Equifax issued incorrect credit score scores to thousands and thousands of shoppers

In some cases, the errors were large enough (at least 300,000 users were at least 25 points apart) that some prospective borrowers may have been wrongfully denied a loan, the company said in a statement.

Shares (EFX) fell about 2% on Tuesday and was down nearly 5% shortly after Wednesday’s open.

According to the company, the issue was caused by a “coding issue” when changing one of Equifax’s servers. [and] resulted in possible miscalculation of credit scores.

Although Equifax did not specify dates or numbers, June 1 In an alert to its clients, mortgage agency Freddie Mac said Equifax told the agency that about 12% of all credit scores published since March 17 by April 6, may be incorrect.

Equifax wrote that there was “no change in the vast majority of scores” and that “credit reports were not affected.” But the company declined to comment to CNN Business about how people can find out if they were among those whose credit scores were misreported and what remedies they might have if they were issued higher interest rates or denied a loan altogether because of the “snafu.” “.

Equifax released its statement later Tuesday, hours after the Wall Street Journal. published a message about mistakes. National Mortgage Professional trade publication reported in May that Equifax alerted lenders to possible incorrect scores, and the company released a statement to the Journal at the time acknowledging the technology-based error.

Tuesday’s disclosure of the scoring errors came just after Equifax said its board had voted to give CEO Mark Begor $25 million. USD retention bonus package.

A regulatory filing last Friday announcing the bonus said the board believes Boger is “uniquely qualified to continue to lead the company through our final $1.5 billion.” USD Value in Stages of Technology Transformation”.

Equifax monitors the credit history of millions of borrowers—almost all Americans—and sells that information to banks and other lenders. As one of the three major credit reporting companies, Equifax plays a small role in the credit score business: Its information helps lenders determine borrowers’ interest rates or reject borrowers seeking mortgages, car loans or credit cards.

This isn’t the first problem with Equifax’s data. In 2017, the company revealed that personal information about almost 150 million people was compromised. Finally, the company reached an agreement to pay up to 700 million.

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