Business Government

PA AG Settles With Equifax Over Inaccurate Credit Reporting

The error may have impacted as many as 51,000 PA residents.

File photo.

The Pennsylvania Attorney General’s Office has settled with Equifax over the credit reporting mistake that inaccurately affected the credit reports of tens of thousands of state residents, Attorney General Michelle Henry announced.

The error led to potentially higher costs for consumers on loans and insurance policies for an estimated 51,000 Pennsylvanians.

Under the terms of the settlement, Equifax will pay $470,000 to the Pennsylvania Treasury and an additional $15,000 in costs to the Pennsylvania Attorney General’s Office.

The office said the settlement marks the most significant penalty imposed in a consumer finance case by the state’s top law enforcement office since at least 2010.

The issue stemmed from a coding error discovered by Equifax in March 2022, which inaccurately conveyed consumer credit information to lenders for three weeks. The incorrect information resulted in higher pricing for some loans and insurance policies than if accurate data had been provided.

Although Equifax partially addressed the problem by April 6, 2022, and fully rectified it by April 8, 2022, the impact of the error prompted concern, a statement said.

Equifax has committed to accepting reimbursement requests from lenders and insurers through the end of 2024.

“This settlement holds Equifax accountable for failing to do its most basic job. We hope that today’s announcement will cause more lenders and insurers to adjust interest rates and refund overpayments to any consumers who were impacted by a negative score shift. We appreciate that Equifax has promised to accept requests for reimbursement from lenders and insurers through the end of 2024,” Henry said.

Consumers who believe they were impacted by this or other issues related to Equifax are urged to contact the Pennsylvania Attorney General’s Office by filing a complaint, emailing, or calling 1-800-441-2555.

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