Equifax sent lenders false credit scores between, at a minimum, March 17 and April 6 this year, blaming the problem on a “coding issue” or a technology glitch. Some reported credit scores were off by 25 points or more, causing consumers to be forced to pay higher interest rates or even receive an outright denial of credit.
The coding issue was avoidable, but the company failed to prevent the outcome. Equifax’s failure likely affected millions applying for auto loans, credit cards, mortgages, and more this past spring.
Beasley Allen and other firms have filed class action lawsuits on behalf of consumers affected by the coding issue. These lawsuits allege Equifax failed to follow laws designed to protect the privacy and accuracy of consumers’ credit scores. They also claim that Equifax continued to provide the false scores after it knew or should have known they were incorrect. Plaintiffs say the false reported scores could have been off by as much as 142 points.
The defendant is one of three primary national consumer reporting agencies in the U.S. and serves as a gatekeeper for consumers’ access to socioeconomic opportunity and advancement. The information Equifax is charged with protecting impacts many of the most critical decisions in consumers’ lives, for example, whether consumers can buy a house, obtain loans, lease vehicles, or even get a job.
During the glitch, the three major credit reporting agencies received approximately 25 million requests for credit reports. The lawsuit explains that it is likely that Equifax’s actions and inactions directly harmed hundreds of thousands, if not millions, of consumers.
If you received a false lowered credit score from Equifax at some point this year, please contact us. Dee Miles, head of our Consumer Fraud Section, Ali Hawthorne, Rachel Minder and Paul Evans have filed the class action lawsuit and are investigating these claims.