Class-action suit filed against Equifax in score reporting glitch | #government | #hacking | #cyberattack

A class-action lawsuit has been filed against Equifax following a report that millions of credit scores were affected by a technical glitch in the credit bureau’s reporting system.

The suit, filed in U.S. District Court in North Georgia by the Florida-based law firm Morgan and Morgan, seeks a trial by jury for damages suffered by anyone whose score changed from at least March 6 to April 6, the period when the glitch is believed to have occurred.

The Wall Street Journal reported Tuesday that, as Equifax was transitioning to a new technology system, it unintentionally provided inaccurate credit scores on millions of U.S. consumers seeking various types of credit. In a statement on its website, Equifax acknowledged that as many as 300,000 people experienced a score shift of 25 points or more, enough to swing a borrower’s credit rating from good to fair, or fair to poor.

The lead plaintiff in the suit is Nydia Jenkins, a Jacksonville, Florida, resident who, according to the complaint, was denied an auto loan in early April after her credit score suddenly changed by 130 points, causing her to have to seek a more expensive loan.

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Jenkins “was forced to apply for another loan from a ‘buy now’ dealership and received a loan with much less favorable rates,” the suit states.

When Jenkins was pre-approved for her loan in January, she was to pay an estimated $350 a month, the lawsuit says. “Under the terms of her current loan, Plaintiff pays $252 bi-weekly” — or $504 a month.

The suit is seeking to represent any other individual in a similar situation as Jenkins’. It is also demanding Equifax compensate those affected.

Neither Jenkins nor a Morgan and Morgan representative responded to requests for comment. Equifax also did not reply to a request for comment.

In 2019, Equifax paid a $575 million settlement to the federal government after a hack compromised the private records of nearly 150 million Americans. In 2020, the U.S. government charged four Chinese citizens in the hack; China has denied involvement.

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