Equifax Settlement Payouts Could Be Up to $280. Check Whether You’re Among the 4 Million Eligible

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Equifax has reached a $100 million agreement to resolve a class-action lawsuit that says a coding mistake led the credit reporting company to provide inaccurate information about roughly 4 million consumers to lenders and other businesses in 2022. According to the lawsuit, the error reduced some consumers’ credit scores by more than 20 points, which may have contributed to loan rejections or higher borrowing costs.

Attorney David Berger, who represents consumers in the case, said the proposed deal is the biggest settlement ever tied to the Fair Credit Reporting Act (FCRA). That federal law requires credit reporting agencies to use reasonable procedures to ensure their reports are as accurate as possible.

“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 allegations and any breach of the FCRA.

Who is eligible for the Equifax settlement?

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

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

How much could be paid?

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

How to submit a claim

Claims can be filed online through the official settlement website or by printing a paper form and mailing it to the settlement administrator.

People who want to opt out of the settlement or object to its terms must do so by the stated deadline. Opting out means giving up any settlement payment, but it preserves the ability to bring a separate legal claim against Equifax over the coding error.

Anyone who takes no action will not receive a payment. If the settlement is granted final approval, however, that person will still be bound by its terms and will generally give up the right to sue Equifax separately over the matter.

Payments will not be issued until the settlement receives final court approval.