Equifax Customers Have a Month to Claim a Piece of $2.2M Class Action Settlement
Equifax customers who received reports with duplicated collection account information may be eligible for a $2.2 million settlement payout. The case centered on allegations that Equifax violated the Fair Credit Reporting Act.
Intelligence analysis by Llama
Equifax customers who received duplicated reports may be eligible for a $2.2 million settlement payout. The case alleges that Equifax violated the Fair Credit Reporting Act, resulting in duplicated debt tradelines that made some customers' debts appear larger than they actually were.
Imagine you get a report from a credit company that says you owe money to someone. But then you get another report that says you owe the same money to the same person, but with different dates. This can make it harder for you to get loans or credit cards. Equifax, a big credit company, made some mistakes like this and now they have to pay $2.2 million to fix it.
Analysis
A $60B Vote of Confidence
Equifax, a major credit reporting company, has agreed to a $2.2 million settlement payout to customers who received reports with duplicated collection account information. The case centered on allegations that Equifax violated the Fair Credit Reporting Act, a federal statute that dictates credit reporting companies must follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. The class action lawsuit, Bradberry v. Equifax Information Services LLC, alleged that Equifax wrongfully reported duplicates of negative accounts on certain consumer reports, and that these duplicated debt tradelines are a result of the company having inadequate datakeeping policies and procedures. The lawsuit alleges that Equifax negligently and recklessly disseminated false and damaging information regarding the credit of certain customers. Essentially, the lawsuit alleges that Equifax's negligent reporting made some customers' debts appear larger than they actually were, potentially creating situations where affected individuals couldn't secure loans, credit cards, mortgages, and other lines of credit. The plaintiff, Charmayne Bradberry, filed the suit in the US District Court for the Northern District of Georgia. Bradberry said that she received a report showing the same $305 collection account twice, and that each instance showed separate 'opened' and 'reported' dates for the debt. She alleges that her credit score dropped severely following this report, which may have prevented her from securing a vital mortgage application. Bradberry is one of 37,651 customers Equifax identified as having received reports with duplicate debt tradelines. Equifax has denied any wrongdoing and denied that settlement class members were harmed by its actions, and the court has not ruled in favor of either side. The settlement was agreed upon by both parties, and the court has preliminarily approved the $2.2 million payment, subject to a final approval hearing. The settlement website is live now. The hearing is scheduled to take place on Oct. 6, during which the court will confirm the settlement sum, allocate funds for attorneys' fees, and create a plan to distribute money to the affected class members. While some class action lawsuits automatically pay out from the agreed-upon sum, that isn't the case with Bradberry v. Equifax. Affected individuals need to file a claim and provide valid payment information by Sept. 1 to receive a share of the funds. If you wish to opt out of or object to the settlement, you must do so by the same Sept. 1 deadline. Failure to do so will mean you remain part of the settlement class and forfeit your right to separately sue Equifax for this incident.
Why Cursor?
The settlement class in this case is extremely well-defined. Equifax identified 37,651 people who received duplicated reports. These individuals are the qualifying settlement class members. Affected class members need to file a paper claim or log in through the settlement website in order to receive a payout. In order to file a claim online, you need to use the unique settlement member ID number included within the initial communication sent to affected individuals. This communication was sent out via postcard and email.
The Road Ahead
The total payment for each claimant is capped at $600, but actual payouts will depend on how many settlement class members file claims and how much money the court sets aside for attorney and administrative fees. Whether or not settlement class members file a claim, they will receive six months of Equifax Complete credit monitoring services, including credit reports, credit score monitoring, and up to $500,000 insurance for identity theft-related expenses. During the claims process, class members must select a valid payment method for their share of the settlement funds. According to the paper claim form, you can choose to have the money sent to a PayPal, Venmo, or Zelle account, a virtual prepaid card, or a check. If you're eligible to claim a piece of the settlement sum, you must file by Sept. 1. Payments will be distributed after the court's final approval hearing, assuming there are no appeals.
Key points
- Equifax customers who received reports with duplicated collection account information may be eligible for a $2.2 million settlement payout.
- The case centered on allegations that Equifax violated the Fair Credit Reporting Act.
- The settlement class is extremely well-defined, with 37,651 people identified as having received duplicated reports.
- Affected class members need to file a paper claim or log in through the settlement website to receive a payout.
- The total payment for each claimant is capped at $600, but actual payouts will depend on how many settlement class members file claims and how much money the court sets aside for attorney and administrative fees.
If the settlement is approved, affected customers may receive a payment of up to $600. Additionally, they will receive six months of Equifax Complete credit monitoring services, including credit reports and credit score monitoring.
If the settlement is not approved, affected customers may not receive any payment and may continue to experience difficulties with their credit scores.
