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 and any violations of the Fair Credit Reporting Act. The settlement is a compromise of disputed claims; the court has not decided which side is right.
The proposed $100 million settlement is the largest in history related to the Fair Credit Reporting Act, according to David Berger, an attorney appointed to co-lead the case.
What the Equifax Settlement Covers
The lawsuit claims a coding error in one of Equifax’s computer systems led the credit bureau to report inaccurate credit information to lenders, insurers and other companies. In some cases, Equifax allegedly lowered scores by more than 20 points, which may have caused lenders to deny credit or charge consumers higher interest rates.
Equifax and the plaintiffs agreed to settle to avoid the risk, expense and delay of further litigation, including a trial and appeals, according to the settlement website. A final fairness hearing is scheduled for Jan. 22, 2027.
Who May Qualify for a Payment
People may be eligible if Equifax incorrectly reported a credit score or credit attribute because of the coding issue between March 17 and April 8, 2022. About 4 million Americans may be part of the settlement class.
The judge overseeing the case ordered in August that class members be notified by email or mail. The settlement administrator can be reached at [email protected]. The settlement website also explains how to opt out.
How Much You Could Receive
Estimated payments range from $95 to $280, though the actual amount could be higher or lower, according to the settlement website.
To receive a payment, you must submit a claim by Dec. 28. You can file online through the settlement website or download a claim form and mail it to the Settlement Administrator at Equifax FCRA Litigation, P.O. Box 301132, Los Angeles, CA 90030-1132.
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