Equifax Settlement Could Pay Up to $280 to Eligible Consumers

Equifax has agreed to pay $100 million to resolve a class-action lawsuit claiming a coding mistake caused the credit bureau to send incorrect information about roughly 4 million consumers to lenders and other companies. The alleged error may have reduced some credit scores by more than 20 points, possibly resulting in loan denials or higher borrowing costs.

According to consumer attorney David Berger, the proposed deal is the biggest settlement tied to the Fair Credit Reporting Act, or FCRA, to date. That law requires credit reporting agencies to use reasonable procedures to maintain the highest possible accuracy in the information they report.

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“Credit reporting agencies must be held accountable when they fail to take common-sense measures handling data that affects people’s livelihoods,” Berger said in a press release.

Equifax agreed to the proposed settlement while denying the claims and any FCRA violation.

Who can claim the Equifax settlement?

You may be eligible for a payment if Equifax reported inaccurate credit information about you to a third party because of the coding error during the relevant period in 2022.

People who qualify should have received notice of the proposed settlement by email or mail. If you believe you are eligible but did not get a notice, check your spam folder and visit the official settlement website for details.

How much could you get?

Consumers who file valid claims are expected to receive between $95 and $280, according to the settlement website. The final amount will depend on the number of valid claims filed and how much of the $100 million remains after court-approved attorneys’ fees, administrative expenses, and other settlement-related costs.

How to submit a claim

Claims can be filed online through the official settlement website or by downloading a paper form and mailing it to the settlement administrator. The deadline to submit a claim is by mail or online within the stated filing period.

If you want to opt out of the settlement or formally object, you must do so by the stated deadline. Opting out means you would forgo any settlement payment but keep the right to bring a separate legal claim against Equifax over the coding error.

Anyone who takes no action will not receive a payment. However, if the settlement is finally approved, they will still be bound by its terms and will generally lose the ability to sue Equifax separately over the issue.

The court is set to hold a final approval hearing later in the process, and payments will not be distributed until the settlement receives final court approval.