ATLANTA, GA — Some consumers whose credit information was affected by a 2022 Equifax technology error could eventually receive compensation under a newly proposed $100 million class-action settlement involving the Atlanta-based credit reporting company.
The proposed agreement was filed in federal court in Atlanta and seeks to resolve years of litigation connected to a coding problem that affected certain credit scores and credit-related information provided by Equifax to lenders in 2022.
According to court filings reported by WSB-TV, the issue occurred during a period beginning in March 2022 and continuing into April 2022. Equifax has previously acknowledged that a coding problem affected the way some credit scores were calculated during that period.
The mistake became a major concern because credit scores are commonly used by banks and other lenders when deciding whether to approve consumers for mortgages, auto loans, credit cards and other forms of financing. In some cases, an incorrect score could potentially affect whether someone received credit or the terms and interest rates they were offered.
Under the proposed settlement, Equifax would establish a $100 million fund to address claims connected to the scoring issue. The agreement still must go through the court approval process before eligible consumers can receive settlement benefits.
Consumers who believe their credit was affected should watch for additional information explaining eligibility requirements, the claims process and important deadlines as the settlement moves forward.
The case is separate from Equifax’s widely known 2017 data breach settlement and other recent Equifax-related settlements. Consumers should be careful to determine which settlement applies to them before submitting information or responding to notices.
For people who applied for credit during the affected period in 2022, the proposed settlement could provide another opportunity to address financial harm allegedly connected to inaccurate credit information.
Additional details about how consumers can file claims and how much individual payments may be worth are expected as the settlement proceeds through the federal court approval process.
(Photo Illustration by Timon Schneider/SOPA Images/LightRocket via Getty Images)
No comments