Dealers and Drivers Warned After 700Credit Data Compromise; Law Firm Opens Investigation

How the incident came to light and what 700Credit says

In mid-December 2025 a legal notice from consumer law firm Edelson Lechtzin LLP said it is investigating claims that customer data managed by 700Credit, LLC was exposed in a security incident. 700Credit is a technology vendor that handles credit applications and related paperwork for auto dealers nationwide. The firm’s statement did not detail exactly when the breach happened but said the event affected some of the company’s systems and may have exposed customer records.

700Credit issued its own brief alert saying it identified unauthorized activity and launched an investigation, hired outside cybersecurity specialists, and notified law enforcement. The company also said it was taking steps to secure systems and inform potentially affected customers. At this stage public disclosures are limited, which is common in the early days after a vendor breach while forensic analysis is underway. Auto dealers relying on 700Credit use its software to pre-fill loan forms and run credit checks. The exact number of individuals affected has not been released.

Who might be affected and the kinds of data that could be exposed

700Credit works as a middleman between car buyers and lenders. That role means the company stores or transmits application forms, Social Security numbers, dates of birth, driver’s licenses, employment information, and vehicle details. When vendors like 700Credit are hit, the types of files exposed often include scanned IDs, credit reports, bank account numbers used for down payments, and internal logs that trace who accessed which files.

Edelson Lechtzin’s notice says the firm is investigating on behalf of customers whose data may have been compromised, implying personal identifying information is at risk. Dealer partners may also have had business contact lists and pricing data stored with the vendor. Vendors frequently hold broad sets of records across many dealers, so even a single breach can affect people in multiple states. Only a formal forensic report will show precisely which fields were copied or taken. Past vendor breaches show attackers sometimes sell entire databases to other criminals, raising the risk of identity theft or targeted fraud against people whose records were included.

Why Edelson Lechtzin LLP is investigating and what legal paths may follow

Edelson Lechtzin LLP is a consumer litigation firm that frequently files lawsuits over data breaches. Their notice is a signal that they believe a legal claim may be available for people whose personal information was exposed. In vendor breaches like this, plaintiffs’ lawyers generally look for evidence that the vendor failed to use reasonable security, breached contracts with dealer customers, or violated state data-breach and consumer-protection statutes.

If the firm files a lawsuit it could take the form of a class action, which lets many affected people pursue claims together. Class actions are often triggered when a company admits a breach that potentially exposes sensitive information, when notification letters go out, or when credit-monitoring offers are viewed as inadequate. Plaintiffs typically seek compensation for out-of-pocket losses and time spent fixing problems, as well as broader relief such as better security or free credit monitoring for the class.

Regulators can also get involved. State attorneys general and federal agencies may open parallel probes, and some states require companies to notify both affected people and regulators within strict timeframes. That regulatory pressure raises the odds of settlements or enforcement actions. For smaller businesses that relied on 700Credit, legal claims may involve contract and data handling disputes with the vendor. Multi-state exposure is common because vendors serve dealers across the country, raising complexity around which laws apply.

What this means day to day for customers and dealers

For consumers, the immediate worry is identity theft and fraud. If Social Security numbers, driver’s license scans or bank account numbers were exposed, criminals could open new accounts, file false tax returns, or attempt targeted scams that use personal details to seem convincing. People who recently financed a car through a dealer that used 700Credit should watch for unexpected bills, calls about accounts they do not recognize, and credit or tax alerts.

For dealer partners the breach could mean operational headaches. Dealers may need to rework application flows, notify customers, and spend time dealing with customer inquiries. Some dealers could face reputational damage if customers blame them for a vendor problem. Vendors’ downtime or tightened controls can slow the loan approval process, creating short-term disruptions to sales and financing.

Practical steps to take now and what to expect next

Affected people and small businesses should take immediate, practical steps. First, watch mail and email for any notices from 700Credit or your dealer and keep a record of communications. Second, check credit reports and consider placing a fraud alert or credit freeze if you see suspicious activity. Third, change passwords for dealer and finance portals, and turn on multi-factor authentication where available. Fourth, retain copies of any suspicious calls or documents and note dates and numbers. Fifth, ask your dealer whether they received a formal notice and what protections they are offering. Finally, expect additional updates as forensic work finishes and regulators weigh in — companies often follow with formal breach notices describing exactly what was exposed and next steps.

Sources

• prnewswire.com