Out-of-pocket losses
Out-of-pocket losses are money you actually spent because of the problem in a case and that no one paid back, such as fees or repair bills.
Also called: out-of-pocket expenses, unreimbursed expenses, out of pocket costs
Out-of-pocket losses are money you actually spent because of the problem in a case and that no one paid back, such as fees or repair bills.
What it means
Out-of-pocket losses are costs you paid yourself because of the problem at the center of a class action, and that no one paid back. Examples include bank fees, a replacement card fee, unreimbursed fraud charges, a repair bill, or the price of a product you had to replace.
The idea is simple: money that left your wallet or account. It does not cover stress or inconvenience. It also does not usually cover the time you spent sorting out the problem, which some settlements pay separately as a lost time payment.
Each settlement defines which expenses count. The notice may list categories, a time window and a cap per person. You normally need records that show what you paid, though some settlements ask for less proof when the amount is small.
What it means for you
If the problem cost you real money, an out-of-pocket claim can pay more than a standard payment. But it covers only what the notice lists and what you can show. Check the dates, the cap and whether the expense had to come after a specific event. Save statements and receipts, mark the charges tied to the case, and subtract anything you were already refunded. If you are not sure an expense counts, ask the administrator before you file.
Example
Say a settlement over a defective appliance lets owners claim out-of-pocket repair costs up to $300. You paid $180 for a repair visit and $40 for a replacement part. You attach both invoices, enter $220 on the claim form, and note that the manufacturer never reimbursed you.
FAQ
They are closely related. An out-of-pocket loss is money you spent. A documented loss is one you can prove with records. Most settlements want you to show both.
Sometimes, for smaller amounts. Many settlements want a receipt, invoice or statement for each expense. A bank or card statement can work when the receipt is gone. Check the claim form for what it accepts.
Related terms
- Federal Rule of Civil Procedure 23 and committee notes (Cornell LII)
- Federal Judicial Center, Judges' Class Action Notice and Claims Process Checklist and Plain Language Guide (2010)
- FTC, Equifax Data Breach Settlement page (example of out-of-pocket and time-spent payments)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.