You could get a payment from Equifax's $100M settlement
Equifax customers may be eligible for a payment from the company's proposed $100 million settlement of a class-action lawsuit involving a 2022 error, in which the credit bureau reported incorrect credit scores.
Equifax agreed on Aug. 17 to the settlement of the lawsuit, originally filed in federal court in Atlanta in August 2022. The three plaintiffs listed in the lawsuit said Equifax reported incorrect credit scores on their behalf, which prevented them from getting loans, according to the settlement website.
The lawsuit alleges that between March 17, 2022, and April 6, 2022, Equifax misreported lowered credit scores for about 4 million Americans who applied for mortgages, auto loans or credit cards.
Equifax has agreed to the proposed settlement, while denying the allegations raised by the lawsuit or having committed any violations of the Fair Credit Reporting Act (FCRA).
The proposed $100 million settlement is the largest in history related to FCRA, according to David Berger, the attorney appointed to co-lead the case.
“We’re thrilled to have achieved this result for consumers after nearly four years of litigation," said Berger, a partner with the Oakland, California-based law firm Gibbs Mura, in a news release. "Credit reporting agencies must be held accountable when they fail to take common-sense measures handling data that affects people’s livelihoods."
What is the Equifax settlement about?
The lawsuit claims that a coding error in one of the credit reporting company's computer systems led Equifax to report inaccurate credit information to lenders, insurers and other firms. In some cases, Equifax lowered scores by more than 20 points, which may have been enough to cause lenders to deny credit or charge consumers higher interest rates, the lawsuit alleges.
Equifax and the plaintiffs have opted for a settlement "to avoid the risk, expense, and delay of further litigation, including trial and appeals," according to the settlement website. "Equifax denies that it violated the law. The settlement is a compromise of disputed claims."
The court did not decide which side is right. A final fairness hearing on the proposed settlement is scheduled for Jan. 22, 2027.
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Who's eligible for payment in the Equifax settlement?
Anyone who had a credit score or credit attribute incorrectly reported by Equifax because of the computer coding issue between March 17, 2022, and April 8, 2022. About 4 million Americans may be part of the class.
In August, the judge overseeing the case ordered that members of the settlement class be issued an email or mail notice about the proposed settlement. For more information, you may contact the settlement administrator at info@EquifaxFairCreditReportingSettlement.com.
You can also contact the attorneys representing the suing class; you will find them on the settlement website.
On the website, you can also get information on how to opt out of the settlement.
How much money can you get from the Equifax settlement?
Settlement payments are estimated at between $95 and $280, but the actual amount may be higher or lower, according to the settlement website.
To get a payment, you must submit a claim by Dec. 28. You can file a claim online on the settlement website.
You can also download a claim form from the website and mail it to the Settlement Administrator at: Equifax FCRA Litigation, P.O. Box 301132, Los Angeles, CA 90030-1132.
Mike Snider is a national trending news reporter for USA TODAY. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com.