WASHINGTON, DC — Equifax has agreed to a $100 million class action settlement over claims that a coding error caused incorrect credit score information to be sent to third parties for consumers applying for mortgages, auto loans, credit cards, insurance and other products.
The case involves one of the nation’s largest credit bureaus and affects people who may have received inaccurate scores or credit attributes during a three-week period in 2022. Attorneys for the plaintiffs say the deal could become the largest payout tied to an alleged violation of the Fair Credit Reporting Act if it gets final approval in January.
Eligible consumers may still have time to act. The claims deadline is Dec. 28, 2026, while the deadline to opt out of or object to the agreement is Nov. 27, 2026.
How the alleged Equifax error spread across credit decisions
The lawsuit says the problem came from Equifax’s Online Modeling System, or OMS, and lasted from March 17 through April 8, 2022. During that span, allegedly faulty scores were generated and reported to outside parties, potentially affecting lending and insurance decisions.
Equifax collects financial information on more than 250 million Americans and uses that data to help calculate FICO and VantageScore credit scores. Because lenders and other businesses rely on those scores, even a temporary reporting issue can matter to consumers trying to qualify for credit or favorable terms.
Equifax told CNBC Select that it denies wrongdoing and views the settlement as a compromise of disputed claims. The company said its analysis showed most scores did not change during the three-week period, and that many of the changes that did occur were positive.
Who may qualify for a payment from the settlement
According to the settlement website, eligible class members include consumers who received an inaccurate credit score or credit attribute because of the OMS error during the 2022 period. People who believe they qualify should have received a notice by email or mail.
Consumers who are unsure whether they are included can check the settlement website, call 888-808-1542 or email [email protected]. Settlement administrators say there could be as many as four million eligible class members.
The amount each person receives will depend on how many valid claims are filed and how court-approved fees, expenses and administration costs are handled. Payments will be distributed on a pro rata basis, so the final figure may vary.
What claimants could receive and when money may go out
Estimated payments range from about $95 to $280 for people with valid claims. That figure is not guaranteed, and the actual amount could end up higher or lower depending on the final pool of claims.
To participate, consumers must submit a valid claim by Dec. 28, 2026. Claims can be filed online through the settlement website or by mail using a paper form sent to the administrator at Equifax FCRA Litigation, P.O. Box 301132, Los Angeles, CA 90030-1132.
A final fairness hearing is scheduled for Jan. 22, 2027. If no appeals follow, the remaining settlement funds will be distributed after attorneys’ fees and payments to the lead plaintiffs are handled.
Why checking your credit reports still matters now
Credit reporting agencies share financial data with banks, landlords, insurers and other businesses that want to review creditworthiness. The reports typically include identifying details such as a consumer’s name, date of birth, phone number, addresses, Social Security number and employer history.
They also show account details like opening dates, credit limits or loan amounts, balances, monthly payments, payment history and negative items such as judgments, bankruptcies and settled debts. If something is wrong, a lower score can follow.
Equifax says consumers should monitor their reports regularly so they know what lenders may see and can catch incomplete or inaccurate information. Free credit reports are available every week from Equifax, Experian and TransUnion at AnnualCreditReport.com or by calling 877-322-8228.
Common report errors and the steps to challenge them
The Consumer Financial Protection Bureau says common credit report mistakes include misspelled names, incorrect addresses or birth dates, accounts that belong to someone with a similar name, closed accounts shown as open and loans listed more than once.
Other problems can include debts marked unpaid even after settlement, collections that should not be there, fraudulent accounts tied to identity theft, incorrect balances or credit limits and accounts that list someone as the owner when they are only an authorized user.
If a mistake appears, consumers should dispute it with the credit bureau and the company that supplied the information. Equifax, Experian and TransUnion each have dispute portals, and people can also send supporting documents by certified mail to create a paper trail.
What to do if a bureau still will not fix the problem
Credit agencies generally have 30 days to respond to a dispute. If the item is removed, the bureau must notify the consumer and the other two agencies so the correction can be shared.
If a mistake remains or returns later, consumers may turn to the CFPB, notify the Federal Trade Commission or consider legal action under the Fair Credit Reporting Act. The FTC can act on broader patterns of complaints even though it does not resolve individual cases.
Some people also use credit repair companies for help with disputes and follow-up. Those services can be expensive, however, and they cannot remove information that is accurate and legitimate. They may be useful for consumers who want outside help managing a slow or confusing process.
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