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Equifax Credit Score Errors Impact Millions of Consumers

August 5, 2022 Class Action,Class Actions

The credit reporting agency Equifax recently sent lenders incorrect credit scores on behalf of millions of consumers. For about 300,000 of those prospective borrowers, the scores were off by 25 points or more, leading some to be denied credit or receive higher interest rates.

People applying for credit cards as well as loans and mortgages were impacted. A variety of lenders received the inaccurate credit scores, such as JPMorgan Chase, Wells Fargo, Ally Financial, and more.

According to Equifax, a coding issue with one of its servers, which “was in place over a period of a few weeks” caused the miscalculation of consumers’ credit scores. The company did not specify dates during which the inaccuracies occurred. However, Freddie Mac alerted its clients in June that Equifax reported about 12 percent of all credit scores released from March 17, 2022, to April 6, 2022, may have been incorrect.

What Do These Credit Score Errors Mean for Consumers?

A consumer’s credit score has a big role in their ability to receive a loan or credit card and the interest rate or fees they will need to pay. Unfortunately, thousands of would-be borrowers’ applications may have been denied, while others may have been approved but with interest rates that are much higher than they should be. As a result of these errors, many consumers have likely experienced financial losses. It’s unfair and unacceptable.

If you believe Equifax sent an inaccurate credit score to lenders for you, please contact CaseyGerry at (619) 238-1811. Our firm has litigated against many major institutions for failing consumers. We can explain your options for seeking legal recourse.