Equifax has agreed to pay $100 million to settle a class action lawsuit alleging it miscalculated credit scores for around 4 million Americans, according to Fast Company. The suit claimed a coding error led to inaccurate credit report information over a three-week period in 2022, affecting those who applied for mortgages, auto loans, or credit cards.
The settlement comes with no admission of fault from Equifax, which denied violating the Fair Credit Reporting Act. The company and plaintiffs agreed to settle to avoid the uncertainty and cost of further litigation. For banks and insurers, the case draws attention to the risks of data errors in credit reporting and the potential for regulatory or legal action.
