Consumers May Be Eligible for Up to $280 in Equifax Credit Reporting Settlement

Millions of consumers whose credit information was inaccurately reported by Equifax because of a coding error may be eligible for compensation from a proposed $100 million class-action settlement.

The settlement covers U.S. consumers for whom Equifax reported a credit score or credit attribute to a third party between March 17 and April 8, 2022, that differed from what would have been reported without the coding issue, according to the court-approved settlement website.

Consumers who received an email or mailed notice are considered settlement class members based on Equifax’s records.

To receive money, eligible consumers must submit a valid claim by Dec. 28, 2026. Claims can be filed online through the settlement website or submitted by mail.

It is currently estimated that each claimant could receive between $95 and $280. The actual amount will depend on how much money remains after court-approved attorneys’ fees, litigation expenses, administrative costs, and other expenses are deducted, as well as the number of valid claims filed.

Attorneys representing the class have said the settlement could cover roughly 4 million people nationwide.

Those who object to the settlement’s terms or wish to exclude themselves from it must do so by Nov. 27.

The settlement has received preliminary approval from a federal judge but is not yet final. A final approval hearing is scheduled for Jan. 22, 2027.

The settlement would resolve nearly four years of litigation stemming from a coding problem in one of Equifax’s computer systems in the spring of 2022.

According to the complaint, Equifax allegedly provided inaccurate scores on consumers applying for auto loans, mortgages, and credit cards to a range of banks and other lenders.

The scores were sometimes off by 20 points or more in either direction, the plaintiffs said, potentially affecting the interest rates consumers were offered or whether their applications were approved.

The plaintiffs alleged that Equifax violated the federal Fair Credit Reporting Act, which requires credit-reporting agencies to follow reasonable procedures to ensure the maximum possible accuracy of the information they provide.

Equifax has denied wrongdoing and has not admitted that it violated the law.

In August 2022, the company acknowledged that it had identified a coding issue in a system used to calculate certain elements, or attributes, of credit scores. Equifax said at the time that fewer than 300,000 consumers experienced a score change 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,” the company said at that time.

The episode was a major setback for Equifax, which was also the target of a massive data breach in 2017 that exposed the personal information of nearly 150 million Americans.

Federal prosecutors later charged four members of China’s military with hacking Equifax and stealing sensitive personal data, including names, Social Security numbers, and birth dates.

In the aftermath of the 2017 data breach, Equifax agreed to pay at least $575 million to settle investigations and claims stemming from the breach. Under that settlement, consumers were offered free credit monitoring or the option to seek a cash payment, initially advertised at up to $125.