Equifax class action claims company provided inaccurate credit scores

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Equifax credit score class action overview: 

• Who: An auto loan applicant has filed a class action lawsuit against Equifax Inc. 
• Why: The plaintiff says Equifax provided lenders with inaccurate credit scores for millions of applicants for credit.
• Where: The Equifax class action was filed in a Georgia federal court

Equifax gave lenders inaccurate credit score information for millions of consumers applying for credit for more than a month this year thanks to a glitch in its system, a new class action alleges.

Plaintiff Nydia Jenkins filed the complaint against Equifax Inc. on Aug. 3 in Georgia federal court, alleging violations of the Fair Credit Reporting Act (FCRA).

According to the lawsuit, from mid-March through April, Equifax suffered a glitch in its technology systems that led to potentially millions of consumers having incorrect credit scores reported to lenders. 

Jenkins said she applied for an auto loan and was pre-approved in January. 

However, her local Toyota dealership denied the auto loan in April after Equifax inaccurately reported her credit score with a 130-point difference from what it should have been, she claims.

As a result, Jenkins says, she applied for another loan that had less favorable rates, and now pays around $150 more monthly for her car loan payment than she would have had her initial loan application been approved.

Equifax knew of credit score reporting glitch, lawsuit alleges

The complaint says Equifax continued to report inaccurate credit scores even after the glitch came to light internally. Jenkins alleges an Equifax employee caused the glitch.

Equifax CEO Mark Begor publicly acknowledged the glitch at a June investor conference, the complaint states.

“Our data shows that less than 300,000 consumers experienced a score shift of 25 points or more. While the score may have shifted, a score shift does not necessarily mean that a consumer’s credit decision was negatively impacted,” Equifax said in a release.

Jenkins is looking to represent a class of U.S. consumers whose credit scores or consumer reports were inaccurately reported by Equifax to potential lenders as a result of the glitch from March 6 through April 6.

She’s seeking damages, an injunction in the form of an audit, disgorgement of profits, fees, costs and a jury trial. 

In a separate case, Equifax agreed to pay at least $380.5 million to resolve class action claims associated with a massive 2017 data breach.

And in March this year, British consumers followed suit, with lawyers representing a proposed class of thousands of British consumers arguing for class action status to pursue data breach claims against Equifax.

Were you affected by the Equifax credit score reporting glitch? Let us know your experience in the comments. 

Jenkins is represented by Gregory J. Bosseler, John A. Yanchunis, Jean Sutton Martin, Patrick Barthle and Hope V. Whalen of Morgan & Morgan.

The Equifax credit reporting glitch class action lawsuit is Nydia Jenkins v. Equifax Inc., Case No. 1:22-cv-03072, in the U.S. District Court for the Northern District of Georgia. 

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