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Equifax $100M settlement marks record payout over credit score coding glitch. 0 Comments For three weeks in the spring of 2022, a hidden flaw quietly rewired the credit scores of millions of Americans - like a single misplaced digit in a massive equation, throwing off the final answer without anyone noticing at first. Now, nearly four years later, that glitch has produced a settlement so large that lawyers involved say it stands alone in the history of consumer credit litigation. The deal on the table. Equifax has agreed to pay $100 million to resolve a class action filed in Georgia federal court, closing the book on claims that a coding error caused the company to report inaccurate credit scores to lenders. Consumers behind the case filed a motion Wednesday asking the court to sign off on the agreement - the product of nearly four years of legal wrangling and two separate rounds of mediation with Equifax Information Services LLC and its parent, Equifax Inc. A record-setting figure. Class counsel didn't mince words about what this deal represents. According to the motion, the $100 million settlement is, to their knowledge, the largest resolution of a Fair Credit Reporting Act case on record - a benchmark that instantly sets this case apart from the sea of consumer data disputes that came before it. What went wrong - and when. At the center of the case sits a narrow but consequential window: March 17 to April 8, 2022. During those three weeks, a coding error inside Equifax's systems caused certain credit scores and related data points shared with third parties to drift from what accurate calculations would have produced. It's the kind of error that sounds small in isolation - three weeks, a handful of lines of code - but rippled outward to touch roughly 4 million people whose credit information reached third parties during that stretch. How the payout will work. The settlement fund carries a built-in safeguard for consumers: it's nonreversionary, meaning any money left unclaimed stays out of Equifax's hands rather than flowing back to the company. Class members who file a valid claim within 90 days of a court-approved notice date will receive a proportional cut of what's left in the fund once attorney fees, litigation costs, and administrative expenses are subtracted. A high-stakes legal gamble for both sides. This wasn't a case either side could afford to treat casually. Proving liability under the FCRA required clearing a steep bar - showing Equifax's conduct rose to the level of willful, meaning reckless, rather than simple oversight, according to the motion. Equifax, for its part, fought the case on multiple fronts. The company disputed whether the affected data even qualified as a "consumer report" under the law, and argued that standing to sue should be limited only to individuals whose data was actually accessed and relied upon by a third party - not the broader pool of everyone technically affected. Equifax also warned that statutory per-violation damages, if awarded across millions of consumers, could balloon into a figure so large it would run afoul of constitutional limits on excessive penalties. The paper trail behind the case. Getting to this point required a genuine excavation. Class counsel combed through more than 3 million pages of documents and conducted 16 depositions, and had already drafted their motion for class certification along with a supporting expert report before both sides ultimately agreed to settle instead of pressing forward to trial. The ruling that kept the case alive. The litigation cleared a critical hurdle in September 2023, when a Georgia federal judge ruled that the willful-violation claim under the FCRA could move forward. The judge found that Equifax's reliance on outdated legacy systems, paired with what were described as insufficient testing procedures, was enough to support allegations of recklessness - though a separate negligence claim in the same suit was dismissed. Equifax pushes back on wrongdoing. Despite agreeing to the payout, Equifax isn't conceding fault. A company spokesperson told Law360 on Thursday that Equifax denies violating the law and characterized the settlement as a compromise of disputed claims rather than an admission. The spokesperson added that most credit scores affected during the three-week coding issue didn't actually change, and that a substantial number of those that did move actually shifted upward. Attorneys representing the consumers did not immediately respond to requests for comment Thursday. Who's behind the case. The consumers are represented by Michael Caplan, Ashley Brown and Katherine Gamsey of Caplan Cobb LLC; Amy Keller and Justin Hawal of DiCello Levitt LLP; Eric Gibbs and David Berger of Gibbs Mura LLP; and Dena Sharp, Adam Polk and Jordan Elias of Girard Sharp LLP. Equifax's defense team includes Robert Griest, Zachary McEntyre and John Toro of King & Spalding LLP, along with Jason Carter, Mark Bailey and Joshua Thorpe of Bondurant Mixson & Elmore LLP.

Equifax has raised $1 billion through two consecutive note sales, issuing $500 million of 5.00% notes due 2029 and $500 million of 5.650% notes due 2033. Both tranches are senior unsecured, fixed-rate debt priced slightly below par. The offerings follow Equifax's repurchase of $1.49 billion of stock since April 2025. The combination of new debt and equity buybacks is expected to increase financial leverage. Analysts note that Equifax already carries a high debt level. The company, known for consumer credit reporting and data services, typically relies on bond markets to fund technology investment, acquisitions, and refinancing needs. The new notes lock in funding costs and extend the company's maturity profile at fixed coupon levels.

If you've been wrongfully terminated for having another part-time job, Equifax may be at fault. Last Updated: 30 Jul, 2026 Contact Us Step 1 of 3 Step 2 of 3 It might not seem fair, but companies are now able to research your background to determine if you're moonlighting. Using their own tool "The Work Number", Equifax uncovered employees who were working a second job and fired at least 24 remote workers for having additional undisclosed employment. With inflation soaring, the cost of living higher than ever, and the surge in remote work opportunities since the COVID-19 pandemic, many Americans have taken on a second or third job for extra income. Whether this is due to necessity, or wanting to have some extra cash from a side hustle, it has cost at least two dozen Equifax employees their jobs. At fault? Equifax's proprietary "The Work Number" tool. What is a Credit Reporting agency? Credit reporting agencies, also known as credit bureaus or companies, collect data, compile credit reports, and sell those credit reports. The Fair Credit Reporting Act or "FCRA" limits the reach of these companies and who may access these reports. You might wonder how the Fair Credit Reporting Act protects consumer rights. The purpose of the Fair Credit Reporting Act is to ensure accuracy and to protect your private information from being accessed without an explicit purpose. A credit report generally contains information regarding: * credit card balances, limits, and payment history, * loan history, balances, and repayment history, * inquiry history on the account, * bankruptcies, * unpaid child support or alimony, and * accounts in collection. Even though the agencies are limited by the FCRA, that doesn't mean they aren't often in violation of the Fair Credit Reporting Act. However, there are ways to dispute a credit report or a credit reporting agency and win. The big 3 Credit Reporting agencies. While there are other credit reporting agencies, three credit reporting agencies have cornered the market. They are Equifax, TransUnion, and Experian. Equifax fired 24 employees for having a second (or third) job. Using their own tool, "The Work Number", Equifax uncovered employees who were working a second job and fired at least 24 remote workers for having additional undisclosed employment. Equifax claims this is because the now-ex employees were not allowed to take on extra work without Equifax's approval and were in violation of their employment contracts. Reports show that the former employees weren't violating their non-compete agreements. They weren't using insider knowledge or selling trade secrets. They were simply working a second or third job that Equifax hadn't approved. What is Equifax's "the Work Number" Tool, and how could this affect me? "The Work Number" is a digital income and employment verification service. It has more than 140 million active income and employment records of workers across America, spanning each worker's entire career. The information in the reports created comes from employers and payroll processors. It's very possible that "The Work Number" has your employment information on file. While Equifax used its own product to conduct this investigation, this product is available to other companies. Equifax sells these reports for $55. While the tool is most often used by mortgage and auto lenders, as well as an aid for government welfare applications, you can access your own report for a fee. You can dispute Equifax for any incorrect information on the report. While it currently appears that access to the tool is limited, Equifax using this tool to investigate their own employees is setting a dangerous precedent that such tools could be used for employment investigations in other companies. What is wrongful termination? Wrongful termination occurs when an employee is terminated in a way that breaches their employment contract or violates the law. If you entered an employment contract, your employer is bound by the contract and its terms. While traditionally an employment contract is written out and signed by both parties, in some cases verbal promises count and function as an implied employment contract. If you were terminated in a way that violates the agreements made in your employment contract, that is wrongful termination. Termination violates the law when it goes against an anti-discrimination law, or the termination was the employer's way of retaliating. For example, you can't be fired based on your race, gender, sexual orientation, pregnancy status, ethnic background, religion, disability, national origin, or age (when that age is over 40). Similarly, you can't be fired for filing a valid workers' compensation claim or bringing employer wrongdoing to attention as a whistleblower. Firing someone based on discrimination or retaliation is wrongful termination. Can I legally have multiple jobs or a job and a "side hustle"? Generally speaking, unless you've signed a valid employment contract stating you won't take an additional job, there's no law against working more than one job. If you aren't doing a second job on company time, you're available within the parameters that your employer expects you to be, you're not using company property for your second job, and your performance in your main job remains consistent, a second job shouldn't get you fired. That being said, even if it isn't illegal, having a second job could get you into trouble under some circumstances. Specifically, if your second job is a conflict of interest with your current employment, you could be asked to stop working your second job or even be fired. This involves working for a competitor company, setting up a business that competes with your employer, or using insider work knowledge in your second job. If you've signed an employment contract, it may include provisions for additional work. Some don't allow extra work. Others require company or HR approval for additional work or, if your contract involves a non-compete agreement, it may restrict your options for a second job. It's best practice to consult your employment contract, look over your company's policies, and speak to HR before taking on any additional work that could jeopardize your primary employment. Have you been wrongfully terminated for having a second or third job? Want to sue Equifax? Contact Consumer Attorneys. With a robust, experienced team in employment law and a proven track record in fighting back against Equifax and similar credit reporting agencies, Consumer Attorneys is prepared to guide you through your case and contest your wrongful termination. Call Consumer Attorneys PLC. today to discuss your unique case with its team and learn how to dispute Equifax. Table Of Contents