This archive report was first published on 23 July 2019.
July 23, 2019, marked two years since the massive Equifax data breach that exposed the personal information of approximately 147 million Americans. The credit bureau has now agreed to pay at least $650 million to resolve consumer claims and multiple state and federal investigations stemming from the episode.
According to settlement documents filed in federal court in Atlanta, at least $300 million of the settlement amount will go directly to consumers. Those affected by the breach could also receive an additional $125 million if the initial fund is exhausted.
Eligibility and Compensation ¶
The 147 million Americans whose personal information was compromised in the breach are covered by the settlement. To be eligible for compensation, individuals must prove they have been fraud victims or have spent a significant amount of time taking precautions to protect their identities.
Consumers who can demonstrate losses resulting from the breach may be entitled to up to $20,000 in compensation. This includes reimbursement for the cost of freezing or unfreezing a credit file, buying credit-monitoring services, and dealing with identity theft.
Claims Process ¶
Consumers must submit claims with documentation that proves they lost money as a result of fraud or spent money on credit-monitoring services. The documentation could include credit card or bank statements, invoices, telephone records, and receipts.
Once the settlement is approved, consumers will have six months to claim any benefits. An extended claims period of four years will allow consumers to recover losses that occur after the initial window closes if there is money left in the fund.
Background of the Settlement ¶
The Equifax data breach occurred in 2017, when hackers stole sensitive information, including Social Security and driver’s license numbers, belonging to millions of customers. The breach took Equifax more than two months to detect, and the company waited over a month to inform the public.
