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Equifax Admits Issuing Millions Of False Credit Scores

by | Aug 26, 2022 | Class Actions, Consumer Protection

Edelson Lechtzin LLP, a national class action law firm, is investigating claims against Equifax Inc. (NYSE: EFX) for violating the federal Fair Credit Reporting Act (FCRA), by sending incorrect credit reports to lenders. Equifax is a consumer credit reporting agency headquartered in Atlanta, Georgia. A copy of the class action complaint can be found here.

How did it happen?

Equifax has blamed a “coding” issue for the errant credit reports. According to CNN, millions of incorrect credit scores were generated when Equifax was migrating its servers to a new cloud system.

Why is there a class action against Equifax?

Equifax provided incorrect credit reports for roughly 300,000 consumers seeking loans that were off by 25 points or more, and these would-be borrowers may have been wrongfully denied loans. While victims of false credit reporting may have monetary losses, it probably would not be economically feasible to pursue the claims on an individual basis. However, a class action allows consumers to aggregate their relatively modest claims in one collective lawsuit.

Equifax claims it’s no big deal

It should come as no surprise that Equifax denies harming consumers. “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,” Equifax said in a statement.

What can you do if your credit score was reported incorrectly?

Please call us at 844-696-7492 (toll-free) to learn more about your rights under the FCRA, or click here to submit your info. We represent our clients on a contingent fee basis, meaning we don’t get paid unless your case settles or you win at trial.

Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to consumer protection class actions, our lawyers focus on cases alleging violations of the antitrust laws, securities and investment fraud, wage theft, employee benefits plans, and dangerous and defective drugs and medical devices.