Equifax lawsuit | Florida woman’s lawsuit claims an Equifax error increased the cost of her loan.

Equifax lawsuit | Florida woman’s lawsuit claims an Equifax error increased the cost of her loan.

A Florida woman has filed a lawsuit against Equifax, alleging that the credit reporting company committed a string of mistakes this spring that led to a 130-point miscalculation that prevented her from obtaining a car loan.

Florida’s ORLANDO (AP) — A Florida woman has filed a lawsuit against Equifax, claiming that a 130-point error in her credit report that was part of a wider set of credit score inaccuracies the rating firm made this spring due to a coding issue prevented her from obtaining a car loan.

On behalf of Nydia Jenkins and probably millions of other people who requested three weeks of credit over a three-week period earlier this year, a class action complaint was filed in federal court in Atlanta. Due to the misunderstanding, the Jacksonville, Florida woman was compelled to accept a different, less advantageous loan that cost her $150 a month more than the one she had been approved for, according to the lawsuit.

Credit scores, which typically range from 300 to 850 points, provide lenders an idea of how big a risk a borrower is, and a higher score typically translates into better terms for consumers seeking mortgages, auto loans, or mortgages. According to the lawsuit, the mistakes broke the federal legislation that controls credit reporting bureaus.

From mid-March to early April, there were errors for three weeks. According to a review done by Equifax, the majority of credit scores did not change, and of those who did, only a small percentage would have had a different credit decision made, the company stated in an emailed statement on Thursday.

The Equifax statement said: “While the score may have changed, a score change does not necessarily suggest that a consumer’s credit decision was adversely impacted.”

The issues were caused by a code error, according to a different statement released by Equifax earlier this week, which “resulted in the potential underestimation of some attributes used in model calculations.” Less than 300,000 users, the company claimed, saw a score shift of 25 points or more.

Equifax reiterated, “Again, we do not take this situation lightly.

The lawsuit also requests an audit to determine which customers’ credit scores were impacted, money for credit repair services, and the creation of a fund to reimburse customers for any out-of-pocket costs they incurred as a result of the errors, in addition to seeking damages “to the fullest extent allowable by law.”

In 2017, hackers broke into Equifax, exposing 147 million Americans’ financial information. A $380 million settlement of class action lawsuits were allowed by a federal court in 2020; there was no finding of guilt or judgment of misconduct. According to the settlement, Equifax must spend at least $1 billion over five years on data security.

#lawsuitloans #settlementloans #classactionlawsuit

Read more Business News News , Today Politics Headline , Today Finace News Update ,Latest Social News date , World Highlight , Entertainment Latest News , Today Sports News Update , Latest Education Update , Real Estate Today Update

Business