Bright Lending $15 Million Settlement, Who Gets Cash or Debt Cancellation in Dixon v. Gatzke

Borrowers who took out a loan from the online lender Bright Lending (Aaniiih Nakoda Finance, LLC) may be entitled to debt cancellation, a cash payment of at least $15, or both, under a $15 million class action settlement. The case is Dixon v. Gatzke, No. 1:24-cv-11834, before Judge Matthew F. Kennelly in the U.S. District Court for the Northern District of Illinois.

There is no claim form. If you are eligible, benefits are provided automatically after the settlement becomes final. But December 21, 2026 is the deadline to opt out, object, update your address, or choose an electronic payment. The final approval hearing is January 19, 2027.

Official links: Settlement website | Update address or payment method | Estimated award lookup

Bright Lending Settlement: Quick Facts

Item	Detail
Case name	Dixon v. Gatzke et al.
Case number	1:24-cv-11834
Court	U.S. District Court, Northern District of Illinois, Eastern Division
Judge	Matthew F. Kennelly
Lender	Aaniiih Nakoda Finance, LLC, doing business as Bright Lending
Settlement fund	$15,000,000 (cash payments); debt cancellation is separate
Lead plaintiffs	Curtis Dixon (Monetary Relief Class) and Paula Flamini (Debt Relief Class)
Class counsel	Berger Montague PC (John Albanese, Ariana Kiener)
Benefits	Cash payment (minimum $15) and/or cancellation of unpaid loan balances; collection stop; credit-reporting request; no sale of personal data for marketing
Who is excluded	Residents of Nevada and Utah
Claim form	None required
Official settlement website	brightlendingsettlement.com
Address update or electronic payment page	brightlendingsettlement.com/page/update-address
Deadline to opt out, object, update address, or choose electronic payment	December 21, 2026
Estimated award lookup	Check back around November 15, 2026
Final approval hearing	January 19, 2027, 9:00 a.m. Central (by telephone)
Status	Preliminary approval granted September 21, 2026; final approval pending

All defendants deny wrongdoing. The settlement is not a court finding that Bright Lending broke any law.

What the Dixon v. Gatzke Lawsuit Alleges

The plaintiffs say Bright Lending charged interest rates far above the limits set by Illinois and other state laws, and that the defendants are legally responsible for those loans. Earlier suits made similar claims, including a 2022 New Jersey complaint (Haremza v. Doe) that alleged annual percentage rates near 700% on small loans. Those are allegations in a separate case.

Who is being sued. The defendants are seven individuals affiliated with the Fort Belknap Indian Community (Taylor McCabe, William Bell, Lyolene Dillon, Jarrett Azure, Ticia Cliff, Doug Stuart, and Frank Doney), plus Benjamin Gatzke and his company BWDS, LLC. The court dismissed one defendant, Newport Funding LLC, for lack of personal jurisdiction in July 2025 and denied the remaining defendants’ motions to dismiss.

The case involves questions about state interest-rate limits, tribal lending arrangements, and the roles of nontribal individuals and businesses. The Fort Belknap Community Council approved the settlement on July 6, 2026.

Legal Background: Why Online Lending Cases Like This Are Complicated

You do not need to understand these rules to benefit from the settlement. They explain why the case was contested and why the release terms differ by class.

• State interest-rate limits. Illinois caps the annual percentage rate on most consumer loans at 36% under the Predatory Loan Prevention Act (815 ILCS 123), and other state laws, including the Consumer Installment Loan Act (205 ILCS 670), also limit what lenders can charge. Other states have their own usury laws.
• Tribal sovereign immunity. Tribes generally have sovereign immunity, including for some off-reservation commercial activity (Michigan v. Bay Mills Indian Community, 572 U.S. 782 (2014)). But immunity does not automatically protect individuals sued for their own conduct (Lewis v. Clarke, 581 U.S. 155 (2017)), and courts look at whether a lending entity is truly an “arm of the tribe” (for example, Williams v. Big Picture Loans, LLC, 929 F.3d 170 (4th Cir. 2019)). This is why the defendants here include individuals and a nontribal company, and why defendants have reserved arguments such as sovereign immunity and arbitration in individual cases.
• Federal “unlawful debt” claims. Cases against high-interest lenders sometimes also rely on the federal RICO statute, which covers collection of “unlawful debt,” including debt that is usurious at twice the enforceable rate (18 U.S.C. §§ 1961(6) and 1962). The settlement documents available to us do not say which claims were pleaded here, so this is background only.
• Class procedure. Federal Rule of Civil Procedure 23 governs class actions. Members of a damages class must be told they can opt out (Rule 23(c)(2)(B)), and the judge must find the settlement fair, reasonable, and adequate before approving it (Rule 23(e)(2)). Fee awards are reviewed under Rule 23(h), and objections are governed by Rule 23(e)(5). Under the Class Action Fairness Act, 28 U.S.C. § 1715, government officials must receive notice of the settlement.

Who Is Covered: Two Classes

You cannot belong to both classes. Residents of Nevada and Utah are excluded from both. If you received a notice, the defendants’ records show you are in one of them.

Monetary Relief Class (cash)

U.S. residents (other than Nevada and Utah) who:

• took out at least one Bright Lending loan between October 1, 2020 and June 4, 2026, and
• fully paid back at least one loan.

Bright Lending estimates about 180,926 people are in this class.

Debt Relief Class (cancellation)

U.S. residents (other than Nevada and Utah) who:

• took out at least one Bright Lending loan between October 1, 2020 and December 31, 2024,
• did not fully pay back at least one loan, and
• are not in the Monetary Relief Class.

The estimate is about 443,697 people.

Can you get both?

Possibly. A Monetary Relief Class member who also has a separate unpaid loan from October 1, 2020 through December 31, 2024 may get cash and also cancellation of that separate balance. Example: you fully repaid a 2022 loan but still owe a different 2024 loan. The administrator’s records and the full class definitions decide.

Related article: Ardent Health $2.9 Million Overtime Settlement, Who Can Join by December 18, 2026

What Each Class Gets

Monetary Relief Class: a cash payment from the $15 million fund, split pro rata based on how much alleged usurious interest each person paid above the loan principal. Anyone who paid no interest above principal receives $15, and no payment will be lower than $15.

Debt Relief Class: any outstanding balance on a covered loan is cancelled once the settlement is final. Class counsel estimated in its approval filing that the debt relief could exceed $300 million. That is counsel’s estimate of the total, not a guarantee for any one borrower and not part of the $15 million cash fund.

Both classes:

• Collections stop. Bright Lending will stop collection activity on covered unpaid loans and will not sell them.
• Credit reporting. Bright Lending will ask the credit bureaus to delete negative entries it reported on covered loans (originated October 1, 2020 through December 31, 2024). It is a request, not a guarantee. If an inaccurate item remains, you can dispute it with the bureaus under the Fair Credit Reporting Act (15 U.S.C. § 1681i).
• Data. Defendants agree not to sell class members’ personal information to third parties for marketing.

If you are contacted by a debt collector after your loan should have been cancelled, keep a record of the contact. Debt collectors are subject to the Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.), and you can file a complaint with the Consumer Financial Protection Bureau.

How Much Could You Get?

There is no fixed amount. The settlement website says estimates should be available around November 15, 2026. You will need your unique ID and last name from your notice.

The fund also pays attorneys’ fees (up to 33.33%, which is $4,999,500), costs, service awards of up to $10,000 for Dixon and $1,000 for Flamini, and notice and administration costs. The court decides the actual amounts.

Illustration only: if the court granted the full fee request and service awards, and administration costs were zero, about $10 million would remain for roughly 181,000 Monetary Relief Class members, an average near $55. That is our arithmetic, not an official estimate. Real payments will differ because they depend on interest paid, and the $15 minimum applies.

Taxes: Cash payments and cancelled debt may have tax consequences, and you may receive tax forms. Ask a tax professional.

Do You Need to Do Anything? Your Options by December 21, 2026

Your choice	What happens
Do nothing	You stay in the class and receive benefits automatically if you qualify. You are bound by the settlement and its release. Cash is mailed as a check to the address on file
Update address or choose electronic payment	Monetary Relief Class members can add a current address or pick ACH, Venmo, PayPal, or Zelle. Use the Notice ID and PIN from your notice
Opt out	You get no benefits, including cancellation, but keep the right to bring your own claims
Object	You stay in the class and tell the court why you disagree. You cannot object if you opt out

How to opt out

Mail your own signed letter, postmarked by December 21, 2026, to: Dixon v Gatzke (956), c/o Settlement Administrator, P.O. Box 23459, Jacksonville, FL 32241-3459. It must include the case name (Dixon v. Gatzke), your name, address, and phone number, the sentence “I request to be excluded from the class settlement in this case,” and your signature. No one can opt out for you, and mass exclusion requests are not allowed. If you have an unpaid loan eligible for cancellation, opting out removes you from the whole settlement, including the cancellation. You cannot keep one benefit and opt out of the other.

How to object

Send a written objection to the Clerk of the Court, 219 South Dearborn Street, Chicago, IL 60604, with a copy to the administrator, both postmarked by December 21. The official FAQ lists what to include, such as your Bright Lending account number if you know it and any prior class settlements you have objected to.

Keep your Notice ID and PIN private and use them only on the official site.

What You Give Up: The Release Differs by Class

This is the part many summaries miss.

• Monetary Relief Class members who receive a cash payment release all claims against the defendants and other released parties that arise from or relate to any Bright Lending loan, not only the loan that made you eligible. That includes claims you do not yet know about.
• Debt Relief Class members give up the right to join or bring a class action, mass arbitration, or other group proceeding over the claims. They keep the right to sue or arbitrate on their own, although the defendants have reserved defenses to any such individual claim, including arbitration and sovereign immunity.

The list of released parties is long. It includes the Fort Belknap Indian Community, Island Mountain Development Group, Bright Lending, and BorrowWorks entities. The full list is in the Settlement Agreement. If you are considering opting out, talk to a lawyer first, because opting out gives up all benefits and individual claims face their own deadlines and defenses.

When Will Payments and Debt Cancellation Happen?

Not until the settlement’s “Effective Date,” which comes only after the court gives final approval and any appeals are resolved. No payment date is confirmed. After the Effective Date, under the agreement:

• Debt cancellation and the credit-reporting request are due within 30 days.
• Checks or electronic payments are due within 60 days.
• Checks must be cashed within 120 days of the postmark date.

The defendants pay the fund in three installments: $100,000 for initial notice costs, $9.9 million within 35 days of the Effective Date, and $5 million by December 15, 2027 or six months after the Effective Date, whichever is later. If money remains after the first checks, the agreement provides for a second distribution to people who cashed their first check, if it would be more than $15 each. Any remainder goes to a charity the court approves.

Hearing: Judge Kennelly will consider final approval on January 19, 2027, at 9:00 a.m. Central by telephone. The official FAQ lists the call-in details. Confirm them on the Key Dates page, because the court can change the date or time. Do not expect checks right after the hearing, since appeals or other proceedings could delay the Effective Date.

Key Dates in Dixon v. Gatzke

Date	Event
October 1, 2020	Class period begins
November 18, 2024	Dixon files the lawsuit
July 2, 2025	Court dismisses Newport Funding LLC for lack of personal jurisdiction and denies remaining defendants’ motions to dismiss
May 21 and June 5, 2026	Mediation sessions
June 4, 2026	End of the Monetary Relief Class loan period
July 6, 2026	Fort Belknap Community Council approves the settlement
September 17, 2026	Settlement agreement and motion for preliminary approval filed
September 21, 2026	Court grants preliminary approval and authorizes notice
About November 15, 2026	Estimated award lookup expected
December 21, 2026	Deadline to opt out, object, update address, or choose electronic payment
January 19, 2027, 9:00 a.m. CT	Final approval hearing (telephonic)
After the Effective Date	Cancellation in 30 days; payments in 60 days

Who Are the Lawyers and How Do I Get Help?

Berger Montague PC is class counsel. You will not pay them separately, because any fees come from the settlement fund if the court approves them.

• Settlement administrator: 1-800-797-0699, or Dixon v Gatzke (956), c/o Settlement Administrator, P.O. Box 23459, Jacksonville, FL 32241-3459
• Class counsel: (612) 594-5999
• Do not contact the court, the judge, or the defendants with questions about the settlement.

Scam warning: Use only the official website and the contacts above. Be wary of anyone who asks for a fee, or for your bank details or Notice ID and PIN outside the official site.

Frequently Asked Questions

Is the Bright Lending settlement real?

Yes. It has a court-authorized website for Dixon v. Gatzke, No. 1:24-cv-11834. The court granted preliminary approval on September 21, 2026. Final approval is pending.

Do I need to file a claim?

No. Eligible class members receive benefits automatically.

What is the minimum payment?

$15 for Monetary Relief Class members.

I still owe money on a Bright Lending loan. What happens to it?

If it was taken out between October 1, 2020 and December 31, 2024 and meets the class definitions, the balance will be cancelled after the settlement becomes final, and collection will stop.

Will this fix my credit report?

Bright Lending will request deletion of negative entries on covered loans. The credit bureaus are not guaranteed to act.

Are Nevada and Utah residents covered?

No. They are excluded.

What is the deadline to change my payment method?

December 21, 2026. Use the official site and your Notice ID and PIN.

Does opting out let me sue Bright Lending?

Opting out preserves your right to bring your own claim, but you give up all settlement benefits, including cancellation. An individual claim is not guaranteed to succeed, and defendants have reserved defenses.

Can I get cash and debt cancellation?

Possibly, if you repaid one loan and have a separate qualifying unpaid loan.

When is the final approval hearing?

January 19, 2027, at 9:00 a.m. Central, by telephone.

When will I get paid?

No confirmed date. Payments are due within 60 days after the Effective Date, which comes only after final approval and the resolution of any appeals.

What Bright Lending Borrowers Should Do Now

1. Find your notice and keep your Notice ID and PIN safe.
2. Check back around November 15 for your estimated award.
3. Update your address or choose an electronic payment by December 21.
4. Decide before December 21 whether to stay in, opt out, or object, and read the release for your class first.

For related coverage of another consumer lending settlement, read our article: Navy Federal $250 Loan Fraud Settlement, Deadline Nov 29

About This Article

This article was researched and written by Israr Ahmad, a legal content researcher, from the official settlement website, the Settlement Agreement, the court’s orders, and the sources listed below. It reflects information available as of October 17, 2026. The official notice, agreement, and court orders control if anything here differs.

This article is general legal information, not legal advice. AllAboutLawyer.com is a consumer legal-information website, not a law firm, and the author is not an attorney. Consult a licensed attorney about your own situation and deadlines.

Sources

1. Official settlement website, Dixon v. Gatzke: https://www.brightlendingsettlement.com/
2. Official FAQs: https://www.brightlendingsettlement.com/page/faq
3. Official Key Dates: https://www.brightlendingsettlement.com/page/dates
4. Official Estimated Award Eligibility page: https://www.brightlendingsettlement.com/page/award
5. Official address update page: https://www.brightlendingsettlement.com/page/update-address
6. Official settlement documents: https://www.brightlendingsettlement.com/page/docs
7. Court-authorized long-form notice: https://www.americanlegal.com/request-document/9766b3458a4d9bbd4a1dbe3b998677ea
8. Stipulation and Agreement of Settlement, Dixon v. Gatzke, No. 1:24-cv-11834 (N.D. Ill.), Doc. 87-3, filed September 17, 2026: https://www.brightlendingsettlement.com/request-document/d5c99483d4b4b06c8d37b7275a94ac8e
9. Preliminary approval order, September 21, 2026: https://www.brightlendingsettlement.com/request-document/61401ccf2d3f3e728986023356e46985
10. Class Action.org, “Class Action Alleges Bright Lending, Montana Native American Tribe Behind High-Interest ‘Loansharking’ Enterprise” (Haremza v. Doe, D.N.J.): https://www.classaction.org/news/class-action-alleges-bright-lending-montana-native-american-tribe-behind-high-interest-loansharking-enterprise
11. Illinois Predatory Loan Prevention Act, 815 ILCS 123; Illinois Consumer Installment Loan Act, 205 ILCS 670 (verify current text at ilga.gov)
12. 18 U.S.C. §§ 1961 and 1962; 15 U.S.C. § 1681i; 15 U.S.C. § 1692 et seq.; 28 U.S.C. § 1715; Fed. R. Civ. P. 23(c)(2)(B), 23(e), 23(h)
13. Michigan v. Bay Mills Indian Community, 572 U.S. 782 (2014); Lewis v. Clarke, 581 U.S. 155 (2017); Williams v. Big Picture Loans, LLC, 929 F.3d 170 (4th Cir. 2019)