Equifax Settlement Gives Credit Report Users Sept. 1 Claim Deadline

Sept. 1 is the claim deadline for Equifax customers covered by a $2.2 million class-action settlement, CNET reported, after a lawsuit challenged duplicate negative account entries on some 2022 consumer credit files.

The case, Bradberry v. Equifax Information Services LLC, centers on allegations under the Fair Credit Reporting Act.

The complaint alleged that Equifax wrongfully duplicated negative debt tradelines on certain files and used inadequate data-keeping policies and procedures, making some debts appear larger than they were.

That error can matter at the point where credit data turns into access to finance.

The suit framed false or inflated debt information as damaging to consumers seeking loans, credit cards, mortgages and other lines of credit.

Charmayne Bradberry filed the case in a federal court in Georgia.

Her complaint cited a credit file that showed the same $305 collection account twice, with separate opened and reported dates for each entry, and linked the record to a severe credit-score drop that may have affected a mortgage application.

Equifax identified 37,651 people who received files with duplicate debt tradelines.

Those consumers form the settlement class, while eligibility is limited to people whose files included duplicated collection account information that reflected more debt than existed in reality.

The settlement does not include an admission of liability.

Equifax denied wrongdoing and denied that class members were harmed, and no side has won a court ruling on the merits.

Both parties agreed to the settlement, and the court has granted preliminary approval subject to a final approval hearing on Oct. 6.

Payment is not automatic.

Class members must submit a paper claim or use the settlement website with the unique member ID sent by postcard and email, then choose a valid payment method.

The paper claim form lists PayPal, Venmo, Zelle, a virtual prepaid card or a check as options.

Each claimant's cash payment is capped at $600, but the final amount will depend on how many valid claims are filed and how much the court allocates to attorney and administrative fees.

Class members also receive six months of Equifax Complete credit monitoring, including credit reports, score monitoring and up to $500,000 in insurance for identity-theft-related expenses.

The same Sept. 1 deadline applies to objections and opt-outs.

Consumers who stay in the class give up the right to sue Equifax separately over the same incident, and payments will be distributed after final court approval if no appeals delay the process.