Lawsuit Alleges Equifax Error Caused Higher Interest Rates, Denied Loans
The class action was filed on behalf of Nydia Jenkins of Jacksonville, Florida, who claims Equifax provided a car dealership with a score that was off by 130 points when she applied for an auto loan.
Jenkins was pre-approved for her car loan in early April 2022, which she expected to pay roughly $350 monthly on, but was subsequently denied because of the inaccurate score, according to the lawsuit. As a result, she was forced to apply for another loan where she pays $252 bi-weekly.
Plaintiff claims she filed the suit in order to compel Equifax to pay back the revenue it made by selling inaccurate scores.
Equifax Issued Wrong Credit Scores for "Millions" of Customers, Report Says
Equifax has admitted that it sent out incorrect credit scores for millions of customers applying for home and auto loans, according to a Wall Street Journal report published on August 2, 2022.
As one of three major credit-reporting companies in the United States, Equifax provides financial information and scores for consumers, affecting whether people are approved for mortgages, credit cards and car loans, and what interest rate they pay. Most credit ratings range from 300 to 850, with higher-scoring consumers getting more favorable terms.
The error affected millions of Americans, with some scores changing by more than 100 points — enough for some prospective borrowers to be rejected for a loan. The incorrect scores were sent to Ally Financial, JPMorgan Chase, and Wells Fargo, among other lenders, the Journal reported.
In a statement on its website, Equifax said the problem occurred because of a "coding issue" when changes were made to one of the company's servers, which "was in place over a period of a few weeks [and] resulted in the potential miscalculation" of credit scores.
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Errors on Your Equifax Credit Report
The consequences of an error on your credit report include:
- Lower credit score
- Loss of a job opportunity
- Denial of loan and credit applications
- Higher interest rates for your credit card, private student loans, and home mortgage
- Higher insurance premiums for your home and car
How Do I Dispute an Error on My Credit Report?
If you identify an error in your credit report, you should start by disputing that information with Equifax. You should explain in writing what you think is wrong, why, and include copies of documents that support your dispute.
Can I Sue Equifax For Wrong Information?
If you submit a dispute to Equifax, the company has a 30-day window to verify and correct the mistake. In the interim, you can see your Equifax dispute status online. If you receive your Equifax dispute results and see that the error was not fixed, you have the right to sue Equifax.
Equifax Data Breach Settlement
In September 2017, Equifax announced a data breach that exposed the personal information of 147 million people. The company subsequently agreed to a global settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau, and 50 U.S. states and territories. The settlement includes up to $425 million to help people affected by the data breach.
The initial deadline to file a claim in the Equifax settlement was January 22, 2020. However, you can still file a claim for expenses you incur between January 23, 2020, and January 22, 2024, as a result of identity theft or fraud related to the breach.
Get a Free Equifax Lawsuit Evaluation With Our Lawyers
The Finance and Insurance Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in Equifax Lawsuits. We are handling individual litigation nationwide and currently accepting new cases in all 50 states.
If your credit score was inaccurately reported by Equifax, you should contact our law firm immediately. You may be entitled to a settlement by filing a suit and our lawyers can help.