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Equifax credit score error class action lawsuit investigation

Poor Online Credit Score Rating On Computer, Equifax credit score error

A coding issue led to credit scoring errors by Equifax: who is affected?

(Photo Credit: Andrey_Popov/Shutterstock)

Consumer credit scores may have been incorrectly reported to lenders. These mistakes could have cost the consumer money or the availability of loans. If you are affected, you may be eligible to participate in a class action study.

Millions of potential borrowers may have been affected by inaccurate credit scores in the spring of 2022 after Equifax made a technology change, National Mortgage Professional reported. Equifax told the media organization that Equifax has “proactively notified our customers and resellers and is working closely with individual organizations on analysis.”

Equifax downplayed the magnitude of the problem by saying the “impact was of no significance to Equifax” and claimed only 12% of the scores would be affected. However, in the period from March 16 to April 6, 2022, Equifax issued credit scores on millions of consumers looking for mortgages. And up to 300,000 of those people’s scores may be affected by: 25 points or more. That kind of change in a credit score could result in someone being denied credit altogether, or having to pay a significantly higher interest rate than if Equifax had issued an accurate score.

National Mortgage Professional quoted an anonymous industry source as saying that certain values, such as “number of applications within a month” or “age of oldest trading line” may be incorrect. The Equifax credit score error reportedly occurred from March 16 to April 6, 2022.

Are you eligible?

Equifax would have provided incorrect credit scores for millions of people by the spring of 2022.

If you applied for a mortgage in the spring of 2022 and received an incorrect Equifax credit score on you, you are eligible for a free class action lawsuit investigation.

Fill out the form on this page for more information.

Equifax credit score errors allowed, downplayed

While Equifax tried to downplay the credit score error, it admitted that about There were 300,000 reports with no less than 25 points off. Equifax declined to tell CNN how people can find out if they were among those whose credit scores were incorrectly reported. The credit report flaw was revealed at about the same time that Equifax CEO Mark Begor was given a $25 million retention bonus package, CNN reported. Discussing the erroneous scores, CEO Mark Begor stated, “The impact will be quite small” and “not something that makes sense to Equifax.”

The issue appears to have impacted the scores issued but may not be apparent to consumers who obtain and view a copy of their reports. In a statement released on Aug. 2, Equifax stated that “credit reports have not changed as a result of this issue,” but that the technology change “resulted in the potential miscalculation of certain attributes used in the model.” [score] calculations.”

Other Equifax Credit Report Errors Plague Consumers

Equifax faced a separate data problem in 2017 when the rating agency personal data of 150 million consumers exposed. It paid $700 million to state and federal regulators to settle the matter. The Washington Post reported that Equifax runs it 1200 times more data than the Library of Congress. It was also fined $2.5 million by the FTC in 2000 for blocking and delaying calls from consumers trying to get information about their credit. Plaintiffs have been successful in cases involving Equifax . claim aggregated credit reports with other individualsand in one case that it falsely reported that a person was dead.

Equifax, which describes itself as a global data, analytics and technology company, is headquartered in Atlanta. It is considered one of the “big three” credit reporting agencies. It collects information about more than 800 million consumers and 88 million businesses. It generated $4.9 billion in revenue in 2021. According to the Washington Post, Equifax “instead of simply selling credit reports to business” has “entered new markets, using artificial intelligence, machine learning and other tactics to dig up information, even swiping Facebook and Twitter data on consumers to helping companies decide who to lend money to.”

Participate in an Equifax credit score error lawsuit investigation

Credit reporting agencies like Equifax have tremendous power over people who need or want to borrow money to buy homes and other important purchases. Lenders depend on the accuracy of these reports to determine eligibility for loans and to decide how much interest they will be charged. An incorrect score could result in individuals paying thousands of dollars that they would not have paid had the score been correct, or could result in a total denial of credit.

If you applied for a mortgage in the spring of 2022 and encountered an incorrect Equifax credit score, you may qualify for a free case study.

Fill out the form on this page for a FREE case evaluation.