Equifax customers could get cash payout after credit reporting errors

Here's a "good news, bad news" kind of story. You could be eligible for a cash payout of up to $600, but that's only because your credit score may have been incorrectly reported by Equifax.

Origin of class action lawsuit

Equifax Information Services LLC has agreed to a settlement from a class action lawsuit that accused the credit bureau of "wrongfully reporting duplicates of negative accounts." This made it look like people's collection balances were larger than they actually were.

The suit also alleged that Equifax violated the Fair Credit Reporting Act. This act requires credit bureaus to "use reasonable procedures to ensure they provide accurate information." The suit was filed in 2022, so the ruling has been a long time coming.

You could be eligible for a $600 payment

Here's the part that you need to know. Customers can get a cash payout of up to $600 if they meet the requirements and submit a claim by Sept. 1, 2026. The claim window means there's no time to lose; you need to act fast.

Equifax has agreed to a $2.2 million settlement, despite not admitting to wrongdoing. This settlement has also received preliminary approval by the courts.
About 37,000 customers were affected by the reporting error.

If you qualify for the payout, you would have received a "Duplicate Reporting Letter" from Equifax in August or September 2022.

Plaintiff claimed financial harm

The plaintiff in the case accused Equifax of harming her creditworthiness, which caused her financial harm.

If there are errors in your credit rating, it is harder for you to get a loan, rent a house or apartment, purchase or lease a car, and in some cases, it can affect your ability to get a job.

Stay on top of your credit rating

The big takeaway here is to stay on top of your credit rating. It's a good idea to check it once in a while and make sure there aren't any errors.

Source: The U.S. Sun