Equifax is facing a class-action lawsuit due to an alleged technical issue. The issue is said to stem from their reporting system’s malfunction during a system update that allegedly affected millions of credit scores. The lawsuit claims millions of members may have had a credit score change during the period of the alleged malfunction – March 6, 2022, through April 6, 2022.
Equifax was moving to another system when the credit scores were allegedly inaccurately reported. Equifax maintains this was unintentional. According to Equifax, as many as 300,000 people may have had their credit score lowered by 25 points or more. The lead plaintiff filed the lawsuit because they had learned of their credit score shift of 130 points while trying to purchase an automobile and suffered the negative consequence of the inaccurate credit score by being forced to use a loan with less favorable terms.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
A poll conducted by Morning Consult found that after the Equifax Data Breach, 68% of Americans would join a class action against Equifax. Here is a link to the article.
Here is the quote from the end of an article about the Wells Fargo and Equifax scandals.
Many articles are now appearing pointing out that Georgia Representative Loudermilk proposed a bill to gut the regulations applicable to Equifax (which is headquartered in Georgia) just before the data breach became public. Here are links to the articles:
David Lazarus, a business reporter for the L.A. Times, wrote an article stating that consumers are just now becoming aware of the forced arbitration issue because of the Equifax attempt to force consumers whose data had been stolen to waive their right to bring cases in court by inserting a forced arbitration clause in the small print of a credit monitoring product that was offered as a remedy for the breach.
An interesting article in the American Banker Magazine says that the hoopla surrounding the Equifax data breach, including Equifax’s efforts to force consumers into arbitration after the data breach, may mean doom for GOP efforts to reverse the rule adopted by the CFPB that bans forced arbitration and class action waivers.