroll, Epiq, JND, Angeion, A.B. Data, or Simpluris.
2. Find the official site yourself. Search the settlement name and open its official settlement website. Do not use a link or QR code from the letter. Every settlement on PayoutDrop links to its official site.
3. See if payments went out. Official sites post updates when payments are issued. Our payout status log shows the latest status for each settlement we track, with the date we checked.
4. Call using the official number. If anything does not match, call or email the administrator using the contact details on the official site.
5. Never send money back. A real settlement check never comes with a request to return part of it, pay a fee, or buy gift cards.

Why you might get a check you did not file for

• Automatic payments. Some settlements pay people from the company's records. The Amazon return policy settlement, for example, says one subclass gets paid automatically without filing.
• An old claim. Payments come only after final approval and appeals, so a claim you filed long ago can pay out much later. See when settlement checks arrive.
• A second distribution. When money is left over, some settlements send a second round of payments.
• State unclaimed property. Some states mail checks automatically. Illinois' Enhanced Money Match mails checks for verified unclaimed cash, as the Illinois Treasurer explains.

Signs of a fake check

The FTC's guide to fake check scams lists the pattern: a stranger sends a check, often for more than expected, then asks you to send some back, buy gift cards, or wire money. Banks must make deposited funds available quickly, so money showing up in your account does not mean the check is good. It can take weeks for a fake to bounce, and you would owe the bank.

• A letter asking you to pay a fee or taxes before you can cash it
• Pressure to act today, or a phone number that does not match the official settlement site
• No case name, court, or administrator anywhere on the letter
• A check far larger than any settlement you could be part of

After you cash it

Keep the letter or stub for your records. If you are wondering about taxes, read are class action settlements taxable. If the check is lost or expired, see lost or expired settlement checks. Want more? Check the settlements open right now:

• TED Foundation: Data Privacy $5 · by Oct 26
• Pork Prices Varies · by Oct 29
• FinWise Bank: Data Breach Up to $5,000 · by Oct 29
• Trans Union: Consumer Reports $100 - $1,000 · by Oct 30
• Bestway: Above-Ground Pools $40+ · by Oct 30

Frequently asked questions

Why did I get a class action settlement check I did not file for?

Some settlements pay class members automatically from the company's own records, with no claim form. For example, the Amazon return policy settlement says one group of class members will receive a payment automatically. You may also have filed a claim long ago and forgotten, since payments often arrive a year or more after the deadline.

How can I tell if a settlement check is real?

Find the case name or settlement name on the check or the letter, search for the official settlement website yourself, and confirm the administrator and payment news there. Call the administrator using the phone number on the official site, not the number on the letter. A real settlement check never asks you to send any money back.

Is a class action settlement check taxable?

It depends on what the money replaces. Refunds of what you paid are often not taxable income, while some payments can be. See our guide on whether settlements are taxable and ask a tax professional about your situation.

Do settlement checks expire?

Usually yes. Many settlement checks say void after a set number of days printed on the check. If yours expired, contact the administrator. See our guide on lost or expired settlement checks.

What if the check is fake?

Do not deposit it. If you already did, do not spend the money or send any of it back to anyone, tell your bank, and report it at ReportFraud.ftc.gov.