Equifax reaches $100 million settlement over credit scoring errors
Equifax has agreed to a $100 million settlement to resolve a class-action lawsuit alleging that a 2022 coding error resulted in inaccurate credit scores for millions of Americans.
Credit reporting agency Equifax has settled a class-action lawsuit for $100 million following allegations that a coding error led to the miscalculation of millions of consumer credit scores. The issue, which occurred between March 17 and April 6, 2022, impacted approximately 4 million individuals applying for mortgages, auto loans, or credit cards.
The lawsuit claimed that the miscalculations caused scores to drop by as much as 20 points, leading to rejected loan and credit applications. While Equifax has not admitted fault or violations of the Fair Credit Reporting Act (FCRA), the company entered the agreement to mitigate the costs and risks of ongoing litigation.
David Berger, co-lead counsel for the plaintiffs, stated that the settlement is the largest in history regarding the FCRA. A final fairness hearing is scheduled for January 22, 2027. Eligible consumers must submit claims by December 28, 2026, to receive payments, which are estimated to range between $95 and $280 depending on the total number of approved claims.