Equifax class action lawsuit overview:
- Who: Equifax agreed to pay $100 million to resolve claims it inaccurately reported consumers’ credit scores.
- Why: Equifax allegedly improperly reported consumers’ credit scores due to a coding error in 2022.
- Where: The Equifax class action lawsuit was filed in Georgia federal court.
Equifax agreed to pay $100 million to resolve a class action lawsuit claiming the company inaccurately reported consumers’ credit scores due to a coding error in 2022.
The $100 million settlement is reportedly the largest Fair Credit Reporting Act (FCRA) settlement ever achieved, according to a motion for preliminary approval of the deal filed on Aug. 12 in Georgia federal court.
The Equifax class action lawsuit was filed by consumers who claim the company inaccurately reported their credit scores to lenders due to a three-week coding error in 2022.
According to the Equifax class action lawsuit, a coding error in Equifax’s systems between March 17, 2022, and April 8, 2022, caused certain credit scores and attributes to differ from what they would have been under accurate calculations.
The settlement class includes about four million individuals whose credit information was affected and reported to a third party during that period.
Equifax denies liability for credit score error
Equifax denied liability for the alleged credit score error and said the settlement is a compromise of disputed claims.
“The vast majority of scores during the three-week period of the 2022 coding issue did not change, and a large number had a positive shift,” an Equifax spokesperson told Law360.
The Equifax settlement fund is nonreversionary, meaning any unclaimed funds will not return to Equifax.
Eligible class members who submit a valid claim within 90 days of the court-approved notice date will receive a pro rata share of the net settlement fund after attorney fees, costs and administrative expenses are deducted, according to the motion.
In another class action settlement, Equifax agreed to pay $2.2 million to resolve claims that it violated the FCRA by reporting the same collection account multiple times on consumers’ credit reports.
What do you think about the Equifax credit score error settlement? Join the discussion in the comments.
The plaintiffs are represented by Michael Caplan, Ashley Brown and Katherine Gamsey of Caplan Cobb LLC; Amy Keller and Justin Hawal of DiCello Levitt LLP; Eric Gibbs and David Berger of Gibbs Mura LLP; and Dena Sharp, Adam Polk and Jordan Elias of Girard Sharp LLP.
The Equifax class action lawsuit is In re: Equifax Fair Credit Reporting Act Litigation, Case No. 1:22-cv-3072, in the U.S. District Court for the Northern District of Georgia.
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