Lawsuit filed against Equifax over credit scores

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Equifax Sued , After Issuing Millions , of Incorrect Credit Scores.CBS reports that Equifax faces a potential class-action lawsuit over incorrect credit scores issued this spring for millions of people.Equifax, which provides financial information and scores for consumers, affects whether or not people are approved for mortgages, credit cards and car loans. .A lawsuit seeking class-action status was filed against the company on August 3 in the Northern District of Georgia, Florida.According to Equifax, a coding error at the company affected customers' scores for as long as three weeks.Equifax claims that very few people were impacted by the error.This issue, which was in place over a period of a few weeks between March 17 and April 6, was fixed on April 6, Equifax statement, via CBS.While the score may have shifted, a score shift does not necessarily mean that a consumer's credit decision was negatively impacted, Equifax statement, via CBS.In 2017, Equifax was implicated in a data breach that exposed sensitive information belongingto almost 150 million Americans. .In 2017, Equifax was implicated in a data breach that exposed sensitive information belongingto almost 150 million Americans. .As a result, Equifax paid $700 million in fines and restitution. .Similarly, the recent coding error lawsuit demands that Equifax repay defendants' additional costs brought on by incorrect credit scores.The suit also seeks for Equifax to compensate defendants for emotional damage

Lawsuit follows disclosure of errors in data supplied to lenders when consumers sought loans.

A lawsuit filed last week against Equifax in federal court alleges that the company’s mistakes on millions of credit scores hurt consumers and violated the law.

The suit, which seeks class-action status, asks that Equifax be forced to pay back the money it made selling those scores, pay an unspecified amount in penalties and to inform every individual whose scores were misreported.

“This lawsuit alleges that Equifax failed to live up to its responsibility as one of America’s major credit reporting agencies,” said a statement by Morgan & Morgan attorneys John Morgan and John Yanchunis. “We believe that many of the people impacted – some of whom may still be unaware of what happened – suffered severe financial consequences. We will hold Equifax accountable for these alleged failures and win justice for everyone impacted.”

The case, filed Tuesday on behalf of a Florida woman in U.S. District Court in Atlanta, could be the first legal fall-out from the credit score revelations, which was first reported by trade publication National Mortgage Professional in May, but occurred in late March and early April.

Atlanta-based Equifax, which acknowledged making mistakes on many consumers’ scores during a three-week period in March and April, has said that a “coding issue” was at fault.

The company collects information about hundreds of millions of individuals and companies, files that show whether someone is applying for debt and whether they generally pay their debts on time. Equifax, like other credit-gathering companies, sells that data to lenders, who use the reports and credit scores in deciding whether to offer a loan and what kind of interest to charge.

The Wall Street Journal recently reported that millions of consumer scores were affected.

Equifax told The Atlanta Journal-Constitution it will respond in detail to the suit in court.

However, the company said in a statement Thursday that the “vast majority of scores” were not changed by the purported software glitch.

Moreover, a change in the score would not necessarily mean that a consumer was denied a loan or made to pay higher interest rate, the company said.

“For those consumers that did experience a score shift, initial analysis indicates that only a small number of them may have received a different credit decision,” the company said.

The suit alleges that some people were harmed. In its filing, Morgan & Morgan asks the court for the right to represent all the people whose credit scores were changed. Those people’s identities are, for the most part, unknown and their number also uncertain.

However, as representative of that larger class, the lawyers cite Nydia Jenkins of Jacksonville who, they say, was denied an auto loan because of a mistake in an Equifax report to a dealership. Equifax reported to the dealership that Jenkins score was off by 130 points, the suit says.

Jenkins was forced accept a loan with much less generous terms, paying $150 a month more than she would have paid under the application she was denied, according to the suit.

Along with TransUnion and Experian, Equifax is one of three dominant credit-reporting companies that sell information about American consumers, mainly to lenders. Equifax may be the best known, thanks to a hack in 2017 that exposed sensitive personal information about nearly 150 million Americans.

That 2017 breach, one of the largest hacks known into consumer data, catapulted the once-obscure Equifax into national notoriety. It led to the departure of the company’s top executive, Congressional hearings and a settlement in which the company paid hundreds of millions of dollars.