Equifax will pay up to $100 million to settle claims that a 2022 coding error sent inaccurate credit scores to lenders for about 4 million consumers.
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Equifax Agrees to $100 Million Settlement Over Credit Score Errors
Equifax will pay up to $100 million to settle claims that a 2022 coding error sent inaccurate credit scores to lenders for about 4 million consumers.
Equifax has agreed to a proposed $100 million class-action settlement over a 2022 coding error that allegedly sent inaccurate credit scores to lenders for about 4 million consumers, though no claims can be filed until a federal judge grants final approval.
"The agreement is the largest settlement in history related to the Fair Credit Reporting Act," lawyers at DiCello Levitt, the firm representing affected consumers, said. Equifax denied wrongdoing, and the settlement does not constitute an admission of liability.
The coding error misreported lower credit scores for people who applied for mortgages, auto loans or credit cards between March 17 and April 6, 2022. Equifax has maintained that most scores did not change substantially, saying fewer than 300,000 people experienced a change of 25 points or more, according to ConsumerAffairs.
The stakes are direct: lenders use credit scores to decide whether to approve applications and what interest rates and terms to offer. The lawsuit alleges some applicants were denied credit, charged higher rates or received less favorable terms because of the incorrect scores. A final fairness hearing is scheduled for Jan. 22, 2027; if approved, eligible consumers will have 90 days to submit a claim.
Who qualifies and what you could receive
About 4 million people are estimated to be in the settlement class — consumers whose credit scores were inaccurately reported because of the coding error. Those who applied for a mortgage, auto loan, credit card or other credit product during the affected window should pay attention, especially if they were unexpectedly denied credit or offered less favorable terms. Applying for credit during the period does not automatically guarantee eligibility.
No individual payment amount has been announced. Each payout will depend on the number of valid claims submitted and what remains after court-approved legal fees, administrative costs and other expenses are deducted. The fund is non-reversionary, meaning money left over will not be returned to Equifax.
What to do now
Claims are not open yet, so there is nothing to file at this point. Consumers who applied for credit during the affected period should keep any records from that application, particularly documents showing a denial, interest rate or other terms offered. Watch for an official settlement notice with eligibility details, deadlines and claim instructions.
Be cautious of emails, texts or websites promising an immediate Equifax settlement payment. Do not pay anyone to file, secure or expedite a claim on your behalf, and do not share sensitive financial information with unsolicited contacts.
The settlement is one of several large consumer class actions making headlines. Equifax, along with rivals Experian and TransUnion, has faced repeated scrutiny over credit reporting accuracy, and the Fair Credit Reporting Act underpins consumer rights to dispute errors in their files.
This article is for informational purposes only and does not constitute professional advice. Settlement details, eligibility and timelines are subject to change; verify against the latest official court announcements before acting.
