Equifax To Pay $725K Over Inaccurate Credit Scores
Equifax To Pay $725K Over Inaccurate Credit Scores That Raised Costs For NY Consumers
Bad math at Equifax led to bad rates for New Yorkers – now it’s paying up.
The credit reporting agency agreed to a $725,000 settlement reached with the Empire State Tuesday, Jan. 15, after a coding error wrongly lowered credit scores for over 77,000 New Yorkers.
An investigation found that the three-week error in March 2022 caused inaccurate credit scores to be reported to lenders and insurers. The flub resulted in higher rates on loans, insurance policies, and other financial products for many consumers, James’ office said.
Equifax, one of the nation’s largest credit reporting agencies, corrected the issue by April 2022 and offered reimbursement to lenders and insurers for rate adjustments made to affected borrowers.
New Yorkers who purchased Equifax products showing their credit scores during this time may be eligible for restitution and will be contacted by the attorney general’s office.
“Credit scores affect some of the most significant parts of New Yorkers’ lives, from the cars they can buy, to the housing they live in, to their ability to start a small business,” James said.
“Consumers depend on credit bureaus like Equifax to report their credit history accurately. Equifax’s failure to do its most basic job inflated costs for consumers across New York.”
As part of the settlement, Equifax must implement new safeguards and regularly monitor error reports to prevent similar issues in the future.
New Yorkers with complaints about credit rating agencies can file them online with the Attorney General’s Consumer Frauds and Protection Bureau or call 1-800-771-7755.
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Daily Voice Albany